Humber/Ontario Real Estate Course 3 Exam Practice

What is the appropriate action for a salesperson who knows the seller is financially pressured but is asked by a buyer?

1. Reveal any information known, respecting general customer obligations.

2. Offer a general assessment without breaching confidentiality.

3. Seek counsel from the brokerage's managing director.

4. Maintain seller confidentiality unless authorized to disclose.

5. Suggest the buyer conduct their own inquiries independently.

6. Confide in the buyer to facilitate a quicker sale.

The correct answer is: Maintain seller confidentiality unless authorized to disclose.

Maintaining seller confidentiality unless authorized to disclose is essential in real estate practices. Confidentiality is a fundamental principle in the fiduciary relationship between the agent and the client. When a salesperson is aware that a seller is under financial pressure, they are obligated to protect that sensitive information. Disclosing this kind of personal and financial information without the seller's consent not only breaches the trust placed in them but could also have legal ramifications and damage the seller's position in negotiations. In real estate, a salesperson serves as an agent to the seller, which means they owe their client (the seller) full loyalty and confidentiality. Therefore, unless the seller explicitly gives permission to share that information, the salesperson must keep it private. This confidentiality helps in fostering a trusting environment that benefits the seller and the overall integrity of the transaction process. Other options may suggest various ways to engage with the buyer or provide information, but they do not align with the ethical and legal standards expected in real estate practices that prioritize client confidentiality.