Humber/Ontario Real Estate Course 3 Exam Practice

What represents an illegal practice regarding Offer to Purchase submissions?

1. Soliciting multiple offers with the hope of creating bidding wars.

2. Presenting offers in a timely manner regardless of personal gain.

3. Delaying submission of offers to secure a better offer from another client.

4. Refusing to present offers unless directed by the client.

The correct answer is: Delaying submission of offers to secure a better offer from another client.

Delaying the submission of offers to secure a better offer from another client is considered an illegal practice as it represents a breach of fiduciary duty and professional ethics. Real estate agents are obligated to act in the best interests of their clients and to present all offers in a timely manner. By intentionally holding back an offer, the agent prioritizes their personal gain over their client's interests, creating an unfair disadvantage for the client who is trying to sell or purchase a property. This behavior undermines trust in the real estate profession and contravenes regulations designed to protect consumers. The other options reflect actions that are generally within acceptable professional conduct. Soliciting multiple offers to create a bidding war, for example, can be a strategy employed if done transparently and ethically. Presenting offers in a timely manner aligns with the duty to act in the best interests of the client. Refusing to present offers unless directed by the client can lead to ethical dilemmas, but it typically requires clearer circumstances to be deemed illegal, often depending on the specific context of the agent's fiduciary responsibilities.