Humber/Ontario Real Estate Course 3 Exam Practice

What should a salesperson do when they receive confidential pricing information from a seller?

1. Contact any potential buyers and advise them of the seller's lowest acceptable offer.

2. Keep the information confidential and not disclose it to any potential buyer.

3. Discuss the matter with potential buyers if they are serious about the property.

4. Advertise the property with the reduced potential offer price.

5. Inform the buyer's agent immediately about the confidential information.

6. Update the listing to reflect the lower price range.

The correct answer is: Keep the information confidential and not disclose it to any potential buyer.

A salesperson has an ethical and legal obligation to maintain the confidentiality of sensitive information acquired during a transaction. When a seller shares confidential pricing information, it is crucial for the salesperson to keep this information confidential and not disclose it to any potential buyer. This confidentiality helps build trust between the seller and the salesperson, ensuring that the seller’s interests are protected throughout the negotiation process. Furthermore, disclosing a seller's lowest acceptable offer or confidential pricing could undermine the seller's negotiating position, potentially resulting in unfavorable outcomes for the seller. By keeping the information private, the salesperson also aligns with professional standards and regulations governing real estate practice, which emphasize the importance of client confidentiality. Therefore, maintaining the confidentiality of this sensitive information is the appropriate course of action for a salesperson.