Humber/Ontario Real Estate Course 3 Exam Practice

What should a salesperson do when a buyer indicates financing is unlikely for a conditional offer?

1. Inform seller immediately

2. Take a wait and see attitude

3. Declare offer void

4. Follow buyer's instructions to say nothing

5. Find buyer alternate financing

6. Delay informing seller until final decision

The correct answer is: Inform seller immediately

When a buyer indicates that financing is unlikely for a conditional offer, the appropriate action for a salesperson is to inform the seller immediately. This is important because the seller has a right to know the status of the offer and any potential risks associated with it. Transparency is crucial in real estate transactions, and keeping the seller informed allows them to make educated decisions regarding their property. Notifying the seller about the buyer's financing concerns helps the seller assess their options, including whether to accept, reject, or negotiate the offer further. Additionally, this action fosters trust and maintains open communication, which is essential in the relationship between the salesperson, the seller, and potential buyers. Other reactions, such as taking a wait-and-see attitude or delaying notification, could compromise the seller's ability to respond appropriately to the offer's circumstances. Finding alternate financing for the buyer might seem helpful, but it goes beyond the salesperson's role in facilitating communication and may not be feasible. Therefore, informing the seller immediately reflects professionalism and ensures that all parties involved are aware of the current situation regarding the offer.