Humber/Ontario Real Estate Course 3 Exam Practice

When must a salesperson disclose their representation of the seller during an open house to a potential buyer?

1. After the potential buyer has fully toured the house.

2. Before an offer is made.

3. As soon as is practicably possible.

4. When the interested buyer calls to view the house for a second time.

5. After verifying the buyer's financial qualifications.

6. Before sharing details about the property.

The correct answer is: As soon as is practicably possible.

A salesperson must disclose their representation of the seller as soon as is practicably possible to ensure transparency and uphold ethical standards in real estate transactions. This requirement fosters trust and ensures that potential buyers are aware of the relationships and loyalties at play before they engage in discussions or negotiations. The timing of the disclosure is critical; it should happen early enough to allow buyers to make informed decisions about their interest in the property, particularly since they may be considering making an offer. In this context, "as soon as is practicably possible" emphasizes the need for promptness in disclosure, aligning with the principle that all parties should be informed to avoid any confusion or misrepresentation. Other timings or conditions for disclosure, such as waiting until after touring the house, before an offer is made, or only upon a second inquiry, do not fulfill the ethical obligation for upfront transparency required in real estate dealings. The requirement to disclose also prevails over checking a buyer's financial qualifications or discussing property details, as those actions could lead to a false sense of security for the buyer without clear knowledge of the agent's loyalty.