Humber/Ontario Real Estate Course 3 Exam Practice

Which duty is owed to both clients and customers by a real estate agent?

1. Disclose material facts relevant to real estate transactions.

2. Protect the interest of both clients and customers equally.

3. Keep all information from clients and customers confidential.

4. Put representation agreements in writing and signed by both brokerage and client or customer.

5. Provide advice on legal matters.

6. Identify potential buyers for properties before listing.

The correct answer is: Disclose material facts relevant to real estate transactions.

Disclosing material facts relevant to real estate transactions is indeed a fundamental duty that a real estate agent owes to both clients and customers. This obligation stems from the need for transparency and honesty in real estate dealings, ensuring that all parties involved are making informed decisions based on accurate and relevant information about a property. Material facts can include information about the condition of the property, zoning issues, or even neighborhood safety, which could significantly impact a buyer’s decision. By disclosing these facts, agents uphold ethical standards and contribute to a fair transaction process. The other options, while they may touch on important aspects of real estate practice, do not reflect the universal duty owed to both clients and customers in the same way that disclosure of material facts does. For instance, protecting the interests of clients typically involves a fiduciary responsibility that doesn’t extend to customers in the same manner. Similarly, confidentiality obligations often vary based on whether one is a client or a customer.