Humber/Ontario Real Estate Course 1 Exam Practice

Under the Code of Ethics, which of the following does NOT promote acting in the best interests of a client?

1. Advising a buyer to inflate income for mortgage approval

2. Recommending a buyer seek legal advice before signing a purchase agreement

3. Providing updates to a seller about recent neighborhood sales activities

4. Informing a buyer about potential issues that they did not notice

5. Disclosing material facts about a property accurately

6. Complying with all regulatory requirements

The correct answer is: Advising a buyer to inflate income for mortgage approval

The correct answer is the first option, as advising a buyer to inflate their income for mortgage approval is clearly unethical. This action does not promote acting in the best interests of the client. Instead, it encourages dishonesty and can lead to significant consequences for both the buyer and the real estate agent. In contrast, the other choices reflect actions that are ethical and align with the client's best interests. Recommending that a buyer seek legal advice ensures that they understand the implications of their purchase, ultimately empowering them to make informed decisions. Providing updates to a seller about recent neighborhood sales helps them gauge their property's market position. Informing a buyer about potential issues enhances transparency, enabling them to make educated choices. Accurately disclosing material facts is fundamental in fostering trust and ensuring clients are aware of what they are entering into. Finally, complying with all regulatory requirements is essential for maintaining legal and ethical standards within real estate practices, always prioritizing the protection of client interests.