Humber/Ontario Real Estate Course 1 Exam Practice

What should a salesperson do when aware of financial difficulties of their seller?

1. Inform buyers to create interest in the property

2. Disclose in general terms, safeguarding specific details

3. Seek permission from the seller to disclose specifics

4. Keep it confidential unless authorized by the seller

5. Refer buyers to the broker of record

The correct answer is: Keep it confidential unless authorized by the seller

The appropriate course of action when a salesperson is aware of the financial difficulties of their seller is to keep that information confidential unless the seller authorizes disclosure. In real estate transactions, maintaining the confidentiality of a seller's financial situation is crucial because it helps to protect the seller's interests and leverage in the sale. Disclosing such sensitive information without consent could undermine the seller's position and potentially affect their ability to negotiate the best terms for the sale of their property. Confidentiality fosters trust in the relationship between the seller and the agent, and it aligns with the ethical obligations that real estate professionals have toward their clients. Only if the seller explicitly permits the agent to disclose certain information should it be shared; otherwise, the salesperson should refrain from discussing the financial difficulties with potential buyers.