Humber/Ontario Real Estate Course 3 Exam Practice

In the context of real estate, what does duty of care entail?

1. A salesperson should not answer any questions about home inspectors posed by a buyer customer because, in doing so, he or she would be giving advice to that customer.

2. A standard of care is established based on how reasonable real estate salespersons would conduct themselves under similar circumstances.

3. A salesperson is obligated to act in the best interests of their client and provide honest and fair service to customers.

4. When working with buyers and sellers, a limited duty of care is owed to both regardless of whether they are clients and customers.

The correct answer is: A standard of care is established based on how reasonable real estate salespersons would conduct themselves under similar circumstances.

The correct answer emphasizes that the duty of care in real estate is determined by a standard of reasonableness that outlines how real estate professionals are expected to conduct themselves in similar situations. This means that the actions and advice given by salespersons are judged based on what is considered reasonable and prudent within the profession. The duty of care expects real estate professionals to perform their responsibilities competently, ensuring that their conduct aligns with the expectations of their peers in the industry, thereby safeguarding the interests of their clients and customers. Understanding this concept is essential because it underlines the importance of professionalism and ethical standards in real estate transactions. The duty of care not only protects clients but also reinforces the credibility of the real estate profession as a whole. The emphasis on a standard of care ensures that agents maintain a commitment to diligence, attention to detail, and a thorough understanding of real estate processes, ultimately promoting trust in client relationships. The other options, while related to the responsibilities of salespersons, do not capture the essence of how duty of care is contextualized through a standard of reasonableness expected in the industry. They may address aspects such as the obligation to act in the client’s best interest or the nature of the relationship with customers, but they do not encapsulate the