Humber/Ontario Real Estate Course 3 Exam Practice

Salesperson Peterson shows several listed properties to Buyer McLean without success. He knows of a for sale by owner property that fits McLean's criteria. What should Peterson do?

1. Not mention the property since it is not listed with a brokerage.

2. Inform the buyer about the property as an ethical obligation.

3. Only mention the property if the seller pays remuneration to the brokerage.

4. Inform the buyer only if asked about for sale by owner properties.

5. Suggest alternative properties not listed on local services.

6. Offer to represent the buyer in negotiations with the property owner.

The correct answer is: Inform the buyer about the property as an ethical obligation.

The most appropriate action for Salesperson Peterson is to inform the buyer about the for sale by owner property as an ethical obligation. Real estate professionals have a fiduciary duty to act in the best interests of their clients. This duty includes providing as much relevant information as possible, which allows the client to make informed decisions. In this scenario, although the property is not listed with a brokerage, it still meets the buyer's criteria. By keeping this information from McLean, Peterson would be withholding potentially valuable options that could lead to a successful purchase. Disclosing the for sale by owner property demonstrates professionalism, transparency, and an ethical commitment to serve the buyer's needs. This approach fosters trust in the agent-client relationship, which is critical in real estate transactions. Thus, it is not just about fulfilling legal requirements, but also about upholding professional standards and ensuring the buyer has access to all suitable properties.