Humber/Ontario Real Estate Course 3 Exam Practice

Which statement accurately reflects duties owed by a salesperson?

1. A client is owed a higher duty of care than a customer

2. Fiduciary duties are owed to both client and customer

3. A client is not owed diligent service

4. Known material facts need not be disclosed to customers

5. Clients are responsible for marketing services

6. Customers owe a duty of loyalty to the salesperson

The correct answer is: A client is owed a higher duty of care than a customer

The statement that accurately reflects duties owed by a salesperson is that a client is owed a higher duty of care than a customer. This is because the relationship between a salesperson and their client is more significant and governed by greater responsibilities, including loyalty, full disclosure, and care in fulfilling the client’s interests. Clients, who engage in a formal agreement with the salesperson, expect a level of diligence and professionalism that is distinct from that which is owed to customers, who are not in a formal relationship. This differential obligation stems from the fiduciary relationship established between the salesperson and their client, which mandates a higher standard of care. In contrast, customers are generally afforded a lower level of duty of care. The salesperson's obligation towards them is limited and does not include fiduciary duties, reflecting the more transactional nature of that relationship.