Humber/Ontario Real Estate Course 4 Exam Practice

Buyer Wallace is interested in lakefront property, and Real Estate Agent Rachel knows of an unlisted 'for sale by owner' property. What should Rachel do?

1. Rachel is not required to inform Wallace if the property is unlisted.

2. Rachel should ethically inform Wallace about the 'for sale by owner' property.

3. Only inform Wallace if the seller agrees to pay commission to Rachel's brokerage.

4. Inform Wallace only if specifically asked about unlisted properties.

The correct answer is: Rachel should ethically inform Wallace about the 'for sale by owner' property.

Rachel's ethical duty as a real estate agent requires her to act in the best interest of her client, Wallace. By informing him about the unlisted 'for sale by owner' property, she is providing valuable information that could enhance his options in finding a suitable lakefront property. Real estate professionals have a responsibility to share relevant market opportunities with their clients, regardless of whether the property is listed through a traditional brokerage or not. This practice aligns with the principles of fiduciary duty, where agents are expected to be honest and transparent. Additionally, by giving Wallace this information, Rachel is fostering trust and demonstrating her commitment to helping him achieve his real estate goals. In contrast, not informing Wallace, regardless of the property’s listing status, would not uphold the ethical standards expected in real estate practice. This could limit Wallace's choices and potentially result in a missed opportunity for both the buyer and the agent.