Humber/Ontario Real Estate Course 4 Exam Practice

If a seller reveals his minimum acceptable price to the listing salesperson, which action would breach confidentiality?

1. Advertising that offers over a certain lower threshold will be seriously considered.

2. Revealing the minimum acceptable price to a prospective buyer.

3. Considering offers that meet the minimum acceptable price privately.

4. Contacting potential buyers to inform them of the seller's minimum acceptable price.

5. Advising the seller to adjust the listing price to the minimum acceptable.

6. Discussing the seller's lowest acceptable price with other registrants.

The correct answer is: Revealing the minimum acceptable price to a prospective buyer.

The action of revealing the minimum acceptable price to a prospective buyer would breach confidentiality because it would disclose sensitive financial information that the seller intends to keep private. Confidentiality in real estate transactions is critical to protect the interests of the seller. When a seller shares their minimum acceptable price with their listing salesperson, that information is meant to remain confidential and is not intended to be disclosed to potential buyers. If the listing salesperson were to share this price, it could disadvantage the seller in negotiations, potentially leading to a sale at a lower price than they would have otherwise accepted. In contrast, the other actions listed either involve maintaining confidentiality, such as considering offers privately or advising the seller on adjustments without disclosing the minimum price, or are general marketing strategies that do not involve breaching the seller's trust. The focus in this context should always remain on protecting the seller’s confidential information and maximizing their negotiating position.