Humber/Ontario Real Estate Course 4 Exam Practice

In the case where a seller is facing financial issues and discloses a lower acceptable offer than the listing price to the salesperson, what is the correct course of action?

1. Conveying the lower acceptable price to a serious buyer.

2. Maintaining strict confidentiality of the seller's specified minimum price.

3. Posting the adjusted acceptable price publicly.

4. Contacting previous interested buyers to inform them of the new price.

5. Consulting with other salespersons for advice.

6. Encouraging new offers close to the disclosed lower price.

The correct answer is: Maintaining strict confidentiality of the seller's specified minimum price.

Maintaining strict confidentiality of the seller's specified minimum price is crucial in real estate transactions. The relationship between a salesperson and their client, in this case, the seller, is built on trust and fiduciary duty. This means that the salesperson is obligated to act in the best interests of the seller, which includes keeping sensitive financial information private. Disclosing the seller's minimum acceptable price to potential buyers can undermine the seller's negotiating position. If buyers are aware of the lowest price the seller will accept, they may feel less inclined to make competitive offers, thinking they can simply negotiate down from that figure. This could lead to the seller not getting the best possible deal for their property. Maintaining confidentiality not only protects the seller's interests but also helps maintain fairness in the negotiation process among all interested buyers. By upholding this confidentiality, the salesperson ensures that the seller has the opportunity to maximize their sale price without unfair advantage being given to any potential buyer.