Humber/Ontario Real Estate Course 4 Exam Practice

Regarding a salesperson's duties to a client or customer, which statement is correct?

1. The extent that duty of care is owed varies for a client versus a customer.

2. Both a customer and a client are owed fiduciary duties.

3. A client is owed competent and diligent service, but not a customer.

4. A salesperson is not obligated to disclose known material facts to a customer.

The correct answer is: The extent that duty of care is owed varies for a client versus a customer.

When it comes to a salesperson's duties to a client or customer, it is important to understand the distinction between the two. While a client is typically someone who has a closer and ongoing relationship with the salesperson, a customer is usually a one-time transaction. This means that the level of duty of care owed to a client may be higher as there is a stronger level of trust and reliance on the salesperson's expertise. Therefore, statement A is correct in stating that the extent of duty of care may vary for a client compared to a customer. Option B is incorrect because while both a client and a customer may have certain expectations of the salesperson, only a client is owed fiduciary duties. A fiduciary relationship is one that involves trust, confidence, and reliance, which is typically present in a relationship with a client, but not with a customer. Option C is incorrect as well because a salesperson owes both competent and diligent service to both clients and customers. This means that they must have a certain level of knowledge and expertise in their field and provide prompt and thorough assistance to both parties. Finally, option D is incorrect as a salesperson does have an obligation to disclose known material facts to both clients and customers. This