Humber/Ontario Real Estate Course 4 Exam Practice

Under the Code of Ethics, how must Salesperson White handle a situation where remuneration affects offer acceptance?

1. Do not disclose any remuneration details.

2. Always disclose remuneration details to clients only.

3. Disclose remuneration terms to other offer-making parties if it influences whether an offer is accepted.

4. Only disclose remuneration details if asked directly by the seller.

5. Never disclose remuneration details to other salespersons.

6. Disclose remuneration only if the offer has been rejected.

The correct answer is: Disclose remuneration terms to other offer-making parties if it influences whether an offer is accepted.

The correct answer emphasizes the importance of transparency and ethical conduct in real estate transactions. According to the Code of Ethics, when remuneration terms could influence whether an offer is accepted, it is crucial to disclose these details to other parties making offers. This transparency fosters trust and ensures that all parties have a fair understanding of the financial incentives involved, which can directly impact decision-making in the negotiation process. Additionally, keeping such information private could lead to misunderstandings and could be perceived as a lack of integrity. When all parties are fully informed, it supports a more ethical marketplace and encourages fair dealings. This approach aligns with the broader principles of fair and honest representation in real estate transactions, contributing to a reputation of professionalism and trustworthiness within the industry.