Humber/Ontario Real Estate Course 4 Exam Practice

What happens if a salesperson promises a buyer they can build on common elements and the request is denied?

1. The buyer should have investigated further

2. The salesperson made a mistake but faces no legal action

3. The salesperson violated the REBBA Code of Ethics

4. RECO will not pursue the matter due to legal action

5. The buyer can only claim damages from the condo corporation

6. The brokerage must compensate the buyer

The correct answer is: The salesperson violated the REBBA Code of Ethics

The reasoning behind selecting that the salesperson violated the REBBA Code of Ethics is grounded in the obligation of real estate professionals to provide accurate and honest representations to all parties involved in the transaction. By assuring the buyer that they could build on common elements, the salesperson potentially misled the buyer, which goes against the ethical standards stipulated in the Real Estate and Business Brokers Act (REBBA). The Code emphasizes the need for transparency and integrity, requiring salespersons to base their representations on factual information. If a seller makes promises that are not aligned with the governing documents of the condominium or local regulations, it undermines the trust inherent in the buyer-salesperson relationship. While the other options may touch on relevant considerations, they do not correctly address the primary issue of ethical conduct in real estate practice. The violation of the REBBA Code holds significant weight in ensuring accountability for misrepresentation within real estate transactions.