Humber/Ontario Real Estate Course 4 Exam Practice

What is the role of a salesperson when a buyer shows interest in lowering the offer price?

1. Disclose all known information that would benefit the buyer's negotiation.

2. Clarify the brokerage’s dual role and maintain confidentiality of the seller’s position.

3. Seek additional information from the seller to assist the buyer.

4. Encourage the buyer to make a lower offer without disclosing any specifics.

5. Depends on the buyer’s level of interest in the property.

6. Suggest the buyer undertakes their own research on the seller’s position.

The correct answer is: Clarify the brokerage’s dual role and maintain confidentiality of the seller’s position.

The role of a salesperson when a buyer expresses interest in lowering the offer price involves clarifying the brokerage’s dual role and ensuring the confidentiality of the seller’s position. In real estate transactions, it is crucial for salespeople to maintain ethical standards, which include protecting the interests of their clients. When a salesperson is acting on behalf of the seller while also working with a buyer, there is a responsibility to provide transparent communication without compromising the seller's negotiating stance or sensitive information. This maintains the integrity of the transaction, ensuring that all parties understand their roles and the boundaries that exist due to the dual agency situation. Upholding confidentiality helps to foster trust and prevents any potential conflicts from arising, as the seller must not be disadvantaged in negotiations due to information disclosed in confidence to the salesperson. In discussions about pricing, it's essential for the salesperson to guide the buyer while ensuring that they do not inadvertently compromise the seller's position by disclosing details that could weaken the seller's bargaining power. Therefore, the option regarding clarifying the dual role and maintaining confidentiality accurately reflects the salesperson's responsibility in this context.