Humber/Ontario Real Estate Course 4 Exam Practice

What must a salesperson do if showing a property to a relative?

1. Disclose the relationship to the seller

2. Avoid disclosing as the relation is irrelevant

3. Have another agent present the offer

4. Terminate existing agency and establish a new buyer agreement

The correct answer is: Disclose the relationship to the seller

Disclosing the relationship to the seller is essential in real estate transactions to maintain transparency and uphold ethical standards. When a salesperson shows a property to a relative, they must inform the seller of this familial connection. This disclosure is important because it helps the seller understand any potential bias or vested interest that may influence the transaction. Failing to disclose such a relationship could lead to conflicts of interest and ethical dilemmas that may undermine trust between the parties involved. It also aligns with the duty of the agent to act in the best interest of their client and to maintain a clear and honest communication channel. The other options do not adequately fulfill the obligation of transparency required in real estate practices. Not disclosing the relationship would create an environment of secrecy that could harm the seller’s interests and undermine the integrity of the transaction. Having another agent present the offer is not a requirement in this scenario, nor does terminating existing agency or establishing a new buyer agreement address the need for full disclosure of the relationship.