Humber/Ontario Real Estate Course 4 Exam Practice

What should a salesperson do if a buyer client informs them financing is unlikely shortly after offer acceptance?

1. Declare the offer null and void.

2. Immediately inform the seller of this conversation.

3. Take a wait and see attitude on the whole matter.

4. Follow the buyer's instructions and make no statements to the seller.

The correct answer is: Immediately inform the seller of this conversation.

When a buyer client informs a salesperson that financing is unlikely shortly after the offer has been accepted, the most appropriate action for the salesperson is to immediately inform the seller of this conversation. This choice aligns with the salesperson's duty of disclosure and obligations towards the seller's best interests. In a real estate transaction, the salesperson has a fiduciary responsibility to both their clients and, in some cases, the seller. Since the buyer's ability to secure financing is critical to the completion of the sale, any concerns regarding financing directly impact the transaction. Promptly communicating this information allows the seller to be aware of potential complications and to make informed decisions going forward, whether that involves considering other offers or preparing for negotiations related to the buyer's financing issues. The other choices entail actions that may be less beneficial to both parties involved. Declaring the offer null and void may preemptively end the agreement without fully exploring the buyer's options. Adopting a wait-and-see attitude could lead to unnecessary delays or complications, while following the buyer's instructions to remain silent does not fulfill the salesperson's duty to keep the seller informed, especially about significant issues that could affect the sale.