Humber/Ontario Real Estate Course 4 Exam Practice

When Buyer Allen is interested in a lakefront property on South Lake shore and Real Estate Agent Karen is aware of a suitable 'for sale by owner' property that is not listed, what should Agent Karen do?

1. There is no obligation if the property isn’t listed with a brokerage.

2. Ethically, Agent Karen should inform Allen about the for sale by owner property.

3. Only inform the buyer if the seller agrees to pay commission to Karen's brokerage.

4. Inform Allen about the property only if specifically asked about 'for sale by owner' properties.

The correct answer is: Ethically, Agent Karen should inform Allen about the for sale by owner property.

The correct option emphasizes the ethical responsibility that real estate agents have towards their clients, regardless of whether a property is listed with a brokerage or not. Ethically, Agent Karen should inform Buyer Allen about the for sale by owner property because it is in Allen’s best interest to be made aware of all available options that fit his criteria, especially since he is actively seeking a lakefront property. This disclosure reflects good practice in terms of honesty, transparency, and client advocacy, which are keys to building trust and maintaining a professional relationship. The other choices do not uphold the same ethical standard. Not acting on the opportunity simply because the property is not listed with a brokerage ignores the agent’s role in ensuring the client has access to all relevant real estate options. Likewise, the notion of informing the buyer only if the seller agrees to pay a commission limits the agent’s professional duty to inform their client. Relying on a buyer's direct inquiry before providing information may also prevent the buyer from making fully informed decisions.