Humber/Ontario Real Estate Course 4 Exam Practice

When Buyer Nolan communicates willingness to pay full price during an open house, what should Salesperson Kelly do?

1. Proceed to negotiate the best price for Nolan.

2. Inform Nolan of her obligation to the seller before negotiation.

3. Negotiate a better price for Nolan without mentioning her client relationship with the seller.

4. Immediately disclose her client relationship with the seller to Nolan.

5. Inform Nolan that she can negotiate without breaching the obligation to the seller.

6. Disclose client obligations only after an offer is made.

The correct answer is: Immediately disclose her client relationship with the seller to Nolan.

When Buyer Nolan indicates his willingness to pay the full asking price during an open house, Salesperson Kelly should immediately disclose her client relationship with the seller. This action is grounded in the ethical obligations that real estate professionals have to ensure transparency and protect the interests of all parties involved in the transaction. Disclosing her relationship with the seller is crucial because it informs Nolan about potential conflicts of interest that may arise during negotiations. By doing so, Kelly allows Nolan to make an informed decision about how he wants to proceed, considering that she has a duty to the seller and may not be able to advocate for Nolan's best interests in the same way she could if there were no competing loyalties. Additionally, this approach helps maintain trust and integrity in the transaction, adhering to legal requirements and professional standards in real estate dealings. Ultimately, clarity regarding her fiduciary responsibilities can safeguard all parties' interests and promote a fair negotiating environment.