Humber/Ontario Real Estate Course 4 Exam Practice

When is a buyer’s agent obligated to disclose their client’s intention to resell the property soon after purchase?

1. Only if the intent could impact the seller’s decision to sell.

2. Always, regardless of impact on the sale.

3. Never, as it’s not relevant information for the seller.

4. Only if the seller specifically requests information about the buyer's plans.

5. Only during closing.

6. Upon signing the initial offer.

The correct answer is: Only if the intent could impact the seller’s decision to sell.

A buyer's agent is obligated to disclose their client’s intention to resell the property soon after purchase if that information could significantly impact the seller's decision to sell. The rationale behind this obligation is rooted in the principle of transparency and fairness in the real estate transaction process. If a buyer intends to resell the property quickly, the seller may want to know this information, as it could influence their perception of the offer, pricing strategy, or any terms associated with the sale. Understanding the dynamics of the real estate market, the seller might view a buyer planning to flip the property as potentially providing a lower market value or might have concerns about the transaction's must-haves regarding conditions or timelines. Thus, revealing this intention is important for making an informed decision during the negotiation process. Other options suggest either an absolute obligation to disclose without consideration of relevance, leaving sellers in the dark regardless of context, or scenarios where disclosure is limited to specific requests or occurrences. These perspectives do not align with the principles of ethical conduct and market realities that govern the duties of an agent in a transaction. Hence, the focus is always on the relevance of the information and its potential ramifications on the sale itself.