Humber/Ontario Real Estate Course 4 Exam Practice

When working with a buyer client, the buyer wishes to modify a clause in a purchase agreement. What should the salesperson do to ensure compliance with REBBA?

1. Modify the clause as per the buyer's instructions without further consultation.

2. Consult with the brokerage manager for advice.

3. Inform the buyer they cannot change the clause.

4. Refer the buyer to a lawyer for legal advice before making any modifications.

The correct answer is: Refer the buyer to a lawyer for legal advice before making any modifications.

When a buyer client wishes to modify a clause in a purchase agreement, referring them to a lawyer for legal advice before making any modifications is crucial for several reasons. First, real estate purchase agreements are legal documents, and any changes made to them can have significant implications for both the buyer and the seller. A real estate salesperson is not qualified to provide legal advice or make legal changes to such documents, as doing so could breach the regulations set by the Real Estate and Business Brokers Act (REBBA). This approach protects not only the buyer's interests but also the salesperson's professional standing and compliance with REBBA. By advising the buyer to consult with a lawyer, the salesperson ensures that the modification is legally sound and that the buyer understands the implications of the changes they wish to make. This aligns with ethical practices in real estate, promoting transparency and proper communication about legal rights and responsibilities. In contrast, modifying the clause without further consultation could lead to issues if the change is not in the best interest of the buyer or is not legally enforceable. Simply informing the buyer that they cannot change the clause does not address their needs or provide them with the required guidance. Consulting with the brokerage manager can be helpful in some situations, but it does not replace the need