Humber/Ontario Real Estate Course 4 Exam Practice

Which statement is accurate regarding the duties owed to customers and clients?

1. Salesperson must determine and disclose property facts for all

2. Salesperson provides equal service for both customers and clients

3. Clients must receive fiduciary duties, unlike customers

4. Confidential negotiation strategies are shared by Salesperson Mikar

5. Salesperson Mikar owes a duty of competence only to clients

6. Customer information is not shared with the salesperson's clients

The correct answer is: Confidential negotiation strategies are shared by Salesperson Mikar

The accurate statement regarding the duties owed to customers and clients is that clients must receive fiduciary duties, unlike customers. Understanding this distinction is crucial in real estate practice. Clients are individuals with whom a real estate professional has a written agreement to provide certain services, which includes fiduciary duty obligations such as loyalty, full disclosure, confidentiality, and acting in the client's best interest. On the other hand, customers do not have the same level of representation and protection under the law, meaning they do not receive fiduciary duties. The salesperson has a duty to treat customers fairly but does not owe the same level of loyalty or confidentiality as with clients. This information is essential for real estate professionals to understand the nature of their relationships with clients and customers, ensuring they provide the appropriate level of service and protection as required by law.