A client instructs their Alberta real estate associate to present an offer that contains a deliberately misleading term designed to deceive the other party. Under the RECA Code of Conduct, what should the associate do?
Correct Answer
B) Refuse to present the offer and advise the client that the associate cannot participate in fraudulent or misleading conduct; if the client insists, the associate should consider terminating the relationship
Under the RECA Code of Conduct, an associate's duty of honesty and integrity overrides a client's instructions when those instructions involve fraud or misrepresentation. The associate must refuse to participate in dishonest conduct and should advise the client accordingly. If the client insists on the misleading approach, the associate should consider terminating the agency relationship.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Agency & Professional Ethics Question
Background Knowledge for Agency & Professional Ethics
Real World Application in Agency & Professional Ethics
Common Mistakes to Avoid on Agency & Professional Ethics Questions
Key Terms
More Agency & Professional Ethics Questions
What is the primary fiduciary duty that a real estate agent owes to their client?
When must a real estate agent disclose that they are representing both the buyer and seller in the same transaction?
Which of the following scenarios represents a conflict of interest that must be disclosed?
What information must an agent disclose to a buyer client about a property's condition?
A buyer's agent learns that the seller is motivated to sell quickly due to financial difficulties. What should the agent do with this information?
- → Under what circumstances can a real estate agent represent both parties in a transaction without written consent?
- → An agent discovers that a property has a history of flooding that was not disclosed by the seller. The agent's duty is to:
- → When can a real estate agent share confidential client information with another party?
- → A listing agent receives two offers simultaneously - one from their own buyer client and one from another agent's client. Both offers are identical in price and terms. How should the agent handle this situation ethically?
- → An agent learns that a major development project will be announced near their client's property, likely increasing its value significantly. The client wants to list immediately at current market value. What is the agent's ethical obligation?
- → What is the primary fiduciary duty that a real estate agent owes to their client?
- → When must a real estate agent disclose their relationship with a client to other parties in a transaction?
- → Which of the following best describes the duty of confidentiality owed by a real estate agent?
- → A real estate agent discovers that a property they are listing has a leaky basement that the seller has not disclosed. What should the agent do?
- → In Ontario, what is required before a brokerage can represent both the buyer and seller in the same transaction?
People Also Study
Real Property Law
60 questions
Contracts & Agreements
60 questions
Mortgage & Real Estate Finance
60 questions
Land Use & Planning
50 questions
Related Study Resources
Helpful Resources
Previous Question
A brokerage in BC uses designated agency to manage an in-house transaction. Licensee A represents the seller and Licensee B represents the buyer. Under BCFSA rules, which of the following must occur to maintain the designated agency structure?
Next Question
A licensee discovers that their client intends to use a property for an illegal purpose. Under RESA and BCFSA professional standards, what should the licensee do?