A buyer's agent discovers that their client's pre-approved mortgage amount is $50,000 higher than the offer price they want to submit. What should the agent do with this information?
Correct Answer
B) Keep it confidential to protect the client's negotiating position
How much more a buyer could pay is confidential client information. Under the Code of Ethics (O. Reg. 365/22, s. 12), a registrant must not disclose a client's confidential information to a third party without the client's written consent, unless the law authorizes or requires it, and no law requires this figure to be shared. Keeping it confidential also serves the duty to promote and protect the client's best interests (s. 8).
Why This Is the Correct Answer
This answer applies Code of Ethics s. 12 directly. The pre-approval figure is the buyer's confidential information, the buyer has not given written consent to share it, and no law requires it to be disclosed. Revealing it would also work against the client's best interests under s. 8, because the seller would learn the buyer can pay more than the offer.
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