A buyer's agent learns that their client has been pre-approved for $500,000 but tells the agent their maximum budget is $400,000. What should the agent do with this information?
Correct Answer
D) Keep the pre-approval amount confidential and respect the stated budget
Agents have a duty of confidentiality and must keep all client information private unless authorized to disclose it. The client's financial capacity is confidential information that cannot be shared without permission.
Why This Is the Correct Answer
Option D correctly reflects the agent's fiduciary duty of confidentiality under Canadian real estate legislation. TRESA, RESA, and provincial regulations require agents to keep all client information confidential unless specifically authorized to disclose. The buyer's pre-approval amount is material confidential information that cannot be shared without explicit permission. The client has chosen to limit their stated budget, and this strategic decision must be respected regardless of potential negotiation advantages.
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A salesperson representing a buyer in Ontario learns, through no breach of their own duties, that the seller would accept $50,000 less than the asking price. How should the salesperson handle this information?
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A buyer's agent learns that their client has been pre-approved for $500,000 but the client tells the seller's agent they can only afford $400,000. What should the buyer's agent do?