A buyer's agent learns that their client has been pre-approved for a mortgage up to $500,000, but the client instructs them to make offers as if they were only approved for $400,000 to strengthen their negotiating position. What should the agent do?
Correct Answer
C) Refuse to make offers with false financial information
While agents must follow lawful client instructions, they cannot participate in misrepresentation or fraud. Making offers with deliberately false financial information violates professional ethics and potentially constitutes fraud, regardless of the client's intent.
Why This Is the Correct Answer
Option C is correct because real estate agents cannot participate in misrepresentation or fraud, even when instructed by clients. Under TRESA and provincial regulations, agents must maintain honesty and integrity in all professional dealings. Making offers with deliberately false financial information constitutes misrepresentation and potentially fraud. Professional standards require agents to refuse client instructions that would violate ethical or legal obligations, as the duty of loyalty doesn't extend to illegal or unethical activities.
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Previous Question
A buyer's agent learns that their client has been pre-approved for $500,000 but has told the agent to look only at properties under $400,000. The client has not authorized the agent to share any financial information. The seller's agent asks about the buyer's maximum budget. How should the buyer's agent respond?
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A buyer's agent learns that their client has been pre-approved for a mortgage up to $500,000, but the client instructs them to only look at properties under $400,000. What should the agent do with this information?