A real estate agent represents a seller and discovers that a potential buyer is their spouse's business partner. What should the agent do?
Correct Answer
A) Disclose the relationship to the seller immediately
The agent must disclose this relationship to maintain transparency and avoid potential conflicts of interest. The seller has the right to know about any relationships that might influence the agent's ability to negotiate in their best interests.
Why This Is the Correct Answer
Option A is correct because disclosure is mandatory under Canadian real estate legislation. TRESA and provincial regulations require agents to disclose any relationships that could create a conflict of interest or influence their ability to represent their client effectively. The seller has the right to know about this relationship so they can make an informed decision about whether to continue with this agent or seek alternative representation. Immediate disclosure maintains the fiduciary duty of loyalty and transparency.
Why the Other Options Are Wrong
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- → Which of the following best describes the duty of confidentiality owed by a real estate agent?
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