An Ontario salesperson represents a seller who receives two identical offers, one of them from the salesperson's spouse. The seller does not know about the relationship. What does the Code of Ethics require if the salesperson is to keep acting for the seller?
Correct Answer
D) Disclose the relationship, advise independent advice, and get the seller's written consent
Code of Ethics s. 13 allows a registrant to provide or continue providing services despite a conflict of interest only after disclosing the relationship, advising the client to seek independent professional advice, taking reasonable steps to ensure the client understands the conflict, and obtaining the client's written consent. Withdrawal is not mandatory; carrying on without these steps is what the Code prohibits.
Why This Is the Correct Answer
Disclosure, advice to seek independent advice and written consent is correct because it tracks Code of Ethics s. 13, which permits a registrant to keep serving a client despite a conflict only after those steps, plus reasonable steps to ensure the client understands. The seller then decides with full knowledge, and the salesperson's continued role rests on the seller's written consent.
Why the Other Options Are Wrong
Deep Analysis of This Agency & Professional Ethics Question
Background Knowledge for Agency & Professional Ethics
Memory Technique
Exam Tip 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
A listing agent learns that the basement had water damage years ago that was fully repaired. The seller has no legal obligation to disclose it and refuses to mention it in the listing. What is the agent's best course of action?
Under the RECA Rules, a brokerage practising common law agency lists a seller's home, and one of its buyer clients wants to buy that home. How must the brokerage proceed?
Which of the following scenarios represents a conflict of interest that must be disclosed?
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?
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?
- → Which of the following best describes the duty of confidentiality owed by a real estate agent?
- → What information must an agent disclose to a buyer client about a property's condition?
- → A real estate agent discovers that a property they are showing has a known foundation issue that the seller has not disclosed. What should the agent do?
- → In a complex commercial transaction, a real estate professional discovers information that creates competing duties between their fiduciary obligation to their client and their duty to disclose material facts to other parties. How should this conflict be resolved?
- → An agent representing a buyer learns confidential information about the seller's motivation to sell quickly due to financial hardship. How should this information be handled?
- → 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?
- → A listing agent learns that the home was once used as a marijuana grow operation and has since been fully remediated. The seller's lawyer confirms the seller has no legal obligation to disclose this, and the seller does not want it disclosed. What should the listing agent do?
- → What is 'designated agency' in the context of Alberta real estate?
- → A buyer tells their Ontario salesperson that the seller is facing foreclosure and must sell quickly. How should the salesperson handle this information?
- → A self-represented buyer asks the Ontario seller's salesperson whether the asking price is a good deal. What should the salesperson do?
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
An agent represents a buyer interested in a property listed by another agent at the same brokerage. Both the buyer and the seller signed brokerage representation agreements, not designated representation agreements. What situation has been created under Ontario's TRESA rules?
Next Question
An Ontario listing agent represents a seller whose home was the site of a suicide two years ago. A buyer's agent asks directly whether any deaths have occurred on the property. The seller has told the listing agent not to disclose it, and the seller has no legal obligation to disclose it. What should the listing agent do?