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?
Correct Answer
A) Decline to answer rather than lie, and advise the seller of the risks
Neither TRESA nor its regulations require stigma disclosure, and where the seller has no legal obligation to disclose, Code of Ethics s. 12 bars the listing agent from revealing the client's confidential information without written consent. Code s. 5 forbids misrepresentation, so the agent may not deny the death either. The agent should decline to answer and advise the seller about the risks of silence, disclosing only if the seller consents in writing.
Why This Is the Correct Answer
This answer is correct because it satisfies both Code of Ethics duties. Declining to answer keeps the seller's confidential information private as s. 12 requires without written consent, and refusing to lie complies with s. 5. Advising the seller of the risks also fulfils the duty in s. 8 to promote and protect the client's best interests, and the seller may then choose to consent to disclosure in writing.
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?
- → 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?
- → 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?
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 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?
Next Question
An agent's spouse is interested in purchasing a property that the agent has listed. What steps must the agent take?