In a situation where a seller accepts a conditional offer but later receives a significantly better unconditional offer, what is the legal and ethical approach for the seller's agent?

Option A: Advise the seller to immediately accept the better offer and cancel the first contract

This approach violates contract law by advising breach of a valid agreement. Canadian law requires contracts to be honored unless specific legal provisions allow termination. An agent cannot advise canceling a binding contract simply because a better offer arrives, as this could expose both the seller and agent to legal liability for breach of contract and potentially damages.

Option C: Refuse to present the second offer since the seller is already under contract

This violates the agent's fundamental duty to present all offers to their client. Under TRESA and provincial regulations, agents must present every offer received, regardless of existing contractual obligations. Refusing to present an offer denies the seller important market information and violates the agent's fiduciary duty to act in the client's best interests.

Option D: Encourage the first buyer to remove their conditions quickly without disclosure

This approach is unethical and potentially fraudulent as it involves withholding material information from the first buyer. Agents have duties to all parties in a transaction and cannot manipulate buyers by encouraging hasty decisions without full disclosure. This could violate FINTRAC regulations and professional conduct standards, exposing the agent to disciplinary action.