A real estate agent discovers that their buyer client's mortgage pre-approval has expired, but the client insists on submitting an offer with a financing condition anyway. What should the agent do?
Correct Answer
D) Advise the client of the risks and document the advice given
The agent has a duty to provide professional advice about potential risks while respecting the client's right to make their own decisions. Documenting the advice protects both the client and agent, and ensures the client is making an informed decision despite the expired pre-approval.
Why This Is the Correct Answer
Real estate agents have a professional duty to provide competent advice while respecting client autonomy. When a client wants to proceed despite risks (expired pre-approval), the agent must inform them of potential consequences like offer rejection or financing difficulties. Documenting this advice protects both parties legally and ensures the client makes an informed decision. The agent cannot override the client's choice but must ensure they understand the risks involved.
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- → A seller's salesperson is estimating the buyer's costs of reviewing an Ontario condominium unit's status certificate. What is the most the corporation may charge for providing the certificate?
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