Humber/Ontario Real Estate Course 3 Exam Practice

Question: 1 / 1165

A salesperson has been showing houses to a buyer customer. The buyer expressed a keen interest in a single-family home that backs onto a vacant field that neighborhood children have been using for a baseball diamond. The buyer asks the salesperson if the field is a public park. The salesperson is not really certain, but does tell the buyer that it is green space and, as such, will not be built on. Which of the following statements is correct?

The Salesperson Has Correctly Answered the Question to the Best of His Ability and Has No Further Obligation in That Regard

The Salesperson Has Failed to Exercise Reasonable Care and Skill in Answering the Buyer's Question

The determination that the salesperson has failed to exercise reasonable care and skill is rooted in the responsibility real estate professionals have to provide accurate and complete information to their clients. When the buyer explicitly asked whether the adjacent field is a public park, the salesperson had an obligation to either provide a definitive answer based on verifiable facts or to clarify that they were unsure and would find out the correct information.

Real estate transactions involve significant financial decisions, and buyers often rely heavily on the expertise and knowledge of their salespersons. By providing information about the field being "green space" without confirming its status or potential future development, the salesperson opens themselves and their brokerage to potential liability if the buyer relies on this information and later finds it to be incorrect. Therefore, a lack of thoroughness in checking facts or inadequate research reflects a failure to practice due diligence, ultimately leading to a breach of their duty to act in the best interests of their clients.

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The Issue of Whether the Adjacent Field Is Green Space or Otherwise Is Not Directly Relevant to Buying This Home and the Salesperson Should Inform the Buyer of That Fact

If the Salesperson Does Not Completely and Accurately Answer the Question Posed by the Buyer, She Would Be in Breach of Her Fiduciary Duties to That Buyer

The Salesperson Should Refrain from Offering Any Opinion on Matters Outside Property Boundaries

The Salesperson Should Have Offered to Look Up the Information and Get Back to the Buyer Later

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