Humber/Ontario Real Estate Course 3 Exam Practice

At what stage should a salesperson notify a seller if they are serving a buyer as a customer?

1. Before negotiating a price

2. After the property is sold

3. Before the presentation of the offer

4. After the buyer is pre-approved for a mortgage

5. After the buyer signs a customer service agreement

6. Before showing the property

The correct answer is: After the property is sold

The correct choice is that a salesperson should notify a seller of serving a buyer as a customer before the presentation of the offer. This notification is essential for maintaining transparency and trust in the transaction process. By informing the seller of the buyer's customer status prior to presenting an offer, the salesperson ensures that the seller is fully aware of the dynamics at play and can make informed decisions regarding their negotiations. Communicating this information at this stage helps clarify roles and sets expectations, allowing the seller to understand that the buyer does not have the same level of representation as a client would. This step upholds ethical standards in real estate practices and ensures that all parties involved are on the same page, which is foundational to effective negotiations. The other options are not appropriate points at which to make this disclosure, as they may either come too late or suggest a lack of transparency in the transaction process.