Humber/Ontario Real Estate Course 3 Exam Practice

If a salesperson represents a buyer and the seller is without representation, what should the salesperson do when asked about contract conditions and tax implications?

1. Fully address the seller's questions to move negotiations forward

2. Insist the seller obtains brokerage representation

3. Discuss conditions but not tax matters

4. Assist without implying an agency relationship

The correct answer is: Assist without implying an agency relationship

When a salesperson represents a buyer and the seller is without representation, it is crucial for the salesperson to act ethically and within the bounds of the law. By choosing option D, "Assist without implying an agency relationship," the salesperson maintains a neutral position and avoids giving the impression of representing the seller. This approach allows the salesperson to provide general assistance, answer basic questions, and facilitate communication between the parties without overstepping ethical boundaries or creating unintended agency relationships. In contrast, options A and B would involve the salesperson taking actions that could potentially lead to ethical conflicts. Fully addressing the seller's questions to move negotiations forward (Option A) may create a perception of representation or bias towards the seller, while insisting the seller obtains brokerage representation (Option B) disregards the seller's autonomy and right to choose whether or not to seek representation. Option C, discussing conditions but not tax matters, is not the most appropriate course of action in this scenario. While discussing conditions is acceptable, neglecting to address tax implications can leave the parties uninformed about critical financial aspects of the transaction. Therefore, option D is the most suitable choice as it allows the salesperson to provide assistance while maintaining a neutral stance and avoiding the implication of