Humber/Ontario Real Estate Course 3 Exam Practice

If a salesperson stands to receive a bonus from a seller and is representing a buyer client, what must the salesperson do?

1. Disclose the bonus to the buyer client, since a client relationship exists.

2. Only disclose the fact that a bonus is being received but not the amount.

3. Not disclose the bonus to the buyer client because it doesn't conflict with interest.

4. Refuse the bonus under all circumstances due to conflict of interest.

The correct answer is: Disclose the bonus to the buyer client, since a client relationship exists.

If a salesperson stands to receive a bonus from a seller while representing a buyer client, it is crucial for the salesperson to disclose the existence of the bonus to the buyer client. This is because a client relationship exists between the salesperson and the buyer client, and transparency is essential in this situation. By disclosing the bonus to the buyer client, the salesperson is being honest and ensuring that the client is aware of all relevant information that may influence their decisions. This transparency helps in maintaining the trust of the client and upholding ethical standards in real estate transactions. Option B is not the correct choice because simply disclosing the fact that a bonus is being received without specifying the amount may not provide the buyer client with sufficient information to understand the potential impact on the transaction. Option C is incorrect as it is not advisable for the salesperson to withhold information about the bonus from the buyer client, even if they believe it does not conflict with the client's interest. Full disclosure is essential in real estate transactions to avoid any conflicts of interest and maintain transparency. Option D is also not the correct choice because refusing the bonus under all circumstances may not be necessary if the salesperson can handle the situation appropriately by disclosing the bonus to the buyer client. Refusing the bonus