Humber/Ontario Real Estate Course 3 Exam Practice

What would be the consequence for a salesperson incorrectly promising approval for a patio modification in a condo common area?

1. The buyer should take full responsibility for verifying the possibility.

2. The salesperson would not face any legal or disciplinary action from RECO.

3. The salesperson violated the REBBA Code of Ethics by making an inaccurate representation.

4. RECO would not pursue the case since legal action is already taken by the buyer.

The correct answer is: The salesperson violated the REBBA Code of Ethics by making an inaccurate representation.

The correct answer reflects that by making an inaccurate representation regarding the approval of a patio modification in a condo common area, the salesperson has violated the Real Estate and Business Brokers Act (REBBA) Code of Ethics. This code emphasizes the importance of honesty, integrity, and professionalism in the real estate industry. When a salesperson promises approval without having the authority or knowledge to do so, it misleads the buyer and undermines the trust that is essential in real estate transactions. Such misrepresentation can lead not only to potential legal consequences but also to disciplinary action by regulatory bodies like the Real Estate Council of Ontario (RECO). The other options do not adequately address the implications of making such a promise. They suggest either that the responsibility would fall solely on the buyer or downplay the salesperson's accountability. However, ethical responsibility lies with the salesperson to provide accurate and truthful information, which is clearly outlined in the REBBA Code of Ethics.