Humber/Ontario Real Estate Course 3 Exam Practice

Which of the following statements is correct about qualifying questions when dealing with a potential buyer?

1. Asking a buyer client if he or she has already been pre-approved for a mortgage is not permitted under privacy legislation.

2. Asking questions to determine if there are certain 'musts' when selecting the right home; e.g., close proximity to public transit.

3. Lifestyle questions don't have much relevance to the home buying process.

4. Questions regarding another brokerage shouldn't be asked as they could interfere with an existing relationship.

5. It's unnecessary to inquire about lifestyle preferences.

6. Buyers should be asked only about their financial situation.

The correct answer is: Questions regarding another brokerage shouldn't be asked as they could interfere with an existing relationship.

Asking questions regarding another brokerage is crucial because it helps to respect existing business relationships and avoids potential conflicts of interest. In the context of real estate, understanding a potential buyer’s current dealings with other brokerages is important for maintaining professionalism and ethical conduct. By refraining from this line of inquiry, agents uphold the integrity of the industry and protect the interests of their clients. This approach not only showcases a commitment to ethical standards but also fosters trust between the buyer and the agent. Ensuring that a client feels secure in their relationship allows for open communication, which is essential in the home-buying process. Maintaining boundaries in discussions about other brokerages helps to avoid any perception of pressure or conflict, ensuring that the focus remains on the needs and preferences of the potential buyer without external distractions.