Humber/Ontario Real Estate Course 2 Exam Practice

A seller is in financial distress and wishes for a quick sale. He tells the salesperson that while the listing price is $499,500, he is willing to consider offers over $450,000 with a quick closing date. The listing salesperson:

1. Should notify any prospective buyers of the seller's comment to secure an acceptable offer.

2. Would breach confidentiality obligations if disclosing this information to potential buyers.

3. Can discuss this matter with a buyer actively considering and preparing an offer.

4. Can advertise: Listing price: $499,500, all offers above $450,000 considered.

5. Must amend the listing agreement to reflect the new lowest acceptable offer.

6. Can only share this information if authorized by the seller.

The correct answer is: Would breach confidentiality obligations if disclosing this information to potential buyers.

In this scenario, the correct answer is B because the salesperson would breach confidentiality obligations if disclosing the seller's willingness to consider offers over $450,000 with a quick closing date. It is essential for real estate professionals to maintain confidentiality and act in the best interests of their clients. Disclosing this information to potential buyers could potentially harm the seller's bargaining position and undermine the seller's financial goals. This emphasizes the importance of upholding confidentiality in real estate transactions to protect the interests of all parties involved. Options A, C, D, E, and F are incorrect: A. Should notify any prospective buyers of the seller's comment to secure an acceptable offer - This is not correct because it goes against the principle of maintaining confidentiality and could potentially harm the seller's position. C. Can discuss this matter with a buyer actively considering and preparing an offer - This is incorrect as discussing the seller's financial distress and willingness to accept offers below the listing price could influence the buyer's offer and breach confidentiality. D. Can advertise: Listing price: $499,500, all offers above $450,000 considered - This option may mislead potential buyers and is not in the best interest of the seller. E. Must amend the listing agreement to reflect the new lowest acceptable offer - There is no need to amend the listing agreement as the seller's willingness to accept offers over $450,000 with a quick closing date is a confidential matter. F. Can only share this information if authorized by the seller - While important to have seller authorization for some disclosures, in this case, the sensitive financial information should not be disclosed even with authorization.