Humber/Ontario Real Estate Course 2 Exam Practice

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Prepare for the Ontario Real Estate Exam with our comprehensive Humber Course 2 Exam Practice quiz. Engage with multiple choice questions and detailed explanations, designed to help you excel.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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If a buyer's representative has prepared an offer with conditions and the seller asks questions about the conditions and tax implications, how should the representative respond?

Address all the seller's questions to aid negotiations for his client.
Recommend the seller obtains representation from a real estate brokerage.
Only provide advice regarding the conditions, not tax matters.
Be candid with the seller but avoid implying an agency relationship.

The correct answer is: Be candid with the seller but avoid implying an agency relationship.

When a buyer's representative is preparing an offer with conditions and the seller asks questions about the conditions and tax implications, the representative should respond by being candid with the seller but avoid implying an agency relationship. This is the correct approach to maintain ethical standards and avoid any potential conflicts of interest that may arise. It is important for the buyer's representative to provide accurate information and guidance to the seller while making it clear that their primary duty is towards their own client, the buyer. By being transparent and professional in their communication, the representative can ensure that all parties involved are informed and protected in the transaction. Option A is not the best choice because the buyer's representative should prioritize the interests of their client, the buyer, over aiding negotiations for the seller. Option B may not be necessary if the buyer's representative can address the seller's questions appropriately. Option C is not entirely correct as the buyer's representative may need to provide some general advice on tax matters related to the conditions in the offer. However, the primary focus should be on the conditions themselves, not tax implications. Therefore, option D is the most suitable response in this scenario as it ensures transparency and professionalism in the communication between the buyer's representative and the seller.