Humber/Ontario Real Estate Course 2 Exam Practice

If a salesperson ensures that "just another house" will be constructed on a neighboring lot, what is the breach?

1. The seller is responsible for providing future development information.

2. The salesperson has breached the obligation of a duty of care to a customer.

3. There is no breach as the buyer is a customer, not a client.

4. It is the seller's duty to disclose this information and not the responsibility of either salesperson.

5. The buyer must independently verify future construction plans.

6. The salesperson has no obligation to inquire since it is a buyer customer, not a client.

The correct answer is: The salesperson has breached the obligation of a duty of care to a customer.

In this scenario, choice B is the correct answer because the salesperson has breached the duty of care to the customer by stating that "just another house" will be constructed on a neighboring lot. As a real estate professional, it is crucial to provide accurate information and act in the best interest of the customer. By downplaying the impact of a potential development, the salesperson is not fulfilling their duty of care, which includes providing honest and complete information to help the customer make informed decisions. This breach disregards the obligation to act with skill, care, and diligence in the real estate transaction, ultimately compromising the customer's trust and potentially causing harm.