Humber/Ontario Real Estate Course 2 Exam Practice

In the context of real estate, which action should a broker prioritize when a client decides to waive all conditions to ensure a more appealing offer?

1. Encouraging the buyer to offer significantly above the list price

2. Advising the client to proceed with a thorough home inspection

3. Discussing the potential high risk and benefits of waiving conditions

4. Recommending to waive conditions only if the inspection report is negative

5. Suggesting to include at least one conditional clause

6. Amending the offer with a flexible condition clause

The correct answer is: Discussing the potential high risk and benefits of waiving conditions

When a client decides to waive all conditions to make their offer more attractive, it is crucial for a broker to prioritize discussing the potential risks and benefits of this decision. By having a candid conversation with the client about the implications of waiving conditions, the broker can ensure that the client fully understands the consequences of their choice. This transparency helps the client make an informed decision that aligns with their best interests. Options A, B, D, and E do not address the core priority of discussing the risks and benefits of waiving conditions. Offering significantly above the list price (Option A) and advising a thorough home inspection (Option B) may not be the most relevant actions in this scenario. Recommending to waive conditions only if the inspection report is negative (Option D) and suggesting to include at least one conditional clause (Option E) do not directly tackle the crucial conversation needed to educate the client on the implications of their decision. Option F, suggesting to include at least one conditional clause, is a consideration that could provide some protection for the client, but it does not address the primary action of discussing the risks and benefits of waiving conditions.