Humber/Ontario Real Estate Course 2 Exam Practice

Regarding a salesperson's duties to a client or customer, which statement is correct?

1. Extent of the duty of care varies between clients and customers.

2. Both clients and customers are owed fiduciary duties.

3. Clients are owed competent and diligent service but not customers.

4. Salespersons are not obligated to disclose known material facts to customers.

5. Each client and customer should be treated with impartial service.

6. Salespersons owe the same level of duty to all clients and customers.

The correct answer is: Extent of the duty of care varies between clients and customers.

The correct answer is A. The extent of the duty of care varies between clients and customers because salespersons owe a higher duty of care, known as fiduciary duties, to clients compared to customers. This is due to the fiduciary relationship established with clients, which includes obligations such as loyalty, confidentiality, disclosure, obedience, accounting, and reasonable care and skill. Options B, C, D, E, and F are incorrect because they do not accurately reflect the distinction in the level of duty of care between clients and customers. Clients are owed fiduciary duties, including competent and diligent service, while customers are owed a lesser duty of care, such as honesty, fairness, and integrity in dealing with them. It is important for salespersons to understand and fulfill their obligations to both clients and customers appropriately based on the nature of their relationships.