Humber/Ontario Real Estate Course 2 Exam Practice

Salesperson Kim meets with a potential buyer deciding between client or customer representation. Which of the following is accurate?

1. Customers aren't owed fiduciary duties, but clients are

2. Salesperson Kim must determine and disclose material facts about the property regardless of the buyer's status

3. Salesperson Kim must offer conscientious and competent service to the buyer as a client but only be honest and fair with a customer

4. If the buyer knowingly decides to be a customer, that buyer can be confident that any negotiating strategy divulged to Salesperson Kim would not be shared with Kim's seller client

The correct answer is: If the buyer knowingly decides to be a customer, that buyer can be confident that any negotiating strategy divulged to Salesperson Kim would not be shared with Kim's seller client

Option D is correct because it highlights the importance of confidentiality in real estate relationships. When a potential buyer knowingly chooses to be a customer rather than a client, they can have confidence that any negotiating strategies they share with the salesperson will not be disclosed to the salesperson's seller client. This demonstrates that the salesperson will maintain confidentiality and not share sensitive information that could potentially impact negotiations or harm the customer's position. In comparison: - Option A is incorrect because both clients and customers are owed fiduciary duties, although these duties are more extensive for clients. - Option B is not the best choice because while it's true that salesperson Kim must disclose material facts about the property regardless of the buyer's status, this is not the most accurate statement in this scenario. - Option C is inaccurate because salesperson Kim should offer conscientious and competent service to both clients and customers, not just clients. The distinction lies in the extent of fiduciary duties owed to clients versus customers.