Humber/Ontario Real Estate Course 2 Exam Practice

What must a salesperson do if a buyer customer inquires about the seller's financial status?

1. Consult the broker for advice on what to disclose.

2. Keep any financial pressure details confidential unless authorized.

3. Share limited information to benefit the buyer’s offer.

4. Refer the buyer to an external financial advisor.

5. Provide generic information regarding financial health.

6. Encourage the buyer to contact the listing agent directly.

The correct answer is: Keep any financial pressure details confidential unless authorized.

When a buyer customer inquires about the seller's financial status, it is essential for the salesperson to maintain confidentiality regarding any financial pressures the seller may have unless specifically authorized to disclose such information. This is in line with the duty of confidentiality that real estate professionals owe to their clients. Disclosing sensitive financial information without authorization could harm the seller's negotiating position and put the salesperson at risk of legal and ethical implications. Option A suggests consulting the broker for advice on what to disclose, which may not always be necessary and could potentially lead to breaching confidentiality if the broker advises to disclose more than what is appropriate. Option C and E imply sharing information that could be detrimental to the seller and unethical. Option D suggests referring the buyer to an external financial advisor, which is not typically the role of a real estate salesperson in this context. Option F is not the correct approach either, as the buyer should ideally go through their agent to communicate with the listing agent, rather than bypassing the agents involved in the transaction. Therefore, maintaining confidentiality about the seller's financial status unless authorized is the most appropriate and ethical course of action for a salesperson in this situation.