Humber/Ontario Real Estate Course 2 Exam Practice

What should a salesperson do if a buyer indicates that financing is unlikely but doesn't want the seller informed?

1. Inform the seller immediately

2. Take a wait-and-see approach

3. Declare the offer null and void

4. Adhere to buyer’s confidentiality request

5. Negotiate a new agreement

6. Cancel the contract without informing the seller

The correct answer is: Inform the seller immediately

In this scenario, the correct course of action for a salesperson is to inform the seller immediately if a buyer indicates that financing is unlikely but does not want the seller informed. Transparency and honesty are crucial in real estate transactions, and keeping the seller informed of all relevant information is essential for maintaining trust and ensuring a fair and transparent process. By informing the seller promptly, the salesperson upholds their duty to act in the best interests of their client. Option B, taking a wait-and-see approach, may not be the best choice as it can lead to delays and uncertainty in the transaction, potentially causing issues for both the buyer and the seller. Option C, declaring the offer null and void, may not be necessary if the buyer simply indicated financing is unlikely but still wants to proceed without informing the seller. Option D, adhering to the buyer’s confidentiality request, may not be in the best interest of all parties involved as it could lead to misunderstandings and complications down the line. Option E, negotiating a new agreement, may not be appropriate if the buyer has not explicitly expressed a desire to change the terms of the agreement. Option F, canceling the contract without informing the seller, would not be ethical or professional conduct in this situation.