Humber/Ontario Real Estate Course 2 Exam Practice

What violation of REBBA Code of Ethics occurred if a salesperson reveals that the seller will accept a lower price to a customer?

1. Creation of a multiple representation situation by having the buyer sign a customer service agreement

2. Fulfilling fiduciary obligations to the customer

3. No violation occurred

4. Violation of the fiduciary duties to the sellers

5. Withholding critical information from the seller

6. Providing specific performance guarantees

The correct answer is: Violation of the fiduciary duties to the sellers

The correct answer is "Violation of the fiduciary duties to the sellers." In this scenario, if a salesperson reveals to a customer that the seller is willing to accept a lower price, it breaches the fiduciary duty of loyalty and confidentiality owed to the seller. This disclosure could potentially harm the seller's negotiation position and goes against the obligation to act in the best interest of the seller. The other options are incorrect for the following reasons: - Option A ("Creation of a multiple representation situation by having the buyer sign a customer service agreement") involves a different issue related to potential conflict of interest when representing multiple parties in a transaction. - Option B ("Fulfilling fiduciary obligations to the customer") is incorrect because in this scenario, the fiduciary duty in question is to the seller, not the customer. - Option C ("No violation occurred") is inaccurate as revealing the seller's willingness to accept a lower price without authorization is a violation of fiduciary duties. - Option E ("Withholding critical information from the seller") is not applicable as the scenario involves the disclosure of information, not withholding it. - Option F ("Providing specific performance guarantees") is unrelated to the situation described in the question.