Humber/Ontario Real Estate Course 2 Exam Practice

When dealing with a conflict of interest in a real estate transaction, a salesperson should:

1. Disclose the conflict to all parties involved

2. Wait until the transaction is complete before addressing the conflict

3. Ignore the conflict if it benefits their client

4. Let their brokerage handle the conflict without disclosing it

5. Withdraw from representing any party

6. Disclose the conflict only to the Real Estate Council

The correct answer is: Disclose the conflict to all parties involved

When dealing with a conflict of interest in a real estate transaction, it is crucial for a salesperson to disclose the conflict to all parties involved (Choice A). Full disclosure helps maintain transparency and ensures that all parties are informed about any potential conflicts that may arise during the transaction. This act of transparency helps build trust with clients and demonstrates professionalism in handling conflicts of interest. Ignoring the conflict if it benefits the client (Choice C) is unethical and could result in legal repercussions. Waiting until the transaction is complete before addressing the conflict (Choice B) may lead to complications, misunderstandings, and could harm the reputation of the salesperson. Letting the brokerage handle the conflict without disclosing it (Choice D) goes against the principle of transparency and may not fully resolve the conflict in the best interest of all parties involved. Withdrawing from representing any party (Choice E) may be necessary in some cases where the conflict cannot be resolved effectively. However, the ideal first step is to disclose the conflict to all parties involved and work towards a resolution while maintaining transparency and professionalism. Disclosing the conflict only to the Real Estate Council (Choice F) may not be sufficient, as all parties directly involved in the transaction should be informed to ensure transparency and ethical conduct.