Humber/Ontario Real Estate Course 2 Exam Practice

Which of the following tasks are required of a salesperson to ensure compliance with the code of ethics during an offer presentation?

1. Verifying the identity of all parties involved in the transaction.

2. Securing a written and signed representation agreement before presenting an offer.

3. Confirming the earnest money deposit prior to presenting the offer.

4. Reviewing the buyer's financial status with the seller.

5. Notifying the brokerage's managing broker of the offer details.

6. Making a preliminary assessment of the buyer's agreement.

The correct answer is: Securing a written and signed representation agreement before presenting an offer.

Securing a written and signed representation agreement before presenting an offer is necessary to ensure compliance with the code of ethics during an offer presentation because having a signed representation agreement establishes the relationship between the salesperson and their client, outlining the duties and obligations of both parties. This agreement helps protect the interests of all parties involved and ensures that the salesperson is acting within the ethical guidelines of the real estate profession. Verifying the identity of all parties involved in the transaction, confirming the earnest money deposit, notifying the brokerage's managing broker of the offer details, and making a preliminary assessment of the buyer's agreement are also important tasks in a real estate transaction, but they are not specifically related to ensuring compliance with the code of ethics during an offer presentation. Reviewing the buyer's financial status with the seller is generally not considered ethical as it can breach confidentiality and privacy boundaries unless all parties involved have consented to such disclosure.