Humber/Ontario Real Estate Course 4 Exam Practice

What REBBA Code of Ethics violation occurred if a salesperson discloses to a buyer customer the lowest price a private seller would accept?

1. Creating a multiple representation situation

2. Failure to meet fiduciary obligations to the seller

3. Fulfilling fiduciary obligations to the buyer

4. Having violated no ethical boundaries

5. Ignoring customer's best interest

6. Overriding seller's final decision

The correct answer is: Failure to meet fiduciary obligations to the seller

The correct answer highlights that a violation occurs when the salesperson discloses the lowest price a private seller would accept to a buyer customer, which directly breaches the fiduciary obligations owed to the seller. In real estate, salespersons are tasked with acting in the best interest of their clients, which often includes maintaining confidentiality regarding sensitive information such as pricing. By revealing the seller's lowest acceptable price, the salesperson not only undermines the seller’s negotiating position but also jeopardizes the trust that underpins the fiduciary relationship. This action could lead to a financial disadvantage for the seller, as it may influence the buyer's offer strategy, showcasing a clear failure in the duty to protect the client's interests. The other options do not accurately capture the essence of this situation. For instance, creating a multiple representation situation involves representing both the buyer and seller, which was not indicated in this scenario. A claim of fulfilling fiduciary obligations to the buyer does not stand, as the salesperson's actions directly contravene their responsibilities to the seller. Ignoring the customer's best interest or overriding the seller's final decision may seem relevant, but they do not encapsulate the fundamental breach of the fiduciary duty involved in unauthorized disclosure of confidential information. Lastly, claiming no violation overlooks the