Humber/Ontario Real Estate Course 3 Exam Practice

A salesperson showing a property next to a vacant lot predicts another house will be built there. This is an example of:

1. The salesperson failing to uphold the duty of care to the customer

2. The salesperson acting correctly, as there's no inquiry duty for a non-client buyer

3. It being the seller's duty to disclose future construction plans

4. The salesperson having no responsibility due to "buyer beware" principles

5. The buyer being wholly responsible for diligent inquiry

6. The salesperson maintaining full compliance with regulatory procedures

The correct answer is: The salesperson failing to uphold the duty of care to the customer

The situation described involves a salesperson making a prediction about future construction on a vacant lot. This scenario showcases the importance of the duty of care that a salesperson has towards their clients. When a professional provides information or makes predictions that could influence a buyer's decision, they have a responsibility to ensure that these statements are accurate and grounded in fact. If a prediction is made without sufficient basis, it could lead to misunderstandings, misplaced trust, or financial repercussions for the buyer. The other options reflect varying degrees of responsibility or misinterpretations of the role of a salesperson. For example, suggesting that the seller is responsible for disclosing future construction plans may overlook the salesperson's duty to provide accurate and reliable information. Additionally, implying that the buyer must solely rely on their due diligence overlooks the professional obligation of the salesperson to assist and guide them appropriately. The principles of "buyer beware" and complete compliance with regulatory procedures do not negate the ethical responsibility the salesperson has towards their clients. Overall, the pivotal aspect here is the expectation that salespersons provide accurate and reasonable predictions based on their knowledge and understanding of the market, thus upholding the duty of care to their customers effectively.