Humber/Ontario Real Estate Course 4 Exam Practice

What should a salesperson do if a prospective buyer asks whether the seller will accept a lower price?

1. Provide information that assists the buyer about the seller's negotiating position.

2. Disclose the brokerage's role regarding the seller client and buyer customer, and inform the buyer that such information is confidential.

3. Share such information only if the buyer is serious about buying the property.

4. Attempt to gather more details from the seller to assist the buyer.

5. Advise the buyer to make a low offer and see what happens.

6. Disclose all information about previous offers to the buyer.

The correct answer is: Disclose the brokerage's role regarding the seller client and buyer customer, and inform the buyer that such information is confidential.

When a prospective buyer inquires about whether the seller will accept a lower price, the most appropriate response is to disclose the brokerage's role regarding the seller as a client and the buyer as a customer, while emphasizing that this information is confidential. This response is built on the ethical obligation of real estate professionals to maintain confidentiality regarding their client's negotiation position. In real estate transactions, the information regarding a seller's willingness to negotiate or accept a lower price is sensitive and typically falls under client confidentiality. By informing the buyer about this confidentiality, the salesperson reinforces the importance of respecting the seller's privacy and confirms that they are acting in the seller's best interest. This not only aligns with legal obligations but also fosters trust in the professional relationship. In performing this duty, the salesperson also clarifies the roles within the transaction, ensuring that both parties understand their standing in the negotiation process. This preserves the integrity of the transaction while managing expectations on the part of the buyer. This choice effectively balances the salesperson’s responsibility towards their client—the seller—while providing a professional and ethical framework for the interaction. Other options may either compromise confidentiality, incorrectly disclose sensitive information, or encourage unprofessional negotiation tactics, which would not be in line with ethical selling practices.