Humber/Ontario Real Estate Course 4 Exam Practice

When handling multiple offers, which action should a listing salesperson take?

1. Notify buyers of the highest offer amount.

2. Inform buyers about the number of competing offers.

3. Present only verbal offers to the seller.

4. Provide details of each offer to all buyers.

5. Accept only the highest monetary offer.

6. Require buyers to waive all conditions in offers.

The correct answer is: Inform buyers about the number of competing offers.

The correct choice highlights the importance of transparency in the multiple offers process. Informing buyers about the number of competing offers is essential because it allows them to understand the level of competition they are facing. This knowledge can motivate buyers to strengthen their own offers, potentially by increasing their bid price or improving terms, such as fewer contingencies. Additionally, this approach maintains fairness and ethical standards in the real estate transaction, ensuring that all parties have equal access to pertinent information that could influence their decisions. It helps build trust in the process, allowing buyers to feel more confident that they are engaging in a competitive yet honest bidding environment. This method does not imply disclosing specific offer amounts or details, which could lead to issues with confidentiality and privacy. As such, the choice to inform buyers about the number of offers keeps the process clear and professional without crossing ethical lines that might arise from sharing too much information about competing bids.