Alberta Real Estate Licensing Exam Practice · Question
A designated agent discovers a significant structural defect during a property showing that the seller, their client, had not disclosed. The seller insists the agent keep this information confidential and proceed with offers. Which fiduciary duty prevents the agent from complying with the seller's instruction?
The duty of honesty and full disclosure overrides confidentiality when material latent defects are known. An agent cannot knowingly misrepresent a property or w
Start free practice for Alberta Real Estate Licensing Exam Practice
400 questions · no signup required · 40 free questions per day
Question: A designated agent discovers a significant structural defect during a property showing that the seller, their client, had not disclosed. The seller insists the agent keep this information confidential and proceed with offers. Which fiduciary duty prevents the agent from complying with the seller's instruction?
Answer options:
- Confidentiality
- Obedience
- Loyalty ✅ Honesty and full disclosure
Correct answer: Honesty and full disclosure
Explanation: The duty of honesty and full disclosure overrides confidentiality when material latent defects are known. An agent cannot knowingly misrepresent a property or withhold material information that could influence a buyer’s decision, even if instructed by the seller, as per RECA Rules.
Start free practice for Alberta Real Estate Licensing Exam Practice
400 questions · no signup required · 40 free questions per day
More about Alberta Real Estate Licensing Exam Practice
Related Questions
- A buyer is purchasing a property for $550,000. They have secured a mortgage for $440,000. What is the Loan-to-
- Commission in Alberta is:
- A real estate associate, Sarah, is representing a buyer. While showing a property, the buyer expresses a stron
- An associate prepares a listing agreement for a seller. Which of the following is NOT typically required to be
- A brokerage receives a certified cheque for a $15,000 deposit on a residential property. Within how many busin
- A real estate associate, Maria, wants to purchase a property that her brokerage has listed. What is Maria's pr
More for Alberta Real Estate Licensing Exam Practice candidates
Study guides
FAQs
Question explanations
- A buyer is purchasing a property for $550,000. They have secured a mortgage for $440,000. What is the Loan-to-
- Commission in Alberta is:
- A real estate associate, Sarah, is representing a buyer. While showing a property, the buyer expresses a stron
- An associate prepares a listing agreement for a seller. Which of the following is NOT typically required to be
Ready to practice?
Free, no signup required. Build a wrong-question list as you go.
Start Free Alberta Real Estate Licensing Exam Practice Practice →Related courses
Other Canadian certifications candidates often prepare for alongside this one.