Sarah, a real estate associate with 'Prairie Homes Realty' in Calgary, is representing a seller, Mr. Henderson, for his property in Chestermere. During a showing, a potential buyer, Ms. Chan, mentions to Sarah that she is willing to pay an additional $15,000 over the asking price if the sellers can close quickly, as she's very eager to move. Ms. Chan also mentions she has had trouble securing financing in the past. What is Sarah's primary obligation regarding this information?

Question: Sarah, a real estate associate with 'Prairie Homes Realty' in Calgary, is representing a seller, Mr. Henderson, for his property in Chestermere. During a showing, a potential buyer, Ms. Chan, mentions to Sarah that she is willing to pay an additional $15,000 over the asking price if the sellers can close quickly, as she's very eager to move. Ms. Chan also mentions she has had trouble securing financing in the past. What is Sarah's primary obligation regarding this information?

Answer options: ✅ To immediately disclose Ms. Chan's willingness to pay more and her financing history to her client, Mr. Henderson.

• To advise Ms. Chan that she should keep her financial details confidential from the seller.
• To disclose the information to her broker to determine the best course of action.
• To keep Ms. Chan's financial information confidential as she is a customer, not a client.

Correct answer: To immediately disclose Ms. Chan's willingness to pay more and her financing history to her client, Mr. Henderson.

Explanation: Under the RECA Rules and the principle of honesty and fair dealing, a real estate associate owes a duty of full disclosure of all material facts to their client. The buyer's willingness to pay more and their financing history are material facts that could impact the seller's decision-making.