An unrepresented buyer, Mr. Smith, views a property in Red Deer listed by Maya, a real estate associate. Mr. Smith informs Maya that he will make an offer but asks Maya to recommend a purchase price that she thinks the seller will accept, stating, 'You're the expert.' How should Maya respond?

Question: An unrepresented buyer, Mr. Smith, views a property in Red Deer listed by Maya, a real estate associate. Mr. Smith informs Maya that he will make an offer but asks Maya to recommend a purchase price that she thinks the seller will accept, stating, 'You're the expert.' How should Maya respond?

Answer options:

• Maya should advise Mr. Smith on a competitive offer price, as she has market knowledge. ✅ Maya should tell Mr. Smith that as the seller's agent, she cannot provide advice to him and that he should consult his own agent or other appropriate professionals.
• Maya should inform Mr. Smith that she can only disclose the seller's asking price.
• Maya should suggest a price range, advising that any final decision is Mr. Smith's.

Correct answer: Maya should tell Mr. Smith that as the seller's agent, she cannot provide advice to him and that he should consult his own agent or other appropriate professionals.

Explanation: As the seller's agent, Maya owes fiduciary duties solely to her seller client. Providing advice on an offer price to an unrepresented buyer would constitute acting outside her authority and a breach of her duty to her client, possibly creating an unintended agency relationship or a conflict of interest. She must direct the customer to seek independent advice.