Alberta Real Estate Licensing Exam Practice · Question
An unrepresented buyer, Mr. Chen, is interested in a property listed by ABC Realty, where Maria is a licensed associate. Mr. Chen asks Maria for advice on structuring his offer and negotiating a lower price with her seller client. What is Maria's ethical obligation in this situation according to RECA's Rules?
RECA Rules require licensees to act in the best interests of their client. Providing advice to an unrepresented party about structuring an offer or negotiating
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Question: An unrepresented buyer, Mr. Chen, is interested in a property listed by ABC Realty, where Maria is a licensed associate. Mr. Chen asks Maria for advice on structuring his offer and negotiating a lower price with her seller client. What is Maria's ethical obligation in this situation according to RECA's Rules?
Answer options: ✅ Maria must advise Mr. Chen that she cannot provide him with advice as she represents the seller, and recommend he seek independent representation or legal counsel.
- Maria can provide Mr. Chen with general advice on the offer process, but not specific negotiation strategies.
- Maria should assist Mr. Chen as best as she can, as she has a duty to treat all parties fairly.
- Maria must refuse to present any offer from Mr. Chen if he is unwilling to engage his own agent.
Correct answer: Maria must advise Mr. Chen that she cannot provide him with advice as she represents the seller, and recommend he seek independent representation or legal counsel.
Explanation: RECA Rules require licensees to act in the best interests of their client. Providing advice to an unrepresented party about structuring an offer or negotiating against her own client would be a conflict of interest, and Maria must advise Mr. Chen to seek independent representation.
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