A sales representative is representing a seller and receives multiple offers on a property. One of the offers includes a condition requiring the seller to lease back the property for six months after closing, a detail the seller finds highly inconvenient but has not yet explicitly rejected. When presenting the offers, what ethical obligation does the sales representative have regarding this condition?

Question: A sales representative is representing a seller and receives multiple offers on a property. One of the offers includes a condition requiring the seller to lease back the property for six months after closing, a detail the seller finds highly inconvenient but has not yet explicitly rejected. When presenting the offers, what ethical obligation does the sales representative have regarding this condition?

Answer options:

• Present all offers without comment, allowing the seller to independently assess the lease-back condition.
• Highlight the disadvantage of the lease-back condition to the seller, subtly steering them towards offers without it.
• Privately advise the buyer's representative that their offer with the lease-back is unlikely to be accepted, encouraging a revision. ✅ Present the offer objectively, explaining the implications and options regarding the lease-back condition, ensuring the seller makes an informed decision.

Correct answer: Present the offer objectively, explaining the implications and options regarding the lease-back condition, ensuring the seller makes an informed decision.

Explanation: Registrants owe a duty of undivided loyalty to their client, which includes providing competent and conscientious service. Section 8 of O. Reg. 580/05 (Code of Ethics) states that a registrant shall not withhold any offer, and must present all offers objectively, explaining the pros and cons to allow their client to make an informed decision.