A real estate salesperson is representing a buyer in the purchase of a commercial property. The salesperson becomes aware of a pending zoning change that could significantly increase the property's value after the purchase. Which action is most consistent with the salesperson's obligations under the Code of Ethics?

Question: A real estate salesperson is representing a buyer in the purchase of a commercial property. The salesperson becomes aware of a pending zoning change that could significantly increase the property's value after the purchase. Which action is most consistent with the salesperson's obligations under the Code of Ethics?

Answer options: ✅ Immediately inform the client of the pending zoning change and its potential impact.

• Refrain from disclosing the zoning change as it is public information the client could find themselves.
• Advise the client to complete the purchase quickly before the information becomes widely known.
• Suggest the client delay the purchase to allow the salesperson to potentially invest in the property first.

Correct answer: Immediately inform the client of the pending zoning change and its potential impact.

Explanation: Registrants have a duty to disclose all material facts known to them regarding a trade in real estate to their clients, and this includes any information that could affect the value or desirability of a property. This is stipulated in Section 3 of the Code of Ethics (O. Reg. 580/05).