A buyer's salesperson is reviewing an Agreement of Purchase and Sale with their client. The agreement contains a clause that is unusually complex and includes legal jargon that the client does not fully understand. The salesperson provides their own interpretation of the clause to the buyer to clarify it. What is the appropriate ethical action for the salesperson?

Question: A buyer's salesperson is reviewing an Agreement of Purchase and Sale with their client. The agreement contains a clause that is unusually complex and includes legal jargon that the client does not fully understand. The salesperson provides their own interpretation of the clause to the buyer to clarify it. What is the appropriate ethical action for the salesperson?

Answer options: ✅ Advise the client to seek independent legal advice regarding the clause.

• Provide their own interpretation, as they have experience with similar clauses.
• Suggest the client simply sign the agreement, trusting the salesperson's judgment.
• Modify the clause themselves to make it easier for the client to understand.

Correct answer: Advise the client to seek independent legal advice regarding the clause.

Explanation: Section 28 (1) of the Code of Ethics (O. Reg. 580/05, now TRESA) states that a registrant shall advise a client to seek independent professional advice if the registrant is not able to provide the advice or service themselves. Interpreting complex legal clauses falls outside the scope of real estate professional advice.