A salesperson receives an offer on a property they have listed. Simultaneously, they receive an inquiry from another potential buyer who expresses strong interest and indicates they are prepared to make a higher offer. The salesperson, eager to secure a quick closing, does not inform the seller about the second potential buyer before presenting the first offer. Which Code of Ethics principle is violated?

Question: A salesperson receives an offer on a property they have listed. Simultaneously, they receive an inquiry from another potential buyer who expresses strong interest and indicates they are prepared to make a higher offer. The salesperson, eager to secure a quick closing, does not inform the seller about the second potential buyer before presenting the first offer. Which Code of Ethics principle is violated?

Answer options: ✅ The duty to act in the best interests of the client.

• The obligation to avoid conflicts of interest.
• The requirement to maintain confidentiality.
• The duty to be competent in service delivery.

Correct answer: The duty to act in the best interests of the client.

Explanation: Section 4 (3) of the Code of Ethics (O. Reg. 580/05, now TRESA) states that a registrant who represents a seller shall submit all offers received to the seller. Failing to inform the seller about a potential higher offer is a breach of the duty to act in the best interests of the client.