Ontario Real Estate Licensing Exam Practice · Question
A buyer client, David, has instructed his salesperson, Emily, not to disclose certain structural issues he discovered after a home inspection on a property he's trying to resell in Ottawa. David explicitly states that revealing these issues would jeopardize the sale. What is Emily's ethical obligation in this situation?
A salesperson has a legal obligation under the Code of Ethics to declare all known material facts related to the transaction, even if it is contrary to the clie
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Question: A buyer client, David, has instructed his salesperson, Emily, not to disclose certain structural issues he discovered after a home inspection on a property he's trying to resell in Ottawa. David explicitly states that revealing these issues would jeopardize the sale. What is Emily's ethical obligation in this situation?
Answer options: ✅ Advise David that she must disclose all known material facts, even if it harms his position.
- Follow David's instructions, as her fiduciary duty is to act in his best interest.
- Disclose the structural issues only if specifically asked by a potential buyer.
- Terminate the representation agreement if David insists on non-disclosure.
Correct answer: Advise David that she must disclose all known material facts, even if it harms his position.
Explanation: A salesperson has a legal obligation under the Code of Ethics to declare all known material facts related to the transaction, even if it is contrary to the client's instructions or best interests.
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