Sarah, a real estate salesperson registered with RECO, is representing a buyer interested in purchasing a commercial property in Toronto. During the negotiation process, Sarah discovers that the seller is highly motivated to sell due to financial difficulties, a fact not shared by the seller's agent. Which of the following is Sarah's most appropriate action regarding this discovery?

Question: Sarah, a real estate salesperson registered with RECO, is representing a buyer interested in purchasing a commercial property in Toronto. During the negotiation process, Sarah discovers that the seller is highly motivated to sell due to financial difficulties, a fact not shared by the seller's agent. Which of the following is Sarah's most appropriate action regarding this discovery?

Answer options:

• Sarah must maintain the confidentiality of this information as it pertains to the seller's personal circumstances and use it only to benefit her client, the buyer.
• Sarah must immediately inform the seller's agent that she is aware of the seller's financial difficulties. ✅ Sarah must disclose this information to her buyer client, as it could impact the negotiation strategy.
• Sarah must advise her buyer client to make a low-ball offer, leveraging the seller's financial stress.

Correct answer: Sarah must disclose this information to her buyer client, as it could impact the negotiation strategy.

Explanation: Registrants have a duty to promote their client's best interests, which includes disclosing all material facts about a property or a party that come to their knowledge. The seller's motivation is a material fact. The Code of Ethics under TRESA emphasizes acting in the best interests of the client.