Pierre, a real estate broker, is negotiating on behalf of his buyer client, Caroline, for a property in Gatineau. Pierre learns that the seller is highly motivated to sell quickly due to an impending relocation and would accept a lower offer than listed. What is Pierre's ethical duty in this situation?

Question: Pierre, a real estate broker, is negotiating on behalf of his buyer client, Caroline, for a property in Gatineau. Pierre learns that the seller is highly motivated to sell quickly due to an impending relocation and would accept a lower offer than listed. What is Pierre's ethical duty in this situation?

Answer options: ✅ Pierre must immediately inform Caroline of the seller's motivation to allow her to formulate a more strategic offer.

• Pierre should use this information to negotiate the best possible price for Caroline, without explicitly revealing the seller's distress.
• Pierre is obligated to keep this information confidential as it was gathered during negotiations and could jeopardize the transaction.
• Pierre must verify the truthfulness of the seller's motivation before acting on the information, to avoid misrepresentation.

Correct answer: Pierre must immediately inform Caroline of the seller's motivation to allow her to formulate a more strategic offer.

Explanation: According to Article 3.3 of the Rules of professional conduct of brokers, a broker must act in the best interests of the party they represent and inform the party of any information that could assist them in making an informed decision. The seller's motivation to sell quickly is crucial information for a buyer.