Humber/Ontario Real Estate Course 4 Exam Practice

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What can be concluded if a salesperson assures a buyer that only another house will be built on an adjacent vacant lot without verification?

  1. The salesperson has breached the duty of care

  2. The salesperson acted properly without verifying

  3. The seller must disclose such information

  4. The buyer should investigate independently

The correct answer is: The salesperson has breached the duty of care

A salesperson who assures a buyer that only another house will be built on an adjacent vacant lot without verification may be considered to have breached the duty of care. This duty requires the salesperson to provide accurate and reliable information to clients based on reasonable inquiry and verification. By making such an assurance without investigation, the salesperson is potentially misleading the buyer, which can lead to claims of negligence if it turns out that the information is incorrect. This situation highlights the importance of due diligence in real estate transactions. Salespeople are expected to act in the best interest of their clients, which includes verifying claims made about property developments or changes in zoning regulations before conveying this information. Failure to do this not only undermines the trust between the client and the salesperson but can also expose the salesperson to legal repercussions if the buyer relies on that incorrect information in making a purchase decision. The other options do not fully address the issue of responsibility and accountability when providing information to buyers.