Humber/Ontario Real Estate Course 1 Exam Practice

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Humber Real Estate Course 1 Exam. Access our quiz with multiple choice questions and detailed explanations. Boost your readiness for the exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

If a salesperson is a minority shareholder in a company making an offer to buy property:

The salesperson need not disclose the interest unless asked by the seller.
No disclosure is needed as the salesperson doesn’t control the company.
Disclosure is only needed if the company is selling property.
The salesperson must disclose their personal interest to the seller.
It is necessary to disclose only if the interest exceeds 25%.
If the company is not directly managed by the salesperson, disclosure isn’t required.

The correct answer is: The salesperson must disclose their personal interest to the seller.

In real estate transactions, transparency and ethical conduct are paramount. When a salesperson holds a minority share in a company that is involved in purchasing property, it is crucial for them to disclose this interest to the seller. This requirement stems from the obligation to maintain trust and ensure that all parties are fully informed, as the salesperson’s financial interest in the outcome could create a conflict of interest. Failing to disclose such information could lead to perceptions of impropriety or unfair advantage, which can undermine the integrity of the transaction. Thus, by disclosing the personal interest, the salesperson respects the seller's right to be aware of any potential conflicts that could influence decision-making. This principle is rooted in ethical real estate practice and is designed to protect all parties involved in the transaction.