Humber/Ontario Real Estate Course 2 Exam Practice

When must a real estate agent disclose a conflict of interest to their client?

1. Only after a formal complaint is filed.

2. At the final stage of negotiation.

3. Immediately when the conflict of interest is known.

4. After the transaction has closed.

5. During the initial consultation.

6. Only if it materially affects the transaction.

The correct answer is: Immediately when the conflict of interest is known.

A real estate agent must disclose a conflict of interest to their client immediately when the conflict of interest is known. This is important to maintain transparency and trust in the client-agent relationship. Disclosing the conflict of interest allows the client to make informed decisions and understand any potential impacts on the transaction. Waiting until a formal complaint is filed, at the final stage of negotiation, after the transaction has closed, or only if it materially affects the transaction may not provide the client with sufficient information or opportunity to address the conflict appropriately. Additionally, disclosing during the initial consultation may not be necessary unless the conflict of interest is already known at that time.