Ethics in Practice Practice Questions

Question 1 of 5

Salesperson Carlos is representing the seller in a transaction. The buyer's agent, Monica, sends an email with an aggressive tone, accusing Carlos of withholding information about the property and threatening to report him to RECO. Carlos believes the accusation is unfounded. How should Carlos respond?

• ATake time to review the accusation calmly, gather relevant documentation showing proper disclosure, and respond professionally — addressing the specific concerns with facts, offering to discuss any remaining issues, and maintaining a respectful tone regardless of the provocation
• BRespond with an equally aggressive email defending himself and threatening counter-action real estate
• CIgnore the email entirely and hope the issue goes away
• DForward the email to the buyer directly, bypassing their agent, to explain the situation

Question 2 of 5

Salesperson Tina is representing the seller in a transaction that has gone firm (all conditions waived). Ten days before closing, the buyer's agent calls to say the buyer wants to back out because they found a 'better' property. The buyer has no legal basis to terminate. What should Tina advise her seller client?

• ALet the buyer walk away to avoid conflict and put the property back on the market
• BTell the seller to keep the buyer's deposit and move on, as the applicable regulatory framework and industry practices establish the standards and procedures that govern how this type of matter is addressed in Ontario real estate
• CInform the seller that a firm agreement is legally binding, advise them to consult with their lawyer about enforcing the agreement, discuss the options including insisting on closing, negotiating a mutual release with compensation, or pursuing a breach of contract claim — and let the seller make the decision based on legal advice
• DAgree to release the buyer without any compensation since maintaining a good industry reputation is more important real estate

Question 3 of 5

Client Marko has rented his condo through salesperson Dana. Six months into the lease, the tenant contacts Dana (not Marko) requesting repairs to a leaking bathroom faucet and a broken window latch. Dana tells the tenant to contact Marko directly since Dana's involvement ended when the lease was signed. Is Dana's response appropriate?

• AYes — the salesperson's obligations end when the lease is signed, as the negotiated lease terms address the key commercial considerations including rent escalation, operating expenses, improvement allowances, and permitted use restrictions
• BDana should arrange the repairs herself and bill Marko later, as the negotiated lease terms address the key commercial considerations including rent escalation, operating expenses, improvement allowances, and permitted use restrictions
• CDana should have forwarded the tenant's request to Marko promptly, as she is still obligated to act professionally; while ongoing property management may not be part of her duties, she should ensure the communication reaches the landlord and remind Marko of his maintenance obligations under the RTA
• DDana has no obligation to respond to the tenant at all — while dana may not have a legal obligation to manage the property, professional standards and the duty of care suggest she should not simply ignore a legitimate communication

Question 4 of 5

Salesperson Leo is helping buyer client Ayesha view a tenanted duplex. The listing agent has scheduled showings during normal business hours. One tenant, Malik, refuses to allow anyone into his unit. The listing agent says they will just use the landlord's key. What should Leo advise regarding proper showing protocol?

• ASupport the listing agent's plan to use the landlord's key since the property is for sale
• BTell Ayesha to skip viewing Malik's unit and just imagine what it looks like based on the floor plan real estate
• CSuggest the listing agent enter the unit while Malik is at work so he will not know real estate
• DRemind the listing agent that under the Residential Tenancies Act, the landlord must provide 24 hours' written notice before entering a tenant's unit, entry can only be between 8 a.m. and 8 p.m., and the notice must specify the date, time, and reason for entry; the tenant's refusal should be addressed through proper legal channels, not by forced entry

Question 5 of 5

Buyer client Felipe has purchased a duplex and discovered that the previous landlord provided the upper-unit tenant with a lease that includes an above-guideline rent increase of 8% per year for three years. The tenant signed the agreement willingly. Felipe asks salesperson Mina whether this clause is enforceable. What should Mina explain?

• AThe clause is enforceable for the first year but not after that, noting that clause is void from inception, not just after the first year
• BThe clause is enforceable because the tenant voluntarily signed it, based on standard commercial leasing practices that allocate costs, risks, and responsibilities between landlord and tenant according to the negotiated lease provisions
• CUnder the Residential Tenancies Act, any clause in a lease that provides for rent increases above the provincial guideline without Landlord and Tenant Board approval is void and unenforceable, regardless of whether the tenant agreed to it; Felipe can only increase rent by the annual guideline amount
• DFelipe should honour the clause since he inherited the lease, based on standard commercial leasing practices that allocate costs, risks, and responsibilities between landlord and tenant according to the negotiated lease provisions