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Salesperson Wallace sold a house to a buyer who had signed a buyer representation agreement with Wallace's brokerage. Wallace recommended a friend working at Lender

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Salesperson Wallace sold a house to a buyer who had signed a buyer representation agreement with Wallace's brokerage. Wallace recommended a friend working at Lender Inc. as a source for financing and a mortgage was arranged for the necessary amount. Lender Inc. subsequently sent Wallace's brokerage a referral fee for the mortgage. Shortly after closing, the buyer discovered that another lender was offering mortgage financing at one quarter of a percent lower than Lender Inc. Which of the following statements best describes Wallace's conduct? a There is no conflict of interest and the referral fee should have been paid directly to Wallace. b Wallace has no responsibility for assisting the buyers to get the best rate they can get. c Due to privacy issues, Wallace should not be involved in any way with the buyer's mortgage requirements. d By recommending a friend rather than assisting the buyer to obtain the best terms. Wallace may have violated the fiduciary duty of loyalty. Courts hold real estate salespeople to a standard described as a "duty of care". If a salesperson is being sued by an unhappy buyer who purchased a business the salesperson had listed, which of the following statements describes an argument the court may give weight to in determining the salesperson did not violate the duty of care? a "I just got my registration as a salesperson two weeks poor to this transaction." b "I advised the buyer in writing to get legal advice before signing the offer." c "I had never sold that type of property before." d "The buyer did not ask to see the financial statements." According to the provisions of the Code of Ethics of the Real Estate and Business Brokers Act, 2002, certain information must be contained in a listing agreement. Which of the following is part of that mandatory information? i. The date on which the agreement takes effect and the date on which it expires. ii. The method for determining the amount of any commission payable to the brokerage. iii. The amount of commission payable to a co-operating brokerage involved in a sale of the property. iv. The services that the brokerage will provide under the agreement. a Only statements i. and ii. are correct. b Only statement i. is correct. c All four statements are correct. d Only statements iii. and iv. are correct

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