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Saskatchewan Real Estate Salesperson Exam study materials
Saskatchewan Real Estate Salesperson Exam study resources

Saskatchewan Real Estate Salesperson Exam practice questions

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Question 1Real Estate as a Professional Career

In Saskatchewan, which body administers the licensing of real estate salespersons and enforces the provincial real estate Act and regulations?

  1. The Saskatchewan Apprenticeship and Trade Certification Commission
  2. The Saskatchewan Association of Realtors
  3. The Financial and Consumer Affairs Authority of Saskatchewan
  4. The Saskatchewan Real Estate Commission Correct answer.

Explanation

The Saskatchewan Real Estate Commission is the industry regulator that licenses salespersons, brokers and property managers and administers the provincial real estate legislation. Industry associations such as the Saskatchewan Realtors Association are voluntary member organizations, not the licensing authority.

Question 2Real Estate as a Professional Career

A salesperson is licensed under a brokerage in Regina. Under Saskatchewan practice, commission earned on a transaction is legally payable to which party?

  1. The individual salesperson who negotiated the deal
  2. The Saskatchewan Real Estate Commission, which distributes it
  3. The client, who then pays the salesperson directly
  4. The brokerage that holds the salesperson's licence Correct answer.

Explanation

In Saskatchewan a salesperson is licensed to a brokerage, and the brokerage is the party to the agency agreement and the party legally entitled to commission. The salesperson is paid by the brokerage under their employment or independent contractor arrangement.

Question 3Real Estate as a Professional Career

Which statement best describes the agency relationship created when a buyer signs a buyer's brokerage agreement with a Saskatchewan brokerage?

  1. The brokerage becomes a dual agent automatically once an offer is written
  2. The brokerage represents the seller because the seller pays commission through the listing
  3. The brokerage owes the buyer only the duty of honesty and fair dealing
  4. The brokerage owes fiduciary duties to the buyer, including loyalty, confidentiality and full disclosure Correct answer.

Explanation

A buyer's brokerage agreement creates a client relationship in which the brokerage owes fiduciary duties such as loyalty, confidentiality, disclosure and obedience to lawful instructions. Mere honesty and fair dealing is the lower standard owed to customers, not clients.

Question 4Real Estate as a Professional Career

A Saskatchewan salesperson is showing homes to a buyer who has not signed any written service agreement. What duty does the salesperson owe this person?

  1. A duty to negotiate the lowest possible price on the buyer's behalf
  2. Fiduciary duties of loyalty and confidentiality
  3. No duties at all until an agreement is signed
  4. Only the duty to treat the person honestly and with fair dealing Correct answer.

Explanation

A consumer who has not entered a written service agreement is a customer, and the brokerage owes customer-level duties such as honesty, fairness and disclosing known material facts. Fiduciary duties arise only once a client relationship is established in writing.

Question 5Real Estate as a Professional Career

Which of the following is a fiduciary duty a brokerage owes to its client in a Saskatchewan real estate transaction?

  1. Promoting the client's best interests ahead of the brokerage's own interests Correct answer.
  2. Guaranteeing that the property will pass a home inspection
  3. Disclosing the client's confidential financial position to competing buyers
  4. Ensuring the client obtains mortgage financing approval

Explanation

Loyalty requires the brokerage to place the client's legitimate interests above its own and to act in good faith. A brokerage does not guarantee inspection results, financing, or disclose confidential client information.

Question 6Real Estate as a Professional Career

A salesperson licensed with a Saskatchewan brokerage wants to also sell new homes for a builder on weekends. What is required under Saskatchewan licensing rules?

  1. The salesperson must surrender their existing licence first
  2. Nothing, provided the salesperson tells the managing broker verbally
  3. The salesperson must be licensed with, and act through, a brokerage for that activity as well Correct answer.
  4. The salesperson may act independently as long as the builder pays them directly

Explanation

All real estate trading in Saskatchewan must be conducted through a licensed brokerage, so a salesperson cannot independently trade for a builder. The activity must fall under a licensed brokerage arrangement, and the managing broker must be aware of and supervise the activity.

Question 7Real Estate as a Professional Career

Which activity would require a Saskatchewan real estate licence?

  1. An owner advertising their own home for sale
  2. A lawyer drafting a purchase contract for a client
  3. A person negotiating the sale of a home on behalf of another for a fee Correct answer.
  4. A lender pre-approving a buyer for a mortgage

Explanation

Trading in real estate for another person in expectation of remuneration is the core licensed activity under Saskatchewan legislation. Owners selling their own property, lawyers drafting contracts and lenders providing financing are outside the licensing requirement.

Question 8Real Estate as a Professional Career

A salesperson's licence in Saskatchewan lapses because they failed to complete required continuing education. What is the most accurate consequence?

  1. Their brokerage automatically assumes their duties without any change
  2. They must cease licensed trading until the licence is reinstated Correct answer.
  3. They may continue trading under supervision until the next renewal cycle
  4. They may trade only on properties under $200,000

Explanation

Once a licence lapses, the individual is no longer authorized to trade in real estate until it is reinstated through the regulator's process, which typically includes completing the outstanding education. Continuing to trade while unlicensed exposes the person and the brokerage to enforcement action.

Question 9Real Estate as a Professional Career

Under Saskatchewan's regulatory framework, who is responsible for supervising the day-to-day conduct of salespersons within a brokerage?

  1. The Saskatchewan Realtors Association
  2. The provincial Minister of Justice
  3. The managing broker Correct answer.
  4. The salesperson's own client

Explanation

The managing broker is responsible for the brokerage's operations and for supervising the licensed activities of the salespersons registered with it. Supervision includes ensuring compliance with legislation, advertising rules and trust accounting requirements.

Question 10Real Estate as a Professional Career

A salesperson receives a $5,000 deposit cheque from a buyer on a residential offer. What must the salesperson do with the deposit under Saskatchewan rules?

  1. Deliver it promptly to the brokerage to be held in the brokerage's trust account Correct answer.
  2. Hold it personally in a savings account until closing
  3. Forward it directly to the seller's lawyer without recording it
  4. Deposit it into the brokerage's general operating account

Explanation

Deposits and other trust funds must be handled through the brokerage's trust account and accounted for in the brokerage's records. Commingling trust money with operating funds or holding it personally is prohibited.

Question 11Real Estate as a Professional Career

Which of the following best describes the purpose of Saskatchewan's real estate legislation and regulations as they apply to salespersons?

  1. To set commission rates that all brokerages must charge
  2. To protect the public interest by setting standards for licensing, conduct and trust handling Correct answer.
  3. To regulate mortgage interest rates for residential buyers
  4. To guarantee that every transaction closes successfully

Explanation

The regulatory scheme exists to protect consumers by establishing minimum standards for entry, ongoing conduct, disclosure and financial handling. It does not fix commission rates, guarantee closings or control mortgage rates.

Question 12Real Estate as a Professional Career

A buyer asks a salesperson whether a property's basement has ever flooded. The salesperson knows from the seller that it has, but the seller instructs the salesperson not to mention it. If the salesperson represents the buyer, what is the appropriate response?

  1. Remain silent because the seller's instructions override everything
  2. Disclose the known material fact to the buyer Correct answer.
  3. Tell the buyer only if directly asked about water
  4. Withdraw from the transaction without explanation

Explanation

A salesperson must disclose known material latent defects to a buyer, even where the seller prefers silence, because honesty and disclosure of material facts are core duties. The salesperson should also advise the seller to disclose and seek guidance from the managing broker.

Question 13Real Estate as a Professional Career

Which of the following situations would most likely constitute a conflict of interest requiring disclosure and possible consent in Saskatchewan?

  1. A salesperson recommends a home inspector to a client
  2. A salesperson advertises a listing on social media
  3. A salesperson attends a continuing education course
  4. A salesperson represents both the buyer and the seller in the same transaction Correct answer.

Explanation

Acting for both parties in the same transaction creates a dual agency situation that requires full disclosure and the informed written consent of both clients, and is restricted under Saskatchewan rules. Recommending service providers, advertising and taking courses do not inherently create a prohibited conflict.

Question 14Real Estate as a Professional Career

A salesperson wants to buy a listing that their own brokerage has listed. Under Saskatchewan practice, what is the key requirement?

  1. No special steps are needed because the salesperson is a licensed professional
  2. The salesperson may negotiate privately with the seller to avoid commission
  3. The salesperson must transfer their licence to another brokerage before writing an offer
  4. The salesperson must disclose their licensed status and interest in writing and follow the brokerage's conflict procedures Correct answer.

Explanation

When a licensee acquires an interest in a property, they must disclose their licensed status and their personal interest in writing so all parties understand the relationship. The managing broker's conflict-of-interest procedures must also be followed.

Question 15Real Estate as a Professional Career

A salesperson is asked by a client to provide an opinion on the market value of a residential property for a private sale. Under Saskatchewan rules, what should the salesperson consider?

  1. Providing a formal appraisal is fine because salespersons know local prices
  2. Salespersons are prohibited from discussing price at all
  3. Providing a comparative market analysis is generally acceptable, but a formal appraisal requires the appropriate certification Correct answer.
  4. Only the seller may discuss value with a salesperson

Explanation

Salespersons may prepare a comparative market analysis to help clients understand pricing, but a formal appraisal of value is reserved for properly certified appraisers. Confusing the two roles can create liability and regulatory problems.

Question 16Real Estate as a Professional Career

Which of the following is an example of a salesperson acting outside the scope of their licence?

  1. Showing a listed property to a prospective buyer
  2. Providing legal advice on how a title defect should be resolved Correct answer.
  3. Preparing a comparative market analysis for a seller client
  4. Explaining the standard offer process to a first-time buyer

Explanation

Giving legal advice on title defects is the practice of law and falls outside a real estate salesperson's licensed scope. Salespersons should refer clients to a lawyer for legal questions while continuing to explain the transaction process.

Question 17Real Estate as a Professional Career

A brokerage's privacy obligations in Saskatchewan require which of the following when collecting a client's personal financial information?

  1. Collecting only what is reasonably needed for the purpose and informing the client how it will be used Correct answer.
  2. Retaining all client records indefinitely regardless of relevance
  3. Sharing the information with all other brokerages to improve market data
  4. Publishing the information in listing remarks to show buyer strength

Explanation

Privacy law requires organizations to limit collection to what is reasonable for a stated purpose and to inform individuals about the use and disclosure of their information. Over-collection, unnecessary sharing and public disclosure of financial data are inappropriate.

Question 18Real Estate as a Professional Career

A salesperson licensed in Saskatchewan moves from one brokerage to another. What is required regarding their licence?

  1. The licence automatically follows the salesperson with no action
  2. The salesperson must apply to transfer the licence to the new brokerage and terminate the prior registration Correct answer.
  3. The salesperson must write a new licensing exam
  4. The salesperson must wait one year before joining another brokerage

Explanation

A Saskatchewan salesperson's licence is tied to a specific brokerage, so moving requires a formal transfer or re-registration with the regulator and termination of the previous registration. The new managing broker must also accept the registration.

Question 19Real Estate as a Professional Career

Which of the following advertising practices by a Saskatchewan salesperson would breach regulatory requirements?

  1. Including the property address in a listing ad
  2. Advertising a property without the seller's consent Correct answer.
  3. Including the brokerage's name and the salesperson's licensed name in an ad
  4. Stating the asking price in an advertisement

Explanation

Advertising a property without the owner's authorization breaches the duty of loyalty and the rules governing advertising. Ads must also identify the brokerage and the licensee accurately.

Question 20Real Estate as a Professional Career

A salesperson is unsure whether a proposed marketing tactic complies with Saskatchewan real estate rules. What is the most appropriate first step?

  1. Consult the managing broker and the regulator's guidance before proceeding Correct answer.
  2. Ask the client to sign a waiver of liability
  3. Implement the tactic only on social media where rules do not apply
  4. Proceed and rely on the fact that no complaint has been made

Explanation

Salespersons should seek guidance from their managing broker and the Saskatchewan Real Estate Commission's published guidance when uncertain about compliance. Proceeding without clearance or relying on client waivers does not cure a regulatory breach.

Question 21Real Estate as a Professional Career

Which statement about continuing education for Saskatchewan salespersons is most accurate?

  1. Licensees must complete the regulator's required continuing education to maintain their licence Correct answer.
  2. Continuing education is required only for managing brokers
  3. Continuing education is optional for experienced licensees
  4. Continuing education credits can be earned solely by reading newspapers

Explanation

Saskatchewan licensees must complete the continuing education required by the regulator within each licensing cycle to maintain their registration. Failure to complete it can result in suspension or non-renewal of the licence.

Question 22Real Estate as a Professional Career

A buyer client tells their salesperson, in confidence, that they are willing to pay up to $50,000 above list price. The seller's agent asks the salesperson about the buyer's motivation. What should the salesperson do?

  1. Disclose the buyer's maximum because honesty requires full transparency to the other side
  2. Keep the information confidential because it is the buyer's client information Correct answer.
  3. Share it anonymously with other buyers
  4. Disclose it only if the seller agrees to reduce the price

Explanation

Confidentiality requires the salesperson to protect the buyer client's negotiating position and not reveal it to the opposing party. Honesty does not require disclosing a client's confidential instructions to the other side.

Question 23Real Estate as a Professional Career

A salesperson licensed in Saskatchewan is approached by a friend in Alberta who wants help selling an Alberta property. What is the correct approach?

  1. Market the property only through social media to avoid licensing issues
  2. Ask the Saskatchewan Commission to issue a temporary Alberta licence
  3. List and market the Alberta property directly because licences are recognized nationwide
  4. Refer the friend to a salesperson licensed in Alberta and confirm any referral arrangement complies with both jurisdictions' rules Correct answer.

Explanation

Real estate licensing is provincial, so a Saskatchewan licensee cannot trade in Alberta property without an Alberta licence. The proper step is to refer the client to an Alberta licensee and ensure any referral fee arrangement complies with the rules of both jurisdictions.

Question 24Real Estate as a Professional Career

Which of the following best describes the role of the Saskatchewan Real Estate Commission in handling consumer complaints about a salesperson?

  1. It can only issue warnings with no other powers
  2. It has no authority once a transaction closes
  3. It can order the salesperson to pay the buyer's mortgage
  4. It can investigate and take disciplinary action, including fines, suspension or licence cancellation Correct answer.

Explanation

The Commission has statutory authority to investigate complaints and impose discipline, which can include fines, conditions, suspension or cancellation of a licence. It does not adjudicate mortgage obligations or limit itself to warnings.

Question 25Real Estate as a Professional Career

A salesperson's client asks them to backdate a service agreement so it appears signed before a showing occurred. What should the salesperson do?

  1. Sign the client's name to the agreement to save time
  2. Backdate it only if the managing broker is not told
  3. Refuse, because altering the date would create a false record and breach regulatory and legal obligations Correct answer.
  4. Backdate it because the client is the principal in the transaction

Explanation

Creating or assisting in a false record, including backdating documents, is dishonest and breaches the standards of conduct expected of licensees. The salesperson must refuse and explain the correct process for documenting the agreement.

Question 26Real Estate as a Professional Career

In Saskatchewan, which body administers the licensing of real estate salespersons and brokers?

  1. The provincial Ministry of Finance
  2. The Saskatchewan Real Estate Commission Correct answer.
  3. The local real estate board association
  4. The Financial and Consumer Affairs Authority

Explanation

The Saskatchewan Real Estate Commission is the regulatory body that administers licensing, establishes standards of conduct, and handles complaints about registrants. Boards of trade and local associations are industry organizations, not the licensing authority.

Question 27Real Estate as a Professional Career

A person who holds a Saskatchewan salesperson's licence must be registered with which of the following at all times while trading in real estate?

  1. A recognized brokerage Correct answer.
  2. A national title insurance company
  3. An independent legal practice
  4. A municipal business improvement zone

Explanation

Salespersons in Saskatchewan cannot trade in real estate independently; they must be registered with a licensed brokerage that supervises their activity. The brokerage is accountable for the salesperson's conduct and for handling trust funds.

Question 28Real Estate as a Professional Career

Which of the following is the primary purpose of Saskatchewan's real estate licensing regime as it applies to salespersons?

  1. To standardize commission rates across the province
  2. To limit the number of salespersons who may enter the industry
  3. To protect the public by setting standards of competence and conduct Correct answer.
  4. To guarantee that property values will rise over time

Explanation

Licensing exists to protect consumers by ensuring salespersons meet education, conduct, and accountability standards. It does not set prices, guarantee market outcomes, or cap the number of entrants.

Question 29Real Estate as a Professional Career

A Saskatchewan salesperson is offered a gift by a mortgage broker for referring a buyer client. What is the appropriate response under the rules of professional conduct?

  1. Split the gift with the brokerage and record it in trust
  2. Decline the gift and disclose the referral arrangement to the client Correct answer.
  3. Accept the gift only if it is under a set dollar value
  4. Accept the gift and keep it confidential from the client

Explanation

Referral arrangements that create an undisclosed benefit conflict with the duty of loyalty and disclosure owed to clients. The salesperson should refuse the benefit and make any referral relationship transparent to the client.

Question 30Real Estate as a Professional Career

A salesperson's licence is suspended by the Commission. Which statement best describes the salesperson's ability to continue trading in real estate during the suspension?

  1. They may continue working under another salesperson's licence
  2. They must cease all licensed trading activity until the suspension is lifted Correct answer.
  3. They may trade only in commercial property during the suspension
  4. They may continue if their brokerage agrees in writing

Explanation

A suspended licence removes the legal authority to trade in real estate, and no brokerage consent can restore it. Any trading during suspension would be unlicensed activity subject to enforcement.

Question 31Real Estate as a Professional Career

A Saskatchewan salesperson is shown a property by a competing salesperson and decides to buy it personally. Which step best reflects the duty owed in this situation?

  1. Assign the purchase to a family member to avoid disclosure
  2. Proceed quietly to avoid driving up the price
  3. Disclose the intent to purchase in writing to all parties through the brokerage Correct answer.
  4. Wait until the listing expires and deal directly with the seller

Explanation

A salesperson buying property in a transaction where they have inside knowledge must make their position transparent through written disclosure to avoid an undisclosed conflict. Concealing the intent or using a nominee undermines the duty of good faith.

Question 32Real Estate as a Professional Career

Which of the following best describes the Commission's approach to consumer complaints about a salesperson's conduct?

  1. It reviews complaints and may investigate, discipline, or refer matters for further action Correct answer.
  2. It requires consumers to sue in court before any review occurs
  3. It awards damages to consumers after a hearing
  4. It forwards all complaints to the local real estate board for final decision

Explanation

The Commission receives and reviews complaints, may investigate, and can impose regulatory discipline such as fines, conditions, or suspension. It does not function as a court awarding civil damages.

Question 33Real Estate as a Professional Career

A salesperson has a personal friendship with a seller and wants to reduce their commission below the brokerage's standard rate. What is the correct course of action?

  1. Set the reduced rate unilaterally and inform the brokerage afterward
  2. Obtain the brokerage's approval because commission terms are set through the brokerage Correct answer.
  3. Offer the reduction only if the seller signs a confidentiality clause
  4. Reduce the rate only if the buyer agrees to cover the difference

Explanation

Commission is negotiated through the brokerage, which holds the service agreement and controls remuneration terms. A salesperson cannot independently alter the brokerage's fee structure.

Question 34Real Estate as a Professional Career

A salesperson learns that a client is planning to sell a property that the salesperson knows has an unpermitted basement suite. What is the salesperson's most appropriate action?

  1. Arrange for the suite to be listed as a legal rental unit
  2. Stay silent because the seller decides what to disclose
  3. Recommend the client remove the suite before listing without further advice
  4. Advise the client to disclose the unpermitted suite and recommend confirming the status with the municipality Correct answer.

Explanation

The salesperson should encourage accurate disclosure and recommend the client verify the suite's legal status with the local authority. Misrepresenting an unpermitted suite exposes both client and salesperson to liability.

Question 35Real Estate as a Professional Career

Which statement best describes the obligation of a Saskatchewan salesperson regarding errors and omissions insurance?

  1. Coverage is provided only for brokers, not salespersons
  2. Coverage is required only when handling commercial transactions
  3. Coverage is optional and left to each salesperson's discretion
  4. Coverage is required as a condition of licensing to protect consumers and registrants Correct answer.

Explanation

Errors and omissions insurance is a licensing requirement in Saskatchewan, providing a source of protection for consumers who suffer loss from a registrant's error. It applies to salespersons generally, not only to brokers or commercial deals.

Question 36Real Estate as a Professional Career

A salesperson licensed in Saskatchewan is asked to represent a buyer purchasing a property in another province. What is the most accurate statement about this request?

  1. The salesperson may proceed if the buyer signs a waiver
  2. The salesperson may proceed if the other province has no regulator
  3. The Saskatchewan licence automatically covers all Canadian provinces
  4. The salesperson must generally be licensed in the jurisdiction where the property is located Correct answer.

Explanation

Real estate licensing is provincial, so trading in property located in another province generally requires a licence there or a referral to a local licensee. A Saskatchewan licence does not extend extraprovincially.

Question 37Real Estate as a Professional Career

A salesperson's client asks them to sign the seller's name on a document because the seller is out of town. What is the appropriate response?

  1. Refuse, because signing another party's name without authorization is improper Correct answer.
  2. Sign the document and note that the seller authorized it verbally
  3. Sign and have the seller ratify it after returning
  4. Sign only if the brokerage's manager approves

Explanation

A salesperson must never sign a party's name on transaction documents; doing so is improper regardless of verbal assurances. The correct approach is to obtain the seller's genuine signature or proper written authorization through legal channels.

Question 38Real Estate as a Professional Career

Which of the following best reflects a salesperson's duty regarding confidentiality of client information after the transaction closes?

  1. The duty ends when the transaction closes
  2. The duty applies only to information the client marks confidential
  3. The duty continues after closing unless disclosure is required by law or authorized by the client Correct answer.
  4. The duty ends when the salesperson changes brokerages

Explanation

Confidentiality survives the end of the transaction and continues unless the client authorizes disclosure or the law requires it. It is not limited to information the client labels confidential.

Question 39Real Estate as a Professional Career

A salesperson wants to include a client testimonial in an advertisement. What is the most appropriate practice?

  1. Publish it only after the transaction closes
  2. Publish it only if the client's full name is shown
  3. Publish it without consent because it is positive feedback
  4. Obtain the client's consent before publishing the testimonial Correct answer.

Explanation

Using a client's name or comments in advertising requires consent, consistent with privacy obligations and professional conduct. Publishing without consent can breach privacy rules even if the feedback is favourable.

Question 40Real Estate as a Professional Career

A salesperson is unsure whether a proposed social media promotion complies with Saskatchewan advertising rules. What is the most appropriate first step?

  1. Consult the brokerage's designated managing broker before publishing Correct answer.
  2. Publish it under a pseudonym to limit exposure
  3. Ask a competing salesperson for an informal opinion
  4. Publish it and remove it if a complaint arises

Explanation

The managing broker is responsible for supervising the brokerage's advertising and is the appropriate first point of guidance. Publishing first and reacting to complaints risks non-compliance.

Question 41Real Estate as a Professional Career

Which statement about the handling of trust funds by a Saskatchewan salesperson is most accurate?

  1. Deposits must be delivered to the brokerage for deposit into a trust account without delay Correct answer.
  2. Deposits may be held by the seller's lawyer until the salesperson requests release
  3. Deposits may be held in the salesperson's personal account temporarily
  4. Deposits may be applied to the salesperson's commission before closing

Explanation

Trust funds belong to the parties and must be promptly delivered to the brokerage for deposit into a designated trust account. Salespersons must never hold or apply client deposits personally.

Question 42Real Estate as a Professional Career

A salesperson is asked to provide a written market value estimate for a property as part of a mortgage application. What is the appropriate response?

  1. Decline and refer the client to a licensed appraiser Correct answer.
  2. Provide the estimate only if the lender agrees in writing
  3. Provide the estimate with a disclaimer that it is informal
  4. Provide the estimate using comparable sales

Explanation

Formal valuations for lending purposes require a licensed appraiser; a salesperson providing one exceeds their scope. Comparable market analysis for pricing advice is distinct from an appraisal.

Question 43Real Estate as a Professional Career

Which of the following best describes the role of the managing broker in a Saskatchewan brokerage?

  1. Supervising the brokerage's salespersons and ensuring regulatory compliance Correct answer.
  2. Setting provincial licensing standards for the Commission
  3. Auditing trust accounts for other brokerages
  4. Selling exclusively commercial properties for the brokerage

Explanation

The managing broker is accountable for supervising salespersons and ensuring the brokerage operates in compliance with the Act and regulations. Setting provincial standards and auditing other brokerages are Commission functions.

Question 44Real Estate as a Professional Career

A salesperson receives an offer on a listing and the seller wants to counter. What is the salesperson's most appropriate action?

  1. Verbally communicate the counter and confirm later
  2. Advise the buyer directly of the counter terms without involving their representative
  3. Wait for a second offer before presenting the counter
  4. Present the counter-offer promptly and in writing to the buyer's representative Correct answer.

Explanation

Counter-offers must be communicated promptly and in writing through the proper channels. Delaying or bypassing the buyer's representative undermines the integrity of the negotiation process.

Question 45Real Estate as a Professional Career

A salesperson's licence has lapsed and they want to resume trading. What is the most accurate statement about the process?

  1. They may resume immediately because the brokerage still employs them
  2. They may resume if a client signs a consent to unlicensed service
  3. They may resume after paying only the previous year's fees
  4. They must apply for reinstatement and satisfy the Commission's current requirements Correct answer.

Explanation

Resuming practice after a lapse requires reinstatement through the Commission and meeting its current requirements, which may include education or fees. Employment by a brokerage or client consent does not restore a lapsed licence.

Question 46Real Estate as a Professional Career

A salesperson is asked by a seller to withhold from buyers that a neighbouring property is slated for a large industrial development. What is the salesperson's best course of action?

  1. Follow the seller's instruction because the seller controls disclosure
  2. Disclose only if a buyer asks directly
  3. Advise the seller that material facts affecting value should be disclosed and document the advice Correct answer.
  4. Withhold the information but reduce the list price

Explanation

Material facts that could affect a buyer's decision, such as nearby industrial development, should be disclosed; the salesperson should advise the seller accordingly and document that advice. Following an instruction to conceal material information exposes both parties to liability.

Question 47Real Estate as a Professional Career

A salesperson is offered a chance to invest in a property development in exchange for steering buyer clients to the developer. Which statement best describes the compliance concern?

  1. The arrangement is acceptable if the salesperson discloses it after closing
  2. The arrangement creates an undisclosed conflict of interest that must be avoided or fully disclosed Correct answer.
  3. The arrangement is acceptable if the clients never learn of the investment
  4. The arrangement is acceptable if the developer pays the brokerage rather than the salesperson

Explanation

Steering clients in exchange for a personal benefit is a conflict of interest that compromises the duty of loyalty. Routing payment through the brokerage or concealing it from clients does not cure the conflict; full disclosure and avoidance are required.

Question 48Real Estate as a Professional Career

A salesperson is asked to act for both the buyer and the seller in the same residential transaction. Under Saskatchewan practice, what is the key requirement?

  1. The salesperson may act for both parties without any disclosure
  2. The salesperson must reduce their commission to act for both parties
  3. The salesperson must refer the matter to the Commission for approval before proceeding
  4. The parties must give informed written consent to the dual representation after full disclosure Correct answer.

Explanation

Limited dual agency requires full disclosure of the risks and informed written consent from both parties. Without that consent the salesperson cannot act for both sides.

Question 49Real Estate as a Professional Career

A salesperson learns that their buyer client intends to use the property for a short-term rental prohibited by the condominium's bylaws. What is the salesperson's most appropriate action?

  1. Advise the buyer of the bylaw restriction and document the advice before proceeding Correct answer.
  2. Advise the buyer to conceal the intended use from the condominium board
  3. Proceed because the salesperson is not responsible for bylaw compliance
  4. Proceed because the buyer's intended use is the buyer's private decision

Explanation

A salesperson must not facilitate a transaction on a false premise; advising the buyer of the bylaw restriction and documenting that advice protects both parties. Ignoring or concealing the restriction could expose the salesperson to a claim of negligence or misrepresentation.

Question 50Real Estate as a Professional Career

Which of the following best describes the ethical obligation of a salesperson who discovers a personal interest that could affect their objectivity in a client's transaction?

  1. Continue the transaction and disclose only if the client asks
  2. Continue the transaction and disclose after the offer is accepted
  3. Disclose the interest promptly and take steps to manage or avoid the conflict Correct answer.
  4. Transfer the file to another salesperson without telling the client

Explanation

Prompt disclosure of any personal interest that may affect objectivity is required, along with steps to manage or avoid the conflict. Delayed or silent handling denies the client the chance to make an informed decision.