In this scenario, the local unemployment rate has increased from 5% to 7%. Historically, there is an inverse relationship between unemployment rates and real estate demand. Higher unemployment typically leads to reduced consumer confidence and decreased disposable income, which in turn lowers the demand for purchasing homes. Additionally, higher unemployment can lead to higher vacancy rates and put downward pressure on property values. If the unemployment rate rises, it’s reasonable to expect a decrease in demand for real estate, which negatively impacts property prices.

The correct answer is a). To determine which scenario represents an enforceable contract, we must evaluate the essential elements of a contract: offer, acceptance, consideration, intention to create legal relations, and certainty of terms. In option a), both parties have agreed verbally and in writing on all the essential terms required for a real estate contract, including purchase price, deposit, closing date, and major contingencies like financing and home inspection. Although the clause regarding the sale of John’s current home is missing, this omission may be considered a non-material term if it does not significantly affect the agreement’s core obligations. The presence of mutual consent, clear terms, and consideration (each party providing something of value) satisfies the requirements for an enforceable contract in Nova Scotia. In contrast, option b) suggests that the missing clause is a material term essential to the contract, which is not necessarily the case unless it was explicitly agreed upon as a condition. Option c) incorrectly assumes that the contract’s enforceability hinges solely on including the missing clause, disregarding the existing valid elements. Option d) incorrectly interprets the situation by suggesting that a verbal agreement can be voided simply because John decides to back out within a week, ignoring the binding nature of the signed written agreement. Therefore, option a) best aligns with the principles of contract enforceability in Nova Scotia real estate law.

In multicultural societies like Nova Scotia, understanding the diverse cultural backgrounds of potential buyers and tenants is crucial for real estate professionals. For instance, certain cultures may prefer specific architectural styles, community layouts, or proximity to cultural centers and places of worship. Additionally, social factors such as family structure, income levels, and community values influence housing preferences and market demand. By recognizing and adapting to these cultural and social nuances, real estate brokers can better tailor their services, marketing strategies, and property offerings to meet the needs of diverse client bases, thereby enhancing client satisfaction and market success.

In this scenario, the real estate broker learns that the seller failed to disclose a significant foundation issue in the property. According to the ethical standards set by the Nova Scotia Real Estate Commission, brokers are obligated to act in the best interests of their clients while maintaining honesty and integrity in all transactions. The broker must disclose all known material facts that could affect a buyer’s decision. Option (a) states that the broker should inform the buyer of the undisclosed defect and advise the seller to rectify the issue or adjust the sale terms accordingly. This aligns with the duty to disclose material information and ensures transparency. Option (b), advising the buyer to proceed without disclosure, violates ethical standards by withholding crucial information. Option (c), ignoring the defect to expedite the sale, breaches the broker’s duty of honesty and can lead to legal repercussions. Option (d), waiting for the buyer to discover the defect independently, also fails to uphold the broker’s responsibility to disclose material facts proactively. Therefore, option (a) is the correct and ethically sound choice.

In the scenario provided, the real estate broker is faced with a potential conflict of interest when representing both the buyer and the seller in the same transaction. According to the professional conduct standards in Nova Scotia, brokers must prioritize their fiduciary duty to their clients, which includes loyalty, confidentiality, full disclosure, and acting in the best interests of the client. Representing both parties in a transaction can compromise these duties, as the broker may have access to confidential information from both sides that could influence their impartiality. The appropriate course of action to maintain accountability and uphold professional standards is to disclose the conflict of interest to both parties and typically to refrain from dual agency unless explicitly authorized by both clients with full disclosure and consent.

The correct answer is (a) Jane must inform all potential buyers about the foundation issue, regardless of Mr. Thompson’s request, to comply with disclosure obligations and maintain ethical standards. In Nova Scotia, real estate brokers are bound by strict disclosure obligations under the Real Estate Services Act, which require them to disclose any known material defects of a property to potential buyers. A foundation issue is considered a material defect as it can significantly impact the property’s value and the buyer’s decision to purchase. The broker’s responsibility to disclose takes precedence over the seller’s request to withhold such information. From an ethical standpoint, brokers are expected to act with honesty and integrity, prioritizing the best interests of all parties involved, including potential buyers. Failing to disclose a material defect can lead to legal repercussions for misrepresentation or fraud, as well as damage to the broker’s professional reputation. Additionally, transparency in transactions builds trust and upholds the standards of the real estate profession. Ignoring the disclosure requirement, as suggested in options (b) through (d), would violate both legal obligations and ethical standards. Option (b) is incorrect because the broker cannot rely solely on the seller’s assurance without verification. Option (c) is flawed as disclosure should not be conditional upon a buyer’s inquiry; it must be proactive. Option (d) is inappropriate because discretion in disclosure can lead to inconsistent and potentially unlawful practices. Therefore, to ensure compliance and uphold professional ethics, Jane must disclose the foundation issue to all potential buyers.

In this scenario, the real estate broker is faced with a situation where a seller is hesitant to disclose a known property defect to potential buyers. According to the role and responsibilities of a real estate broker in Nova Scotia, the broker has a fiduciary duty to act in the best interests of their client, which includes ensuring that all material facts about a property are disclosed to potential buyers. Material defects are those that could affect the property’s value or the buyer’s decision to purchase. Failing to disclose such information can lead to legal consequences and damage the broker’s reputation. The broker must balance the interests of the seller with legal and ethical obligations to the buyer. By advising the seller to disclose the defect, the broker ensures compliance with real estate laws and maintains transparency in the transaction, which is essential for upholding trust and integrity in the real estate market.

To determine the optimal listing price, the broker analyzes recent comparable sales in the Dartmouth area, which average $500,000 for similar condominiums. Considering the neighborhood has enhanced public transportation and a new community center, demand is on the rise, indicating a seller’s market. The client’s condominium boasts luxury appliances, smart home technology, and eco-friendly materials—features that significantly enhance the property’s appeal and can justify a premium. Typically, such high-end upgrades can warrant a 5% increase over the average comparable price. Calculating 5% of $500,000 results in an additional $25,000, leading to a recommended listing price of $525,000. This pricing strategy leverages the favorable market conditions and the unique attributes of the property to maximize the sale price while remaining competitive. Pricing above the average is justified by the enhanced features, ensuring that the listing reflects the true market value and attracts buyers who recognize and are willing to pay for the added benefits. This approach balances maximizing profit with market expectations, reducing the time the property remains on the market.

In the scenario presented, the landlord is responsible for ensuring that the heating system is functional and safe, as it is considered a major appliance essential for maintaining habitable living conditions. According to Nova Scotia Residential Tenancies Act, landlords must maintain the premises in a good state of repair, complying with health and safety standards. The tenant is responsible for minor maintenance tasks and reporting significant issues promptly. Failure to address a malfunctioning heating system can lead to health risks and potential legal liabilities for the landlord. Therefore, the correct course of action is for the landlord to arrange for the repair or replacement of the heating system at their expense to ensure compliance with the law and the tenant’s right to a habitable living environment.

In a dual agency situation, the real estate broker represents both the buyer and the seller in the same transaction. This arrangement requires careful handling to maintain fairness and comply with legal and ethical standards. The broker must provide equitable treatment to both parties, ensuring that confidential information from one party is not disclosed to the other, which could compromise the negotiations. For example, the seller’s agent knows the minimum price the seller is willing to accept, and the buyer’s agent knows the maximum price the buyer is prepared to offer. In dual agency, the broker must refrain from disclosing these critical pieces of information to either party to prevent any undue advantage. Additionally, dual agents must obtain informed consent from both parties, fully disclosing the nature of the dual relationship and any potential conflicts of interest. They must also maintain neutrality, avoiding any actions that could be perceived as favoring one party over the other. Failure to manage these responsibilities can lead to legal repercussions, loss of license, and damage to the broker’s reputation. Thus, dual agency requires a high level of professionalism, transparency, and adherence to ethical guidelines to ensure that both the buyer and the seller are treated fairly throughout the transaction process.

In the context of negotiating a real estate transaction, understanding and prioritizing the client’s needs is crucial for successful outcomes. Option (a) is correct because developing a clear understanding of the client’s priorities allows the broker to tailor negotiation strategies effectively. This involves active listening, asking probing questions, and comprehensively assessing what the client values most, whether it’s price, closing date, contingencies, or specific terms. By aligning the negotiation approach with the client’s objectives, the broker can better advocate for their interests, propose compromises that are acceptable to both parties, and ultimately facilitate a mutually beneficial agreement. This strategy not only enhances client satisfaction but also builds trust and fosters long-term professional relationships. In contrast, the other options may address different aspects of negotiation but do not directly focus on aligning the strategy with the client’s unique priorities, which is essential for achieving the most favorable outcome. Effective preparation and a deep understanding of the client’s goals enable the broker to navigate complexities, anticipate challenges, and respond proactively, thereby increasing the likelihood of a successful negotiation.

When considering local government policies that affect real estate, zoning bylaws play a pivotal role in determining how land within a municipality can be used. Zoning bylaws dictate the types of buildings permitted, their sizes, usage (residential, commercial, industrial), and other aspects like setbacks and building heights. For a real estate broker, understanding these regulations is essential as they directly impact property development potential, resale values, and the suitability of properties for clients’ specific needs. In the given scenario, the real estate broker is evaluating a property for potential mixed-use development. The correct assessment hinges on whether the local zoning allows for such a development. Mixed-use zoning permits the combination of residential, commercial, and sometimes industrial uses within a single property or area, facilitating integrated communities. If the local zoning bylaws support mixed-use development, the broker can proceed with planning and advising clients accordingly. Conversely, if the zoning restricts the property to solely residential or commercial use, the broker must explore rezoning options or alternative properties. Understanding the nuances of zoning bylaws aids brokers in advising clients on the feasibility of their projects, potential return on investment, and compliance with municipal regulations. Additionally, being well-versed in these policies helps brokers anticipate market trends influenced by local government initiatives, such as incentives for green buildings or restrictions on certain property types. This deep comprehension ensures that brokers provide informed, strategic guidance, aligning client objectives with the regulatory landscape.

In assessing the legal obligations of a property manager when a tenant causes substantial damage to the rental property, it’s essential to consider the Residential Tenancies Act of Nova Scotia. The property manager must first document the damage thoroughly, including photographs and detailed descriptions. They should notify the tenant in writing about the damage and provide a reasonable timeframe for repair or compensation. If the tenant fails to address the damage, the property manager can issue a notice to terminate the tenancy based on the tenant’s breach of the lease agreement. It’s crucial to follow the proper legal procedures to avoid claims of wrongful eviction. Additionally, the property manager can deduct costs for repairs from the tenant’s security deposit, provided there is clear evidence of the damage and associated costs. Throughout this process, maintaining clear communication and adhering to legal timelines and documentation requirements are paramount to ensure compliance and protect the property manager from potential legal disputes.

To determine the most effective portfolio diversification strategy for a real estate investor in Nova Scotia, we must analyze the distribution of investments across different property types and geographic locations. Suppose an investor has a portfolio worth CAD 1,000,000 and is considering diversifying into residential, commercial, and industrial properties. Allocating 50% to residential (CAD 500,000), 30% to commercial (CAD 300,000), and 20% to industrial (CAD 200,000) can balance risk and potential returns. Residential properties typically offer stable income with lower risk, commercial properties can provide higher returns but come with higher volatility, and industrial properties may offer growth potential due to e-commerce trends. Additionally, spreading investments across various neighborhoods within Nova Scotia can mitigate regional market downturns. By diversifying both property types and geographic locations, the investor reduces exposure to any single market segment, enhancing the overall resilience of the portfolio. This strategy adheres to the fundamental principles of diversification by balancing risk and reward, ensuring that poor performance in one sector can be offset by stability or growth in others.

In the given scenario, the real estate broker must effectively manage the negotiation between a buyer and a seller with conflicting priorities. The correct approach involves identifying the underlying interests of both parties and facilitating a compromise that addresses the primary concerns of each. By proposing a flexible closing date, the broker acknowledges the seller’s need for a smooth transition while accommodating the buyer’s timeline constraints. This strategy fosters a collaborative environment, builds trust, and increases the likelihood of reaching a mutually beneficial agreement. Additionally, offering to cover some of the closing costs can alleviate the buyer’s financial burden, making the offer more attractive without significantly impacting the seller’s bottom line. This balanced approach demonstrates the broker’s ability to navigate complex negotiations by prioritizing effective communication, understanding client needs, and creatively addressing potential barriers to deal closure.

To determine the feasibility of the mixed-use development project, the broker must analyze how zoning regulations and the cost of obtaining variances will affect the overall project. The potential return on investment (ROI) is significantly influenced by regulatory constraints. Here’s the calculation approach: 1. **Identify Costs**: Estimate the cost of obtaining necessary variances to modify zoning laws. 2. **Assess Impact**: Determine how these costs affect the total budget and potential ROI. 3. **Compare Benefits vs. Costs**: Weigh the benefits of high visibility, accessibility, and strong market demand against the financial burden of regulatory compliance. 4. **Final Decision**: If the costs of variances are too high and negatively impact ROI, the project may not be feasible despite favorable market conditions. In this case, while the site’s location and market demand are strong positives, the high costs associated with modifying zoning regulations could jeopardize the project’s financial viability. Understanding regulatory constraints is crucial because they can negate other advantageous factors. Therefore, prioritizing the impact of zoning regulations and associated costs is essential to accurately assess the project’s feasibility.

To determine the most effective diversification strategy for the investor’s portfolio, we must evaluate how each option impacts risk and potential returns. The investor’s current portfolio consists entirely of residential real estate in Nova Scotia, which inherently lacks diversification and is subject to sector-specific risks such as changes in housing demand, interest rate fluctuations, and local economic shifts. **Option a)** suggests investing in commercial real estate properties across different sectors. Diversifying into commercial real estate (e.g., office spaces, retail centers, industrial warehouses) spreads the investment across various property types that may respond differently to economic changes. For instance, while residential real estate may suffer during an economic downturn, certain commercial sectors like industrial warehouses might remain stable or even thrive due to consistent demand for logistics and storage. This cross-sector diversification reduces overall portfolio risk and can enhance returns by capturing growth in multiple areas of the real estate market. **Option b)** involves increasing investment in residential real estate within the same region. This approach does not provide true diversification since the portfolio remains concentrated in one sector and geographic area, leaving it vulnerable to localized market downturns. **Option c)** proposes allocating funds to international real estate markets. While geographic diversification can reduce risk, international investments introduce complexities such as currency risk, differing regulatory environments, and potential lack of market familiarity, which may not align with the investor’s expertise or risk tolerance. **Option d)** recommends purchasing additional properties within the same residential segment but varying property types (e.g., single-family homes vs. multi-family units). Although this introduces some diversification within the residential sector, it does not significantly mitigate the overarching sector-specific risks compared to diversifying across different real estate sectors. Therefore, **Option a** offers the most effective diversification by spreading investments across multiple commercial real estate sectors, thereby reducing overall portfolio risk and enhancing potential returns.

The correct answer is (a) A real estate broker cannot refuse to show a property to a potential buyer based on their national origin. In the context of Fair Housing Laws and Anti-Discrimination Policies in Canada, particularly in Nova Scotia, real estate professionals are prohibited from discriminating against individuals based on specific protected characteristics. These characteristics include race, national or ethnic origin, color, religion, sex, gender identity or expression, sexual orientation, marital status, family status, disability, and age. Refusing to show a property to a potential buyer because of their national origin directly violates these anti-discrimination principles. Option (a) correctly identifies a prohibited discriminatory action under Fair Housing Laws. Option (b), which suggests requiring all clients to have a certain credit score, is related to financial qualifications rather than discrimination based on protected characteristics, and while it may violate other regulations if used discriminatorily, it is not as directly related to anti-discrimination policies based on national origin. Option (c), allowing landlords to set their own pet policies, pertains to property management rather than the actions of a real estate broker in showing properties. Option (d), offering discounts to first-time buyers, could be seen as preferential treatment but does not constitute discrimination based on the protected characteristics listed. Therefore, option (a) is the most accurate and directly related to anti-discrimination policies in real estate.

In urban planning, the Zoning By-law is a critical tool used by municipalities to regulate land use and ensure orderly development. When a developer proposes a mixed-use project in an area currently zoned exclusively for residential purposes, they must apply for a zoning variance or amendment. The local planning authority will assess whether the proposed change aligns with the community’s long-term development goals, infrastructure capacity, and environmental considerations. Public consultations are often part of this process to gather community input. Additionally, the developer must demonstrate that the mixed-use development will not negatively impact the existing residential character and that necessary services and amenities are available or can be provided. Compliance with provincial regulations and alignment with the municipality’s official plan are essential for approval.

Agent Smith analyzed her social media engagement metrics and identified that Facebook advertisements targeting users aged 30-45 in her local area generated the highest number of inquiries and leads. This indicates that this specific demographic is more responsive to her marketing efforts on Facebook compared to other platforms or age groups. By allocating more of her marketing budget to this targeted Facebook advertising, she can optimize her resources to reach the most responsive audience, thereby increasing her property listings more effectively.

To determine the appropriate conflict resolution strategy, consider the principles of effective communication, negotiation, and adherence to legal obligations in real estate transactions. The correct approach involves facilitating a dialogue that acknowledges both parties’ concerns and seeks a mutually beneficial solution, while ensuring compliance with Nova Scotia’s real estate laws and ethical standards. In this scenario, the broker should first ensure that all parties have a clear understanding of the issues at hand. By organizing a meeting or mediation session, the broker can guide the discussion towards identifying the specific repair concerns and the financial implications for both buyer and seller. The broker should encourage transparency, allowing each party to express their priorities and limitations. Next, the broker can help explore potential compromises, such as negotiating a reduction in the sale price to cover repairs or agreeing on splitting the repair costs. Additionally, the broker should ensure that any agreements reached are documented formally to prevent future misunderstandings. Throughout this process, maintaining impartiality and professionalism is crucial to building trust and facilitating an effective resolution. By focusing on open communication and collaborative problem-solving, the broker can help both parties reach an agreement that satisfies their respective needs while upholding the integrity of the transaction.

To determine the most effective strategy for creating a property listing that appeals to potential buyers and adheres to best practices for the Canada Nova Scotia Real Estate Broker Exam, we must evaluate each option based on key principles of effective property listing creation. The primary focus should be on presenting the property accurately, attractively, and comprehensively to generate interest and facilitate informed decision-making among buyers. (a) **Utilizing high-quality images and detailed descriptions to highlight key features.** This option aligns with best practices by ensuring that the listing is visually appealing and provides comprehensive information about the property. High-quality images capture the property’s aesthetics, while detailed descriptions inform buyers about specific features, enhancing the listing’s attractiveness and credibility. This approach helps potential buyers visualize the property and understand its unique selling points, which is crucial in a competitive market. (b) **Including only basic information to keep the listing concise.** While conciseness is valuable, limiting the information to only basic details may result in insufficient information for buyers to make informed decisions. This approach can detract from the property’s appeal and reduce the listing’s effectiveness in a competitive market where buyers are comparing multiple listings. (c) **Using exaggerated claims to attract more interest.** Exaggeration can lead to misrepresentation, which may attract buyers initially but can result in mistrust, legal issues, and a damaged reputation if the property does not meet the exaggerated promises. This is counterproductive and violates ethical standards, potentially leading to disciplinary actions. (d) **Focusing solely on the property’s price without mentioning other attributes.** Focusing only on the price neglects other essential aspects that buyers consider, such as location, size, features, and condition. A listing that emphasizes price alone may fail to capture the holistic value of the property, limiting its attractiveness to potential buyers who look for comprehensive information. Based on this analysis, option (a) is the most effective strategy for creating a compelling and compliant property listing.

In the appraisal process, selecting the appropriate valuation method is crucial to accurately determining a property’s market value. The three primary approaches are the Sales Comparison Approach, the Cost Approach, and the Income Approach. The Sales Comparison Approach is most effective in residential markets where there are numerous comparable sales, as it relies on recent, similar property transactions to estimate value. In the given scenario, the appraiser is dealing with a single-family home in a suburban area of Halifax, Nova Scotia, where there have been many recent sales of similar properties. Even though the subject property has unique architectural features, the abundance of comparable sales data makes the Sales Comparison Approach the most reliable method. This approach allows the appraiser to adjust for differences between the subject property and the comparables, ensuring the valuation reflects current market conditions. The Income Approach is generally more suitable for investment properties, and the Cost Approach is often used for new constructions or unique properties without comparable sales. Therefore, despite the unique features of the subject property, the Sales Comparison Approach remains the most appropriate choice to achieve an accurate and market-reflective appraisal.

In this scenario, the broker is aware of a structural defect in the property that is not obvious to the buyer. Under the legal obligations in Nova Scotia, the broker has a duty to disclose all material facts that could affect the buyer’s decision. Failure to disclose such information could constitute misrepresentation or fraud. Therefore, the broker must inform the buyer about the defect to comply with legal and ethical standards. This ensures transparency and protects both parties in the transaction.

To determine the correct answer, consider the relationship between GDP growth and housing market activity. A GDP growth rate of 2.5% indicates a healthy expanding economy in Nova Scotia. Economic growth typically leads to increased employment opportunities, higher consumer confidence, and greater disposable income among residents. This, in turn, can result in higher demand for housing as more individuals are financially capable of purchasing or upgrading their homes. Additionally, with GDP growth, businesses may invest more in commercial real estate, further stimulating the real estate market. Moreover, a decrease in the unemployment rate by 1% suggests that more people are employed and have steady incomes, which enhances their ability to afford mortgages and invest in property. Lower unemployment also reduces the risk of loan defaults, making lenders more willing to offer favorable mortgage terms. This combination of economic indicators—GDP growth and declining unemployment—typically leads to increased real estate transactions, higher property values, and a more competitive market for both buyers and sellers.

In Nova Scotia, conducting a thorough title search is crucial to identify any encumbrances, liens, or restrictions that may affect the property transfer. Suppose during a title search, it is discovered that the property has an existing lien due to unpaid property taxes. Before proceeding with the transfer, the broker must ensure that this lien is addressed to guarantee a clear title for the buyer. The correct procedure involves notifying the seller of the lien and requiring them to settle the outstanding taxes before the transfer can be completed. This step protects the buyer from inheriting any financial obligations related to the property and ensures that the title is free from encumbrances. Failing to address such issues could result in legal disputes or financial loss for the buyer. Therefore, the broker must prioritize resolving any title defects uncovered during the search to facilitate a smooth and legally sound transfer of ownership.

To determine the most effective strategy for revitalizing urban areas, it is essential to consider approaches that foster sustainable growth, community engagement, and economic development. Option (a) suggests implementing mixed-use development, which integrates residential, commercial, and recreational spaces. This strategy promotes walkability, reduces reliance on automobiles, and creates vibrant communities that can attract both residents and businesses. By blending different land uses, mixed-use developments can lead to increased property values, enhanced public spaces, and a diverse economic base, which are critical factors in urban revitalization. In contrast, options (b), (c), and (d) each address important aspects of urban development but may not provide the comprehensive benefits that mixed-use development offers. For instance, improving public transportation (option b) is crucial for accessibility but does not directly address land use diversity. Similarly, incentivizing private investment (option c) can stimulate economic activity but might lead to uneven development without careful planning. Enhancing green spaces (option d) contributes to environmental sustainability and quality of life but may not fully engage the economic and social dimensions necessary for widespread revitalization. Therefore, mixed-use development stands out as a holistic approach that effectively addresses multiple facets of urban revitalization, making it the most suitable strategy among the options provided.

To determine the market demand for eco-friendly properties in Nova Scotia, consider the following factors: consumer preferences, financial incentives, and environmental awareness. Suppose a study reveals that 70% of prospective homebuyers in Nova Scotia prioritize energy-efficient and sustainable features in their property searches. Additionally, the provincial government has introduced rebates and tax incentives for properties that meet certain green standards, effectively reducing the overall cost of purchasing eco-friendly homes. Furthermore, there is a growing societal emphasis on reducing carbon footprints and promoting sustainable living, which influences buyer decisions. Combining these elements, the data indicates a significant increase in demand for eco-friendly properties as buyers are motivated by both financial benefits and environmental responsibility. Therefore, the correct explanation integrates buyer preferences, economic incentives, and heightened environmental consciousness as primary drivers of increased market demand.

To determine the brokerage’s share of the commission, let’s break down the scenario step by step. 1. **Total Commission:** The seller agrees to a total commission of 6% on the property’s sale price. 2. **Distribution Between Agents:** Typically, this commission is split equally between the seller’s agent and the buyer’s agent. Therefore: – **Seller’s Agent:** 3% – **Buyer’s Agent:** 3% 3. **Brokerage Split:** The seller’s agent has a commission split arrangement with their employing brokerage, set at 70/30. This means: – **Seller’s Agent’s Portion:** 70% of their 3% commission = 0.70 * 3% = **2.1%** – **Brokerage’s Portion:** 30% of the seller’s agent’s 3% commission = 0.30 * 3% = **0.9%** 4. **Buyer’s Agent’s Commission:** The buyer’s agent receives their full 3% commission, typically going directly to their brokerage as per their own brokerage agreement. Summarizing: – **Seller’s Agent:** 2.1% – **Brokerage:** 0.9% – **Buyer’s Agent:** 3% – **Total Commission Distributed:** 6% Thus, the listing brokerage ultimately receives **0.9%** of the total commission from the sale. This calculation illustrates how commission structures and fee arrangements work in practice. Understanding the split between agents and their brokerages is crucial for brokers to effectively manage their revenue and for agents to comprehend their earnings. The 70/30 split is a common arrangement, but variations exist depending on the brokerage’s policies. Additionally, recognizing that the buyer’s agent’s commission is separate and typically goes entirely to their brokerage (unless otherwise arranged) helps in comprehensively understanding the distribution of commissions in real estate transactions.

The correct answer is option (a). In this scenario, Sarah has a fiduciary duty to both her client (the seller) and to other parties involved, including the buyer. Under Nova Scotia’s real estate regulations, brokers are required to act with honesty, integrity, and full disclosure. When Sarah becomes aware of the foundation issues, she must disclose this material fact to the buyer to ensure that the transaction is transparent and fair. Failing to disclose such significant information could lead to legal repercussions, damage her professional reputation, and violate the ethical standards set by the Nova Scotia Association of Realtors®. Additionally, ethical guidelines prioritize the buyer’s right to be fully informed about the property’s condition, ensuring they can make an educated decision. By immediately disclosing the issues and informing the seller of the ethical implications, Sarah upholds her professional responsibilities and maintains trust in her professional relationships. The other options present unethical approaches: advising the seller to downplay the issues compromises transparency, ignoring the buyer’s concerns neglects her duty of honesty, and suggesting the buyer waive inspection contingencies pressures the buyer into a potentially unfair situation. These alternatives could result in legal consequences and professional disciplinary actions against Sarah.