Humber/Ontario Real Estate Course 3 Exam Practice

How should a salesperson advise a buyer client questioning potential environmental issues with a commercial lot?

1. Advise that environmental contamination isn't a concern.

2. Recommend a full environmental assessment for assurance.

3. Include condition for expert advice in the offer.

4. Remain silent as they lack knowledge on environmental matters.

5. Ask the seller to provide environmental clearance documentation.

6. Inform the buyer that urban lots usually don't have contamination.

The correct answer is: Include condition for expert advice in the offer.

The most appropriate course of action for a salesperson advising a buyer client about potential environmental issues with a commercial lot is to recommend including a condition for expert advice in the offer. This approach effectively protects the buyer's interests by ensuring that they have the opportunity to receive a professional assessment regarding the environmental status of the property before finalizing the purchase. It acknowledges the complexity of environmental issues and the need for specialized knowledge, which goes beyond the salesperson's expertise. In real estate transactions, especially involving commercial lots where environmental issues might be significant, relying solely on general knowledge or assumptions about the property can be risky. Including a condition for expert advice allows for thorough due diligence, enabling the buyer to make an informed decision based on concrete information rather than speculation. The other options present varying levels of inadequacy in addressing the buyer's concerns. For instance, advising that environmental contamination isn't a concern could lead to serious repercussions if environmental issues are later discovered. Similarly, remaining silent reflects a lack of professionalism and does not serve the buyer’s best interests. Asking the seller for environmental clearance documentation may provide some information but does not assure thorough investigation or validation of that documentation.