Humber/Ontario Real Estate Course 3 Exam Practice

If a buyer finds UFFI in a property after a transaction concludes, which was installed during the seller's ownership, what can they do?

1. The seller isn't liable since it was found post-closing; their warranty only covers up to closing.

2. The seller provided a conflicting warranty which could lead to legal action for damages.

3. The buyer is responsible for removing the UFFI, with no legal recourse against the seller.

4. Action against the seller is not possible since UFFI isn't banned.

5. The buyer can demand immediate removal of UFFI from the seller.

6. Seller must reimburse the buyer for removal costs immediately.

The correct answer is: The seller provided a conflicting warranty which could lead to legal action for damages.

The correct choice highlights that if the seller provided a conflicting warranty regarding the presence of UFFI (urea-formaldehyde foam insulation), the buyer may have grounds for legal action based on that warranty. A warranty implies a level of assurance about the property’s condition or specific characteristics prior to the sale. If the warranty stated that UFFI was not present or disclosed its potential issues, and the buyer later discovers UFFI, this conflicting representation could constitute a breach of contract or misrepresentation. In such scenarios, the buyer might argue that the seller failed to disclose critical information that could affect the property's value or safety, thus justifying a claim for damages. Legal recourse may involve seeking compensation for removal expenses or any decrease in property value caused by the presence of UFFI. This emphasizes the importance of full disclosure from sellers in real estate transactions and protects buyers from unforeseen liabilities that could arise post-closing.