Humber/Ontario Real Estate Course 3 Exam Practice

If a salesperson notices potential structural damage while measuring a property, what must be done?

1. No need for further action if the seller dismisses the issue.

2. Inform the seller of possible liability if the issue is not disclosed to buyers.

3. Ignore the issue if similar cracks are common in the area.

4. Not list the property given the potential structural problem.

5. Report the issue to municipal authorities for action.

6. Address the issue only if it worsens before closing.

The correct answer is: Inform the seller of possible liability if the issue is not disclosed to buyers.

The correct choice emphasizes the obligation of real estate professionals to act ethically and responsibly when they encounter potential structural issues in a property. Informing the seller about the potential liability associated with failing to disclose these issues to buyers is critical. Sellers have a legal duty to disclose known defects that could affect the property's value or desirability. By making the seller aware of the implications of not disclosing this potential damage, the salesperson ensures that the seller can make informed decisions and protect themselves from future legal ramifications, such as lawsuits from buyers who may later discover these issues. This course of action reinforces the idea of transparency in real estate transactions, which is essential for maintaining trust and legality in the industry. By focusing on transparency and communication with the seller regarding potential liabilities, real estate salespersons uphold ethical standards, advocating for the protection of all parties involved in the transaction. This approach helps create a more trustworthy real estate environment, fostering responsible practices in the industry.