Humber/Ontario Real Estate Course 3 Exam Practice

In the case of potential zoning changes, what must Salesperson Slater do regarding material facts?

1. Direct clients to municipality offices for zoning rules

2. Not mention zoning changes as plans might not be final

3. Disclose material facts to the client

4. Withhold zoning information until the client asks explicitly

5. Recommend speaking to legal advisors about zoning

6. Ignore zoning concerns unless the client expresses worry

The correct answer is: Disclose material facts to the client

The correct answer is that Salesperson Slater must disclose material facts to the client. In real estate, material facts are any information that could influence a buyer's decision regarding a property. Zoning changes are significant because they can affect property use, value, and future development options. A salesperson has a duty to keep clients fully informed about any pertinent details, including potential changes to zoning regulations. By disclosing potential zoning changes, Salesperson Slater is ensuring that clients have all necessary information to make informed decisions. This aligns with the obligation of real estate professionals to act in their clients' best interests and maintain transparency throughout the transaction process. While some of the other options may involve aspects of handling zoning information, they do not fulfill the requirement for full disclosure. For instance, directing clients to municipality offices can provide additional information but does not replace the salesperson's obligation to inform their clients directly. Similarly, withholding information until a client asks contradicts the responsibility of a professional to proactively share all material facts. Recommendations to legal advisors or ignoring concerns would also fall short of the duty to disclose, as they would either push the responsibility away or minimize the importance of the issue at hand.