Humber/Ontario Real Estate Course 3 Exam Practice

What best describes the duty of a Salesperson aware of a latent defect when showing a property to a buyer client?

1. A Salesperson is not obligated to disclose the defect as it is common knowledge.

2. A Salesperson should refrain from mentioning since they are not an expert.

3. A Salesperson should disclose the defect to the buyer client.

4. A Salesperson should advise the buyer to get a property inspection.

The correct answer is: A Salesperson should disclose the defect to the buyer client.

The correct response is rooted in the legal and ethical responsibilities that a salesperson holds towards their client, particularly regarding latent defects—issues that are not readily apparent and may affect the value or enjoyment of a property. When a salesperson becomes aware of such a defect, it is imperative that they disclose this information to the buyer client. This duty of disclosure helps to protect the interests of the buyer, allowing them to make informed decisions about the property. Transparency in real estate transactions fosters trust and maintains the integrity of the profession. By disclosing the latent defect, the salesperson upholds their fiduciary duty and ensures that the buyer is fully aware of any potential issues that may require attention or impact their future investment in the property. This proactive approach can also help mitigate any legal repercussions that may arise if the defect is later discovered and was not disclosed by the salesperson. The other options do not sufficiently safeguard the interests of the buyer or adhere to the expected professional standards in real estate dealings. They could lead to situations where important information is withheld from the buyer, potentially resulting in dissatisfaction or financial loss down the line.