Humber/Ontario Real Estate Course 3 Exam Practice

What is a crucial requirement when a seller instructs a salesperson not to disclose a property's seasonal issues?

1. Comply because it’s not a recurring problem

2. Obtain written consent before disclosing

3. Explain that full disclosure of material facts is mandatory

4. Seek brokerage advice on the matter

5. Disclose only if the issue is mentioned during negotiations

6. Request a waiver of disclosure from the seller

The correct answer is: Explain that full disclosure of material facts is mandatory

The correct response emphasizes the critical principle of full disclosure in real estate transactions. Salespersons have a legal and ethical obligation to disclose material facts about a property, including seasonal issues that could impact a buyer's decision. This obligation exists regardless of the seller's instructions to withhold such information. Transparency is essential in the real estate profession, as it protects both the buyer and the integrity of the transaction. By explaining that full disclosure of material facts is mandatory, the salesperson ensures that they adhere to the legal requirements and maintain ethical standards. This also helps to foster trust in the transaction process, safeguarding both the interests of buyers and the reputation of real estate professionals. Considering the other options, some suggest actions that do not align with the mandatory disclosure principles: simply complying with the seller's wishes would jeopardize the buyer's right to know essential property information. Seeking brokerage advice or requesting a waiver may be prudent in some situations, but they do not replace the necessity of full disclosure. Disclosing only during negotiations does not meet the obligation either, as it is critical to inform potential buyers well before negotiations begin.