Humber/Ontario Real Estate Course 3 Exam Practice

What is a salesperson's obligation if asked about a property defect known only to them?

1. Disclose the defect to potential buyers.

2. Keep the defect confidential to protect the seller's interest.

3. Mention the defect only if directly asked by the buyer's agent.

4. Advise the buyer to perform their own inspection.

5. Refer the buyer to another salesperson with more experience.

6. Disclose the defect only if it impacts the property value.

The correct answer is: Disclose the defect to potential buyers.

The obligation of a salesperson to disclose a property defect known only to them is fundamentally rooted in ethical practices and legal requirements in real estate transactions. Disclosing the defect to potential buyers is essential for maintaining transparency and trust in the real estate process. This practice not only protects the buyer's rights but also upholds the integrity of the real estate profession. When a salesperson is aware of a defect, and it has not been disclosed by the seller or is not publicly known, they have a duty to inform potential buyers. This disclosure is vital in preventing future disputes or legal ramifications that may arise if the buyer later discovers the defect after purchase. Real estate professionals are expected to act in the best interests of all parties involved and to ensure that buyers can make informed decisions based on complete information. The other options presented do not align with the ethical and legal standards expected in the industry. Keeping defects confidential or only disclosing them under specific circumstances can lead to significant issues, including breach of trust, possible legal action, and reputational damage. It is crucial for salespersons to recognize their responsibility to foster a fair and honest transaction environment.