Humber/Ontario Real Estate Course 3 Exam Practice

What is the responsibility of a salesperson regarding disclosure of material facts to a seller client?

1. There is no distinction between clients and customers.

2. Only known or should-have-known material facts must be disclosed to customers.

3. Research-required material facts do not need to be disclosed.

4. Widely known and accepted material facts need not be disclosed.

5. All material facts must be disclosed to clients.

6. Material facts disclosed by the seller require no further discussion.

The correct answer is: All material facts must be disclosed to clients.

The responsibility of a salesperson regarding the disclosure of material facts to a seller client emphasizes the principle that all material facts must be disclosed. This means that the salesperson has an obligation to communicate any information that could influence a buyer’s decision or the value of the property. This responsibility is rooted in the fiduciary duty that agents owe to their clients, which includes loyalty, full disclosure, and acting in the best interests of the client. Disclosing all material facts helps to ensure transparency in the transaction, promoting trust between the parties and fostering a fair real estate environment. It also protects the salesperson from potential legal liabilities that may arise from failing to provide essential information that the seller might need to know. The other options suggest limitations or exceptions to the duty of disclosure, which do not align with the ethical and legal obligations that salespersons have towards their clients. By understanding the necessity of disclosing all material facts, salespersons can better serve their clients' interests and promote ethical sales practices within the industry.