Humber/Ontario Real Estate Course 3 Exam Practice

What must a brokerage disclose to a buyer client about a property previously used as an illegal grow house?

1. Must be disclosed to a buyer client viewing the property.

2. Need not be disclosed to the potential buyer, unless the previous use is widely known in the community.

3. Need only be disclosed if the client specifically asks about whether or not the property has been used for such an operation.

4. Is not a relevant point of discussion with a buyer customer, if any visual evidence of the previous operation have been eliminated and new carpets laid throughout.

5. It should be disclosed to the brokerage when the property is listed.

6. Does not need to be disclosed unless local regulations specifically require it.

The correct answer is: Must be disclosed to a buyer client viewing the property.

In this scenario, the correct answer is A. The brokerage must disclose to a buyer client that the property was previously used as an illegal grow house when the buyer is viewing the property. This information is crucial for the buyer as it may affect their decision-making process and willingness to proceed with the purchase. It is essential to provide full transparency and disclose any material facts that could impact the property's value or desirability. Options B, C, D, E, and F are incorrect because they suggest either not disclosing the information unless specifically asked, only disclosing if visible evidence remains, only disclosing to the brokerage when the property is listed, or suggesting that local regulations dictate the need for disclosure. However, in a situation where a property was previously used as an illegal grow house, it is crucial for the brokerage to disclose this information to the buyer client during the viewing to ensure transparency and allow the buyer to make an informed decision.