Humber/Ontario Real Estate Course 3 Exam Practice

When showing a home near a watershed, what is the salesperson's responsibility to a buyer customer?

1. Disclose that conservation authority reviews permit applications

2. No disclosure needed; buyer must verify independently

3. Only disclose to a buyer client

4. Follow seller's instructions and not disclose any information

5. Disclose only if asked about permits

6. Refer the buyer to the conservation authority

The correct answer is: Disclose that conservation authority reviews permit applications

A salesperson has a responsibility to ensure that buyers are fully informed about potential concerns related to properties, especially those near sensitive areas like watersheds. One critical aspect is that conservation authorities play a significant role in reviewing permit applications to protect these environments. By disclosing that conservation authorities review permit applications, the salesperson provides essential information that can impact the buyer’s decisions regarding property development, use, and environmental compliance. This disclosure helps the buyer understand that there are regulatory processes in place that could affect their rights or plans for the property. By knowing about the involvement of conservation authorities, buyers can better navigate their expectations and ensure they comply with environmental regulations before making a purchase. In contrast, neglecting to provide this important information—or suggesting that no disclosure is needed—would leave the buyer at a disadvantage, potentially leading them into situations that could result in legal or financial complications later. Thus, understanding the regulatory framework surrounding properties near watersheds is a crucial element in a real estate transaction, underlining the importance of the salesperson's role in facilitating informed decision-making for buyers.