Humber/Ontario Real Estate Course 3 Exam Practice

Which is not a true statement regarding homeowner due diligence for a property listing?

1. Ignorance about Urea Formaldehyde Foam Insulation is acceptable since it was banned in the 1980s.

2. Advise contacting a certified contractor for guidance if an unused underground fuel storage tank is suspected.

3. Address existing asbestos only if it is airborne, e.g., included in floor tiles within a house.

4. Environmental hazards must always be disclosed regardless of their airborne status.

5. Ensure that lead contamination is only of concern if lead plumbing pipes were used.

6. All environmental hazards on the property should be evaluated by a qualified professional.

The correct answer is: Ignorance about Urea Formaldehyde Foam Insulation is acceptable since it was banned in the 1980s.

The statement indicating that ignorance about Urea Formaldehyde Foam Insulation (UFFI) is acceptable because it was banned in the 1980s is not true because homeowners must remain informed about all potential environmental hazards, regardless of their historical context or legal status. Even though UFFI was banned for health concerns related to its off-gassing of formaldehyde, its potential presence in older homes means that homeowners should be aware of it. Proper due diligence requires that sellers disclose any such materials in their properties to ensure buyers can make informed decisions and understand any ongoing safety concerns. Due diligence involves a proactive approach to identifying and managing potential hazards. Therefore, assuming that ignorance is acceptable due to the age of the material can lead to serious implications, including health risks and legal liabilities. The other statements emphasize the importance of professional evaluations and the necessity of disclosing environmental hazards, reflecting the requirement for thorough due diligence in real estate transactions.