Humber/Ontario Real Estate Course 2 Exam Practice

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Prepare for the Ontario Real Estate Exam with our comprehensive Humber Course 2 Exam Practice quiz. Engage with multiple choice questions and detailed explanations, designed to help you excel.

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A buyer relies on a seller's inaccurate statement about water leakage in a property information statement (SPIS), skips an inspection, and later discovers damage. Which option summarizes the legal perspective?

Buyer avoids inspection; seller isn't liable for future costs.
Inspection is mandatory, buyer's choice invalidated.
Disclosure statements hold no legal status.
Seller liable for costs due to inaccuracies in SPIS.
Buyer's reliance on SPIS nullifies any complaint.
Legal action against seller is invalid outside mandatory inspections.

The correct answer is: Seller liable for costs due to inaccuracies in SPIS.

In this scenario, the correct answer is D. According to the legal perspective in Ontario, when a buyer relies on a seller's inaccurate statement about water leakage in a Property Information Statement (SPIS), the seller can be held liable for the costs resulting from the inaccuracies provided in the SPIS. Sellers have a legal obligation to provide accurate information in the SPIS to avoid misrepresentation and potential liability for damages incurred by the buyer. Buyers have the right to rely on the information disclosed by the seller, and if that information is inaccurate, the seller can be held responsible for any resulting costs or damages.