Humber/Ontario Real Estate Course 2 Exam Practice

A seller is aware of notched joists due to a renovation but has not disclosed it. What is the salesperson's obligation?

1. The seller is not required to disclose, as no problems are reported.

2. The salesperson must disclose, as it constitutes a material latent defect.

3. The issue is considered a patent defect not needing disclosure.

4. Buyers should fully investigate the property themselves.

5. The salesperson should disclose, as it is a cosmetic issue.

6. The issue should not be disclosed if the seller cannot afford repairs.

The correct answer is: The salesperson must disclose, as it constitutes a material latent defect.

In this scenario, the correct answer is B. The salesperson must disclose that the seller is aware of notched joists due to a renovation because it constitutes a material latent defect. A latent defect is a hidden issue that may not be easily discovered during a typical property inspection but could have a significant impact on the property's value or safety. By not disclosing the presence of notched joists, which could weaken the structural integrity of the property, the seller and the salesperson could be misleading potential buyers and exposing themselves to legal risks. It is essential for the salesperson to be transparent about any known material latent defects to ensure that buyers have all the relevant information to make an informed decision about purchasing the property. The options A, C, D, E, and F are not the correct answers because they do not address the specific situation of a material latent defect like notched joists.