Humber/Ontario Real Estate Course 2 Exam Practice

From a real estate salesperson's point of view, what is the most cautious way to handle disclosure concerning a stigma?

1. Discuss the issue openly with a buyer client.

2. Only disclose stigma if the client views it as a material fact.

3. Disclose only if the stigma is widely known.

4. Keep stigmas undisclosed as they are intangible.

5. Only mention stigma if the client inquires about it.

6. Refer the client to another agent's viewpoint.

The correct answer is: Discuss the issue openly with a buyer client.

From a real estate salesperson's point of view, discussing the issue openly with a buyer client is the most cautious way to handle disclosure concerning a stigma. This approach ensures transparency and honesty in the transaction, which is essential to building trust with clients and avoiding any potential legal issues. By openly discussing the stigma, the salesperson can provide all relevant information to the client, allowing them to make an informed decision based on their personal preferences and concerns. Options B, C, D, E, and F are not the most cautious ways to handle disclosure concerning a stigma. Option B suggests only disclosing if the client views it as a material fact, which may not always align with legal requirements. Option C implies disclosing only if the stigma is widely known, which may not fully inform the client. Option D advises keeping stigmas undisclosed, which is not transparent. Option E recommends mentioning stigma only if the client asks, which may not provide enough information for an informed decision. Option F suggests referring the client to another agent, which does not fulfill the salesperson's responsibility to handle disclosure.