Humber/Ontario Real Estate Course 2 Exam Practice

In advising a client concerned about insuring an old home with outdated wiring, what should a salesperson recommend?

1. Assure the client that age and outdated wiring are not concerns for fire insurance.

2. Explain that older homes with outdated wiring cannot be insured.

3. Inform that age might be a problem, but outdated wiring is not when acquiring insurance.

4. Suggest including a condition in the agreement for sufficient time to investigate insurance matters.

5. Assure the client outdated wiring won't affect insurance possibilities.

6. Recommend immediate insurance application irrespective of wiring conditions.

The correct answer is: Suggest including a condition in the agreement for sufficient time to investigate insurance matters.

When advising a client concerned about insuring an old home with outdated wiring, it is important to recommend including a condition in the agreement for sufficient time to investigate insurance matters. This is the correct answer because it allows the client to have the necessary time to assess the insurance options available for a property with outdated wiring. By including such a condition, the client can make an informed decision based on the insurance requirements and potential risks associated with the property. The other options are incorrect for the following reasons: - Option A is incorrect because age and outdated wiring can indeed be concerns for fire insurance. - Option B is incorrect as older homes with outdated wiring can still be insured, but the terms and conditions may vary. - Option C is incorrect as outdated wiring can be a potential problem when acquiring insurance, and it should not be downplayed. - Option E is incorrect because outdated wiring can affect insurance possibilities and should not be assured otherwise. - Option F is incorrect as recommending immediate insurance application without considering the wiring conditions can lead to potential issues and risks for the client.