Humber/Ontario Real Estate Course 2 Exam Practice

Regarding a designated heritage home, which statement is correct?

1. The fact that the home is a heritage home does not have to be included in details provided with the seller representation agreement, when listing the property.

2. The home only remains a heritage home, as long as the current owner owns the property.

3. Fire insurance premiums are usually reduced when the existing policy is renewed, as the home is designated as a heritage property.

4. The owner may incur additional costs when undertaking renovations to ensure compliance with heritage requirements.

The correct answer is: The owner may incur additional costs when undertaking renovations to ensure compliance with heritage requirements.

In a designated heritage home, the owner may indeed incur additional costs when undertaking renovations to ensure compliance with heritage requirements. This is because heritage homes are subject to specific regulations and guidelines aimed at preserving their historical and architectural significance. Renovations must often be approved and conducted in a manner that preserves the heritage features of the home, which can result in additional expenses for the owner. Regarding the other options: A. The fact that the home is a designated heritage property is an important detail that should be included in the details provided in the seller representation agreement, as it is a material fact that could potentially impact the sale of the property. B. The status of being a heritage home is not tied to the ownership of the property; it is based on the designated heritage status of the property itself, regardless of ownership changes. C. While fire insurance premiums could potentially be affected by the designation of a property as a heritage home, there is no guarantee that premiums will be reduced, as this will depend on various factors related to the individual property and insurance provider.