Humber/Ontario Real Estate Course 2 Exam Practice

What action should be taken if a property being listed has an unpermitted structure?

1. Request a municipal inspection.

2. Assume it's legal if no complaints have been registered.

3. Include the unpermitted structure conditionally in the sale offer.

4. Inform the buyer to check the legality.

5. Remove the structure before listing.

6. Advertise the property without mentioning the structure.

The correct answer is: Include the unpermitted structure conditionally in the sale offer.

If a property being listed has an unpermitted structure, the correct action to take is to include the unpermitted structure conditionally in the sale offer. This approach ensures transparency between the seller and potential buyers regarding the existence of the unpermitted structure. By including it as a condition in the sale offer, the buyer is made aware of the issue and can decide whether they are comfortable proceeding with the purchase knowing the situation with the structure. It also protects both parties legally by addressing the unpermitted structure upfront and including it in the contract. Option A (Request a municipal inspection) may be necessary in some cases, but it should not replace disclosing the unpermitted structure in the sale offer. Option B (Assume it's legal if no complaints have been registered) is not a safe or ethical practice as it could lead to legal issues down the line. Option D (Inform the buyer to check the legality) puts the burden on the buyer, which is not ideal when transparency and honesty are important in real estate transactions. Option E (Remove the structure before listing) may not be feasible or cost-effective. Option F (Advertise the property without mentioning the structure) is misleading and does not align with disclosure regulations in real estate.