Humber/Ontario Real Estate Course 2 Exam Practice

What is the correct action for a real estate agent if a buyer wants to make an offer on a property with known zoning violations?

1. Proceed with the offer without any disclosures.

2. Advise the buyer to fix the violations after purchase.

3. Ensure all zoning violations are disclosed to the buyer before proceeding.

4. Ignore the zoning violations if the purchase price is lucrative.

5. Report the violations to local authorities before proceeding.

6. Proceed only if the seller agrees to correct the violations before closing.

The correct answer is: Ensure all zoning violations are disclosed to the buyer before proceeding.

In real estate transactions, it is crucial for the agent to uphold transparency and act in the best interest of their clients. When a buyer wants to make an offer on a property with known zoning violations, the correct action for a real estate agent is to ensure that all zoning violations are disclosed to the buyer before proceeding. This is important as it informs the buyer of any potential issues or liabilities associated with the property, allowing them to make an informed decision. By providing full disclosure, the agent helps protect the buyer from any potential legal or financial repercussions that may arise from the zoning violations. Options A, B, D, and F are not advisable courses of action. Proceeding without disclosing the violations, advising the buyer to fix them after purchase, ignoring the violations for a lucrative price, or only proceeding if the seller agrees to correct the violations are all ethically and legally questionable practices in real estate transactions. Reporting the violations to local authorities before proceeding, as mentioned in option E, may also be necessary in some cases; however, the immediate responsibility of the agent in this situation is to disclose the violations to the buyer to ensure transparency and informed decision-making.