Humber/Ontario Real Estate Course 2 Exam Practice

What must a broker do when a structural issue is discovered by an inspector during a buyer's home inspection?

1. Ignore the issue if it is minor.

2. Disclose the issue to the buyer immediately.

3. Recommend that the seller repairs it before closing.

4. Advise the buyer to walk away from the transaction.

5. Wait until further inspections are conducted before disclosing.

6. Negotiate a lower price due to the defect without informing the buyer.

The correct answer is: Disclose the issue to the buyer immediately.

When a structural issue is discovered by an inspector during a buyer's home inspection, the correct course of action for the broker is to disclose the issue to the buyer immediately. This is essential for the buyer to be fully informed about the condition of the property they are purchasing. By promptly sharing this information, the broker upholds their duty to act in the best interest of their client and ensures transparency throughout the transaction process. Option A is incorrect because even if the issue seems minor, it is important to disclose all findings to the buyer for their consideration. Option C might not be the best immediate course of action as recommending repairs to the seller before closing can vary depending on the situation, but the immediate responsibility lies in informing the buyer. Option D could be premature before exploring potential solutions with the seller, and it is crucial to keep the buyer informed before advising them to walk away. Option E suggests delaying disclosure, which goes against the principle of timely and transparent communication between the broker and the buyer. Option F is not appropriate as the broker should not negotiate a lower price without informing the buyer of the structural defect first.