Humber/Ontario Real Estate Course 2 Exam Practice

What must be disclosed about a stigmatized property?

1. The neighbour’s opinion about the property

2. The number of previous owners

3. Material facts affecting the value or desirability

4. The buyer’s potential to personal preference

5. The state of cleanliness of the house

6. The presence of any pets

The correct answer is: Material facts affecting the value or desirability

When it comes to disclosing information about a stigmatized property, it is essential to disclose material facts affecting the value or desirability of the property. Stigmatized properties refer to properties that may have psychological or emotional issues attached to them, such as a murder or suicide that occurred on the premises, or purported haunting. These types of factors could significantly impact a buyer's decision to purchase the property, hence it is crucial to disclose these material facts to potential buyers so they can make informed decisions. Disclosure of the neighbor’s opinion, the number of previous owners, the buyer’s potential personal preference, the state of cleanliness of the house, or the presence of pets are generally not considered material facts that directly affect the value or desirability of the property and, therefore, do not require disclosure in the same way as stigmatized property issues do.