Humber/Ontario Real Estate Course 2 Exam Practice

What must be disclosed when a registrant has an interest in a property being transacted?

1. The disclosure is required only when the property is purchased, not sold.

2. The notice needs to fully disclose all facts that affect the property's value.

3. The requirement does not apply if the property is purchased by a corporation owned by the registrant.

4. The requirement does not apply if the property is not listed with the brokerage.

5. The notice must disclose the intended use of the property.

6. The disclosure applies only if the property is used for commercial purposes.

The correct answer is: The notice needs to fully disclose all facts that affect the property's value.

When a registrant has an interest in a property being transacted, it is vital to provide a full disclosure that includes all facts affecting the property's value. This is to ensure transparency and protect the interests of the clients involved in the transaction. Providing incomplete or partial information could lead to legal issues and a breach of trust with the parties involved. Therefore, fully disclosing all relevant facts that could impact the property's value is crucial in maintaining ethical standards and avoiding conflicts of interest. Option A is incorrect because disclosure is necessary regardless of whether the property is being purchased or sold. Option C is incorrect because having a corporate entity owned by the registrant does not exempt them from the disclosure requirement. Option D is incorrect because the obligation to disclose does not depend on whether the property is listed with the brokerage or not. Option E is incorrect as the disclosure is focused on facts that affect the property's value, not just its intended use. Option F is incorrect because the disclosure requirement applies irrespective of whether the property is used for commercial or residential purposes.