Humber/Ontario Real Estate Course 2 Exam Practice

What should a salesperson disclose to a buyer customer about a property near a regulated conservation area with stringent building permit requirements?

1. Disclose that the conservation authority reviews all permits and may reject new construction

2. No disclosure is required as it is the buyer's responsibility

3. Only disclose to buyer clients, not customers

4. Follow seller's instructions and keep information confidential

5. Obtain permission from the conservation authority first

6. Never disclose such information without legal advice

The correct answer is: Disclose that the conservation authority reviews all permits and may reject new construction

The correct answer is A because it is crucial for a salesperson to disclose to a buyer customer that a property is near a regulated conservation area with stringent building permit requirements. By disclosing this information, the buyer is made aware that any construction or alterations to the property will need to be approved by the conservation authority, potentially resulting in delays or rejections. This transparency is essential in ensuring that the buyer has all the necessary information to make an informed decision about the property. Options B, C, D, E, and F are incorrect: - Option B stating that no disclosure is required as it is the buyer's responsibility is incorrect because it is the responsibility of the salesperson to provide material facts about the property to the buyer customer. - Option C suggesting that disclosure should only be made to buyer clients, not customers, is incorrect as all relevant information should be disclosed to any potential buyer, regardless of their classification. - Option D advising to follow the seller's instructions and keep information confidential is incorrect because the salesperson's primary duty is to act in the best interest of the buyer, not the seller. - Option E stating to obtain permission from the conservation authority first is incorrect because the salesperson should disclose the existing requirements to the buyer, not seek permission on their behalf. - Option F stating to never disclose such information without legal advice is incorrect because it is the responsibility of the salesperson to disclose material facts to the buyer customer.