Humber/Ontario Real Estate Course 2 Exam Practice

What should be disclosed about a property known to have been used as an illegal grow house?

1. A buyer client viewing the property must be informed.

2. A potential buyer need not be informed unless the previous use is widely known in the community.

3. The property’s history needs to be disclosed only if asked by the client.

4. If visual evidence has been removed and new carpets laid, it does not need to be disclosed.

5. It only needs to be disclosed if it affects the structural integrity of the property.

6. The disclosure depends on the length of time since the property was last used as a grow house.

The correct answer is: A buyer client viewing the property must be informed.

When a property is known to have been used as an illegal grow house, it is essential to disclose this information to potential buyers. This information can significantly impact a buyer's decision-making process and their ability to secure financing or insurance for the property. By informing a buyer client who is viewing the property about its history as an illegal grow house, you are ensuring transparency and honesty in the transaction. This disclosure also helps buyers to make an informed decision about whether they are comfortable with the property's prior use and any potential risks associated with it. Options B, C, D, E, and F are incorrect because they either suggest that disclosure is not necessary or imply conditions under which disclosure may be avoided. However, in real estate transactions, especially when it comes to a property's history of illegal activities like being used as a grow house, it is crucial to err on the side of caution and disclose this information to avoid any legal or ethical issues down the line.