Humber/Ontario Real Estate Course 2 Exam Practice

What should be done when a latent defect is discovered in a property being sold?

1. Immediately have a home inspection included.

2. Alert the seller and buyer's agents promptly.

3. Have the defect repaired before listing the property.

4. Include a remediation clause in the offer.

5. Mandate a visual inspection by the buyer.

6. Perform an informal investigation instead of a formal inspection.

The correct answer is: Immediately have a home inspection included.

When a latent defect is discovered in a property being sold, it is crucial to immediately have a home inspection included. This is the correct course of action because a home inspection by a professional can thoroughly assess the extent and impact of the latent defect. By having a professional home inspection, both the seller and the buyer can gain a comprehensive understanding of the issue and determine the best steps moving forward, such as negotiating repairs or adjusting the sale price. Alerting the seller and buyer's agents promptly, as stated in option B, is also important in order to ensure transparency and to facilitate communication between all parties involved in the transaction. Having the defect repaired before listing the property, including a remediation clause in the offer, mandating a visual inspection by the buyer, and performing an informal investigation instead of a formal inspection, as mentioned in options C, D, E, and F, are not the immediate actions to take when a latent defect is discovered. These options either do not address the issue effectively or may not provide the necessary professional assessment to understand the implications of the defect accurately.