Humber/Ontario Real Estate Course 2 Exam Practice

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Prepare for the Ontario Real Estate Exam with our comprehensive Humber Course 2 Exam Practice quiz. Engage with multiple choice questions and detailed explanations, designed to help you excel.

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Which statement regarding stigmas in real estate is incorrect?

Stigmas can affect property values due to perceived risks.
Salespersons must disclose all stigmas by law to potential buyers.
Stigmas are intangible and difficult to assess their impact on value.
Properties with stigmas may take longer to sell.
Some stigmas can have an emotional impact on potential buyers.
Stigmas may not always have a visible impact on the physical condition of the property.

The correct answer is: Salespersons must disclose all stigmas by law to potential buyers.

In real estate, stigmas refer to factors such as a property being rumored to be haunted, having been the site of a crime, or having a previous notorious owner. While it is essential for real estate professionals to be honest and forthcoming about material facts related to a property, including any stigmas that might affect its value, the statement that salespersons must disclose all stigmas by law to potential buyers is incorrect. In Ontario, salespersons are not legally required to disclose stigmas to potential buyers unless they have a direct impact on the physical condition of the property. Stigmas that are not related to the property's physical condition are generally considered subjective and may be left to the buyer to investigate further if desired. It's crucial to be transparent and provide accurate information, but in the context of stigmas, the responsibility lies in disclosing material facts that directly affect the property itself.