Humber/Ontario Real Estate Course 3 Exam Practice

If a client does not wish to have their home classified under heritage status, what financial implication might they avoid?

1. Increased insurance premiums

2. Higher renovation compliance costs

3. Special listing agreement requirements

4. Loss of potential buyers

The correct answer is: Higher renovation compliance costs

By not having their home classified under heritage status, the client might avoid higher renovation compliance costs. When a property is designated as a heritage site, there are often strict regulations and requirements in place to ensure that any renovations or changes made to the property are in line with preserving its historical and architectural significance. These compliance costs can add up significantly and may limit the flexibility that homeowners have in modifying their property. Options A, C, and D are incorrect: A. Increased insurance premiums: While having a heritage status may impact insurance premiums for a property due to its historical value and potential higher replacement costs, this is not a direct financial implication that a client would avoid by not having their home classified under heritage status. C. Special listing agreement requirements: This is not a direct financial implication that a client would avoid by not having their home classified under heritage status. Special listing agreement requirements would relate more to the terms and conditions of listing the property for sale. D. Loss of potential buyers: While some buyers may be specifically looking for heritage properties, the loss of potential buyers is not a direct financial implication that a client would avoid by not having their home classified under heritage status.