Humber/Ontario Real Estate Course 3 Exam Practice

Salesperson Fernandez is aware of a hidden defect in a condo unit. A buyer asks if there are any issues. What should Fernandez do?

1. Fernandez should inform the buyer about the window leakage.

2. Fernandez should suggest the buyer get an inspection to reveal any defects.

3. Fernandez should refrain from mentioning it since he is not an expert.

4. Fernandez isn't obligated to mention anything, as such issues are common in the building.

The correct answer is: Fernandez should inform the buyer about the window leakage.

In this scenario, the best course of action for Salesperson Fernandez is to disclose the hidden defect he is aware of regarding the window leakage. Real estate professionals have a legal and ethical obligation to disclose known issues that could affect the buyer's decisions. This principle is grounded in the concepts of honesty and transparency in real estate transactions. When a buyer specifically inquires about any issues related to the property, it is crucial for the salesperson to provide truthful information. By revealing the defect, Fernandez is not only protecting the buyer's interests but also ensuring compliance with the law, potentially avoiding future liability for failing to disclose the issue. In contrast, suggesting that the buyer get an inspection may be seen as insufficient because it does not directly address the known defect that Fernandez is aware of. While inspections are valuable, they do not replace the obligation to disclose known issues. Refraining from mentioning the defect because he is not an expert is misleading, as professionals in the real estate field are expected to disclose information they know, regardless of their level of expertise on the specific issue. Lastly, the notion that such issues are common in the building does not exempt Fernandez from the responsibility to disclose the defect, as each case should be evaluated on its own merits. Thus,