Humber/Ontario Real Estate Course 3 Exam Practice

Under REBBA, which of the following is mandatory when a registrant has a direct or indirect interest in the real estate apart from buying or selling?

1. Disclosure of only negative information affecting the real estate value.

2. Full disclosure of all facts that may affect the property value.

3. Disclosure is required only when the registrant is the buyer.

4. Disclosure is waived if the purchaser is a registrant-owned corporation.

5. Registrants must obtain vendor's acknowledgment.

6. Disclosure is not required if the brokerage holds the property.

The correct answer is: Disclosure is required only when the registrant is the buyer.

The fundamental principle under REBBA (Real Estate and Business Brokers Act) is that registrants must act with transparency when they have any interest in a real estate transaction. This includes any direct or indirect interest beyond just participating as a buyer or seller. In this context, full disclosure of all facts related to the real estate that may influence its value is essential. It ensures that all parties involved in the transaction are fully informed and that there are no conflicts of interest that could mislead any buyers or sellers. The correct answer emphasizes that registrants are required to disclose their interest regardless of whether they are the buyer, seller, or involved in any other capacity. This obligation extends to situations where another registrant may be acting as a buyer. Not disclosing this information could potentially lead to issues of dishonesty or misrepresentation, which are against the ethical standards upheld in the real estate profession. Thus, transparency is vital in maintaining trust and integrity in real estate transactions under REBBA, highlighting the importance of full disclosure in safeguarding both public interest and professional conduct.