Humber/Ontario Real Estate Course 3 Exam Practice

What is Salesperson Ramay's obligation if a property previously used as a meth lab has been remediated?

1. Disclose this fact only if so instructed by the employing brokerage.

2. Not disclose this information, as the property has been remediated.

3. Not required to disclose this information, unless Buyer Client Razavi specifically asks about the issue.

4. Obligated under the REBBA Code of Ethics to disclose material facts to the Buyer Client Razavi.

The correct answer is: Obligated under the REBBA Code of Ethics to disclose material facts to the Buyer Client Razavi.

Salesperson Ramay's obligation to disclose the fact that a property was previously used as a meth lab, even after remediation, is rooted in the ethical and legal standards established by the Real Estate and Business Brokers Act (REBBA) Code of Ethics. This legislation mandates that real estate professionals must disclose all material facts that could impact a buyer's decision-making process. A property that has been used as a meth lab carries potential implications regarding its safety, health risks, and the long-term impact on property value, even if it has undergone remediation. Such information is considered material because it significantly influences a buyer’s assessment of the property and their willingness to proceed with the purchase. Therefore, Ramay is obligated to inform Buyer Client Razavi about this history, ensuring that Razavi can make a fully informed decision. The other options suggest circumstances in which disclosure may not be required, such as relying solely on instructions from the brokerage or ignoring the past usage if remediation has occurred. However, the ethical obligation to disclose material facts aligns with the principle of transparency and trust in real estate transactions, emphasizing the responsibility to protect client interests above all.