Humber/Ontario Real Estate Course 3 Exam Practice

What should a buyer’s representative do if they become aware of a significant defect in a property during a showing?

1. Report the Defect to the Seller Immediately

2. Advise Their Client and Document the Finding

3. Ignore the Defect as It Is Not Their Responsibility

4. Ask the Seller’s Agent to Fix the Issue Before Closing

5. Negotiate a Lower Price Without Informing the Buyer

6. Refrain from Mentioning the Defect to Avoid Conflict

The correct answer is: Advise Their Client and Document the Finding

When a buyer's representative becomes aware of a significant defect in a property during a showing, advising their client and documenting the finding is the correct course of action. This approach prioritizes the buyer’s interests by ensuring that they are fully informed about potential issues with the property. Documenting the defect also provides a clear record that may be important later in the transaction process, whether for negotiation purposes or potential legal considerations. This reflects the fiduciary duty of the representative to act in the best interest of their client, ensuring transparency and honesty in the transaction. By informing the buyer, the representative enables them to make an informed decision regarding the property, which is critical in real estate dealings. The choice to immediately report the defect to the seller, while well-intentioned, does not serve the best interest of the buyer, as it may compromise their negotiating position or create tensions in the transaction. Other choices, such as ignoring the defect or refraining from mentioning it, undermine the ethical responsibilities of the representative and could lead to significant issues down the line, including liability concerns. Negotiating a lower price without informing the buyer also fails to uphold the duty of disclosure, ultimately not serving the buyer’s best interests.