Humber/Ontario Real Estate Course 4 Exam Practice

A stigma related to a property:

1. Should not be revealed to potential buyers.

2. Can impact the property for a long time after the event.

3. Typically enhances the property's value.

4. Can easily be evaluated for its impact on the property's value.

5. Is irrelevant to the sale.

6. Should be kept confidential.

The correct answer is: Can impact the property for a long time after the event.

A stigma related to a property refers to a negative association or perception that can arise from various events or circumstances, such as a crime occurring on the property or it being previous site of a tragic incident. The correct choice emphasizes that such a stigma can have long-lasting effects on the property's perceived value and marketability. Once a stigma becomes known, it can influence buyers’ perceptions and decisions, often leading to a prolonged negative impact even after the original event has occurred. For instance, a property that once had a reputation for being the site of a crime may continue to struggle with buyer interest, as the stigma may persist in public perception and local memory, impacting demand. The other options do not align with the implications of a stigma in real estate. Confidentiality is not wise when it comes to a stigma that could be publicly known or discovered; it's important for sellers to disclose significant factors that might affect the buyer's decision. Stigmas usually do not enhance a property's value and are significant in assessments. The impact of a stigma cannot be easily measured since it involves subjective perceptions that can vary greatly among potential buyers, making its evaluation complex. Lastly, a stigma is very relevant to the sale, as it plays a crucial role in the buyer's decision-making