Humber/Ontario Real Estate Course 4 Exam Practice

How should a salesperson disclose a seller disclosure statement according to the REBBA Code of Ethics?

1. As soon as an offer is submitted by a potential buyer

2. When verbally requested by any party interested

3. Only when authorized by the salespersons brokerage

4. When requested within a five-day window

5. When not otherwise instructed by the seller

6. To inform potential buyers by regulation unless otherwise directed by the seller

The correct answer is: To inform potential buyers by regulation unless otherwise directed by the seller

The correct choice highlights the obligation of real estate salespeople to disclose the seller disclosure statement to potential buyers in accordance with regulatory requirements. This approach is grounded in ensuring transparency within real estate transactions, which fosters trust and informed decision-making among buyers. The regulation reinforces the idea that potential buyers have a right to receive critical information about a property, which is often encapsulated in a seller disclosure statement. This document typically covers vital aspects including property conditions, repairs, or any encumbrances that may affect the property's value or desirability. By stating that disclosure should occur unless the seller has directed otherwise, it acknowledges the balancing act between a seller's rights to confidentiality and the buyer's need for information. This provision ensures that salespeople remain compliant with regulations while still respecting the seller's wishes, thereby promoting ethical practice within the industry. In contrast, the other answers do not provide a comprehensive framework for disclosure consistent with the requirements of the real estate regulatory body. For instance, waiting for an offer to be submitted, responding only upon verbal requests, or disclosing only with brokerage authorization might lead to scenarios where buyers are left uninformed, potentially harming their interests in the transaction.