Humber/Ontario Real Estate Course 4 Exam Practice

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How should an agent respond when discovering a latent defect that does not affect the safety or livability of the property?

Must disclose the defect to any potential buyers.
Should not disclose the defect if it is not visible and does not affect safety or livability.
May disclose the defect if asked specifically about it by a buyer.
Needs only inform the seller about the defect.
Can choose to ignore the defect entirely.
Should recommend specialized inspections to the prospective buyer.

The correct answer is: Should not disclose the defect if it is not visible and does not affect safety or livability.

When a latent defect is discovered that does not impact the safety or livability of the property, the appropriate course of action for the agent is not to disclose the defect if it is not visible and does not affect safety or livability. This is because in real estate transactions, agents have an obligation to disclose known material defects that could significantly impact the property's value or desirability to potential buyers. In the case of a latent defect that is not visible and does not affect safety or livability, disclosing it could potentially create unnecessary concern or alarm without providing any real value to the buyer. It is important for agents to use their discretion and follow ethical guidelines when deciding what information to disclose to potential buyers.