Humber/Ontario Real Estate Course 4 Exam Practice

Under which scenario must a real estate salesperson disclose a material fact?

1. If specifically instructed by the client to disclose it.

2. If the material fact is seasonal and recurrent during specific times.

3. If the client insists on its non-disclosure but its omission could affect the transaction.

4. If the seller believes it is non-essential information for buyers.

5. If it does not affect the sale price or attractiveness of the property.

6. If the fact is relevant to zoning regulations only.

The correct answer is: If the client insists on its non-disclosure but its omission could affect the transaction.

The correct scenario for a real estate salesperson to disclose a material fact is when the client insists on its non-disclosure, but omitting it could adversely affect the transaction. This situation underscores the ethical obligation that real estate professionals have to ensure all relevant information is communicated effectively. If a material fact could influence the decision-making process of the buyer or impact the transaction as a whole, the salesperson is required to disclose it, regardless of the client's wishes to keep it confidential. In many jurisdictions, failure to disclose such facts can lead to significant legal repercussions, as the integrity of the transaction relies on all parties having access to complete and truthful information. Transparency is crucial, especially in maintaining trust and preventing potential liability down the line. Regarding the other scenarios, while client instruction, seasonal occurrences, perceived non-essentials, and facts related solely to zoning may relate to the broader context of the transaction, they do not carry the same immediate obligation for disclosure as the potential impact on a transaction that could arise from non-disclosure. The core principle here is that the potential impact of a material fact on the transaction takes priority over a client's request for confidentiality.