Humber/Ontario Real Estate Course 4 Exam Practice

Upon finding an unresolved encroachment by a neighbor's deck during pre-listing research, Salesperson Jamal should:

1. Notify the seller immediately

2. Disregard it as it isn't a material fact

3. Discuss it only with prospective buyers

4. Consult with a legal advisor

5. Include it in the property disclosure statement

6. Report it to the local zoning authority

The correct answer is: Notify the seller immediately

The correct response is for Salesperson Jamal to notify the seller immediately upon discovering an unresolved encroachment by a neighbor's deck. This is crucial because it directly impacts the property's legal standing and value. Encroachments can lead to disputes, affect the buyer's perception of the property, and potentially result in legal action. By informing the seller, Jamal ensures that the seller is aware of the issue and can take appropriate steps, such as addressing it before listing the property or disclosing it to potential buyers. In real estate transactions, transparency is vital. The seller may need to consider how to resolve the encroachment, whether through negotiations with the neighbor or by adjusting the property's marketing strategy. Being proactive about such findings protects the interests of both the seller and potential buyers, minimizing any future complications that could arise from nondisclosure.