Humber/Ontario Real Estate Course 4 Exam Practice

What is a fundamental requirement according to the REBBA Code of Ethics for making offers?

1. Disclosure of all competing offers to each prospective buyer.

2. Accuracy in contract forms and usage.

3. Seller must update the information statement constantly.

4. Material defects must always be hidden.

5. Only verbal offers should be accepted initially.

6. A real estate lawyer must always be present during offer presentations.

The correct answer is: Accuracy in contract forms and usage.

The REBBA Code of Ethics emphasizes the importance of accuracy in contract forms and their usage, as this is crucial for maintaining transparency and fairness in real estate transactions. Accuracy ensures that all parties have a clear understanding of the terms and conditions being agreed upon, which is essential in preventing potential disputes and misunderstandings. By mandating accuracy in contract forms, the Code reinforces professionalism and integrity within real estate practices, fostering trust between buyers, sellers, and real estate professionals. The other options do not accurately reflect the fundamental requirements set out by the REBBA Code. For instance, while disclosure of competing offers can promote fairness, it is not universally mandated in every situation. The expectation for sellers to update information statements is context-dependent and not a blanket requirement. Hiding material defects contradicts the ethical standards of transparency and honesty. Verbal offers may not hold the same legal weight as written ones, and the necessity of a real estate lawyer's presence during offer presentations varies by context and is not a strict requirement in every situation.