Humber/Ontario Real Estate Course 4 Exam Practice

What is a landlord's obligation if a city notice indicates defective wiring in an investment property for sale?

1. Ignore it as it’s not material

2. Assume no disclosure is needed as it’s obvious

3. Disclose only to buyer clients, not customers

4. Disclose to all prospective buyers due to material latent defect

5. Wait until an offer is made to disclose

6. Address it only if the buyer’s inspector finds it

The correct answer is: Disclose to all prospective buyers due to material latent defect

The obligation of a landlord in the context of a city notice indicating defective wiring is to disclose this information to all prospective buyers due to it being classified as a material latent defect. A material latent defect is a significant issue with the property that is not readily observable and can affect the desirability or value of the real estate. Since a city notice highlights a defect in the property's wiring, it is imperative that this information is shared with potential buyers upfront, as it may impact their decision-making process. Disclosing such defects fosters transparency and protects the landlord from potential legal repercussions arising from non-disclosure. Not only does it comply with ethical standards in real estate transactions, but it also aligns with the legal obligations that real estate professionals must uphold, ensuring that all stakeholders are adequately informed about issues that could affect the property's safety or value. Disclosing to all prospective buyers, rather than selectively, ensures that everyone has equal access to critical information that could impact their investment decision.