Humber/Ontario Real Estate Course 4 Exam Practice

What is NOT a requirement when addressing a prospective stigma in a property transaction?

1. Salespersons must disclose all stigmas.

2. Stigmas can reduce the time a property is on the market.

3. Stigmas can involve intangible issues.

4. Disclosures of stigmas are legally mandated.

The correct answer is: Stigmas can reduce the time a property is on the market.

The correct answer highlights that while stigmas can indeed affect the time a property stays on the market, this is not a requirement or a mandatory action related to addressing a prospective stigma in a transaction. In real estate, a stigma often refers to a negative perception associated with a property, which might arise from various factors such as a prior incident, location, or even market conditions. Although it's important for salespersons to be aware of how these perceptions can impact marketability, addressing or disclosing the time it may take for a property to sell due to stigma is not a formal requirement. On the other hand, the other choices reflect established practices in real estate transactions. It is a standard requirement for salespersons to disclose known stigmas, as this falls under the duty of transparency and ethical conduct. Additionally, stigmas can indeed manifest as tangible issues but may also encompass intangible factors that are less visible and more subjective. Finally, the legal requirement for disclosure of stigmas depends on the jurisdiction, but in many regions, such disclosures are mandated by law to protect the interests of buyers.