Humber/Ontario Real Estate Course 4 Exam Practice

What must a salesperson disclose to a buyer when considering a property near a regulated conservation area?

1. The need for conservation authority approval for construction activities.

2. No disclosure is required as buyers should check it themselves.

3. Disclosure is only needed for buyer clients, not customers.

4. Follow the seller's instructions and avoid disclosing regulated area details.

5. Disclose only if directly asked about the area by the buyer.

6. Ignore any obligation if the area restrictions seem minimal.

The correct answer is: The need for conservation authority approval for construction activities.

A salesperson is required to disclose the need for conservation authority approval for construction activities when dealing with properties near regulated conservation areas. This obligation stems from the importance of ensuring that potential buyers are fully informed about any restrictions or approvals that may affect their intended use of the property. Properties located near these areas may have specific regulations that could impact the buyer’s plans, such as limitations on construction or alterations to the land. Educating the buyer about these requirements empowers them to make informed decisions and avoid potential legal or financial issues in the future. The other options do not align with the responsibility of the salesperson. For instance, suggesting that no disclosure is necessary places an undue burden on buyers, who might not be aware of the complexities involved. Additionally, the idea that disclosure should only be made if the buyer is specifically asking is insufficient, as the salesperson has a duty to proactively inform about key property details. Similarly, adhering strictly to the seller's instructions in this context could mislead the buyer, and ignoring obligations based on perceived restrictions would also pose risks to both the buyer and the salesperson’s professional conduct.