Humber/Ontario Real Estate Course 4 Exam Practice

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What must a salesperson do regarding material facts for a seller client under the REBBA Code of Ethics?

  1. Rely on the seller's representations without needing further verification of material facts.

  2. Be excused from disclosing material facts if the seller specifically instructed not to disclose them.

  3. Limit further research regarding material facts to those mentioned by the seller.

  4. Make a reasonable attempt to determine and disclose all material facts.

  5. Disclose material facts only when asked directly by the buyer.

  6. Leave the determination of material facts to the buyer's due diligence.

The correct answer is: Make a reasonable attempt to determine and disclose all material facts.

A salesperson is required to make a reasonable attempt to determine and disclose all material facts concerning a property when representing a seller client, as outlined in the REBBA Code of Ethics. This responsibility is crucial because material facts are any information that could influence a buyer's decision regarding a property, such as structural issues, zoning changes, or liens against the property. By making reasonable efforts to identify these facts, the salesperson upholds their duty of care to the seller and potential buyers. This effort fosters transparency in the transaction, helping to build trust and ensuring that all parties are informed. The focus on reasonable attempts acknowledges that while a salesperson should be proactive, they are not expected to have exhaustive knowledge or to conduct an in-depth inspection for every possible issue. Instead, their role involves gathering and sharing pertinent information that could affect the buyer's interests. The other options imply either a lack of responsibility to investigate further or that the salesperson can forego their duty of disclosure based on instructions or assumptions, which could lead to ethical and potentially legal issues. Such approaches undermine the principles of integrity and accountability that the REBBA Code promotes.

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