Humber/Ontario Real Estate Course 4 Exam Practice

When a property known to have been an illegal grow house is being viewed by a prospective buyer, what is required?

1. Must be disclosed to a buyer client viewing the property.

2. Need not be disclosed to the potential buyer, unless the previous use is widely known in the community.

3. Need only be disclosed if the client specifically asks about whether or not the property has been used for such an operation.

4. Is not a relevant point of discussion with a buyer customer, if any visual evidence of the previous operation have been eliminated and new carpets laid throughout.

5. Must only be disclosed if the property's market value has been affected.

6. Can be withheld if the previous owner signed a non-disclosure agreement.

The correct answer is: Must be disclosed to a buyer client viewing the property.

The requirement of disclosing that a property was previously used as an illegal grow house is important for maintaining transparency in real estate transactions. This situation falls under the principle of material fact disclosure, which mandates that agents must inform clients of any pertinent information that could affect their decision-making. An illegal grow house may carry implications such as potential defects, increased risk of legal issues, or even the lingering effects of environmental contamination from the activities that occurred on the property. By disclosing this information, the buyer is given the opportunity to assess the risks and implications associated with the property. This is essential in fostering trust and ensuring that all parties have access to relevant information that might influence the buyer's willingness to proceed with the purchase. Other options do not align with the legal and ethical obligations of real estate professionals. For instance, failing to disclose when the previous use is not widely known could mislead buyers, who might later discover the property's history. Similarly, relying on buyer inquiries or simply stating that evidence has been removed undermines the responsibility to provide full transparency. The legality and ethical standards in real estate prioritize informed consent and fair dealings, making disclosure a crucial aspect of the buying process.