Humber/Ontario Real Estate Course 4 Exam Practice

When a registrant has an indirect interest in a transaction property, what specific disclosure is required under REBBA?

1. The requirement applies only if the registrant is the seller.

2. Registrants must disclose all known factors influencing real estate value.

3. No disclosure is necessary if the transaction happens through a corporation owned by the registrant.

4. All disclosures are only required at the closing date.

5. Disclosure is mandatory only if the property is listed with the brokerage.

6. Partial disclosure of the registrant's involvement is enough.

The correct answer is: Registrants must disclose all known factors influencing real estate value.

When a registrant has an indirect interest in a transaction property, the requirement to disclose all known factors influencing real estate value under REBBA emphasizes the importance of transparency in real estate dealings. This requirement is rooted in the principle that consumers should have full knowledge of any potential conflicts of interest or factors that could affect the property's value, allowing them to make informed decisions. By mandating full disclosure of all known factors, REBBA ensures that registrants are accountable for their interests and that clients are made aware of any circumstances that could affect their transaction. This obligation is crucial for maintaining trust and integrity in the real estate profession. On the other hand, other options suggest limited or no disclosure. For instance, stating that no disclosure is necessary if the transaction occurs through a corporation owned by the registrant undermines the principle of transparency that REBBA aims to uphold. Similarly, suggesting that disclosure is only required at the closing date or that it is applicable only if the property is listed with the brokerage diminishes the necessity for upfront clarity in transactions. The notion of partial disclosure also falls short, as full disclosure is vital for the protection of all parties involved in the transaction.