Humber/Ontario Real Estate Course 4 Exam Practice

Which of the following must be fully detailed by a real estate salesperson when purchasing a property?

1. Closing costs for a buyer

2. Home inspection results

3. Specific architectural designs

4. Seller's property disclosures

The correct answer is: Closing costs for a buyer

When a real estate salesperson is involved in a property transaction, they are required to ensure that their clients are fully informed about all aspects of the deal. Among the options listed, closing costs for a buyer must be thoroughly detailed. This includes an itemized breakdown of all expenses associated with completing the purchase of the property. These costs can significantly affect a buyer's overall budget and financial planning, which makes it essential for the salesperson to provide this information clearly. Detailing closing costs helps buyers understand the total amount of cash they need upfront, includes fees for items such as loan origination, title insurance, inspections, and other associated expenses. This transparency is vital in enabling buyers to make informed decisions and avoid potential surprises on closing day. While home inspection results and seller's property disclosures are also critical pieces of information, their importance and necessity vary based on the circumstances of each transaction. Similarly, specific architectural designs might be relevant but are not universally required to be presented by the salesperson as part of the purchase process. Providing comprehensive details on closing costs, however, is a fundamental part of the real estate sales process and essential for buyer protection.