Humber/Ontario Real Estate Course 4 Exam Practice

Which statement best describes the disclosure requirements under REBBA when a registrant has an interest in a property?

1. The disclosure is required only when the registrant sells the property.

2. Full disclosure of all known facts affecting property value must be made.

3. No disclosure is needed if the registrant's corporation is buying the property.

4. Disclosure is unnecessary if the property is not listed with the brokerage.

5. The requirement applies only if the registrant has a direct interest in the property.

6. Disclosure is only needed when specified by the buyer.

The correct answer is: Full disclosure of all known facts affecting property value must be made.

The statement about full disclosure of all known facts affecting property value being required under the Real Estate and Business Brokers Act (REBBA) is correct because it reflects the ethical and legal obligations of registrants in real estate transactions. Registrants are required to disclose any interest they have in a property to ensure transparency and fair dealing with all parties involved. This obligation is crucial in upholding the integrity of the real estate profession and protecting consumers from potential conflicts of interest. Disclosure must encompass not just the registrant's financial interest, but also any other facts that could influence the purchasing decision, including defects, zoning issues, or neighborhood developments that could impact value. Such full disclosure helps maintain trust in the transaction and ensures that buyers are making informed decisions. The other options reference various scenarios where disclosure might be overlooked or appear unnecessary, but they fail to recognize the overarching requirement for transparency under REBBA, which is designed to foster a fair and trustworthy real estate market.