Humber/Ontario Real Estate Course 4 Exam Practice

Which statement is accurate regarding the requirements of the REBBA Code of Ethics?

1. A registrant must disclose known material defects to customers.

2. A seller must complete a seller property information statement.

3. Competing offer details must be disclosed to all involved parties.

4. Current forms must be used for all real estate transactions.

5. Disclosure of competing offers is mandatory.

6. Buyers must be informed of seller's past property issues.

The correct answer is: Current forms must be used for all real estate transactions.

Using current forms for all real estate transactions is indeed a critical requirement. Accurate, up-to-date forms ensure compliance with legal standards and make sure that all parties involved fully understand the terms and conditions of the transaction. The use of current forms helps facilitate proper documentation, reduces misunderstandings, and protects the interests of all parties, including buyers, sellers, and registrants. While other options mention important aspects of real estate transactions, such as disclosures and seller obligations, they do not universally apply as strict requirements in all situations. For instance, the requirement for disclosing known material defects to customers is crucial, but it is not enough to solely hinge on this obligation without the foundational requirement of using proper and current forms that encapsulate such disclosures and terms. This context underlines why the accuracy of using current forms is vital within the framework of REBBA compliance.