Humber/Ontario Real Estate Course 1 Exam Practice

In what scenario is a seller salesperson required to disclose their client’s consideration of new zoning provisions?

1. If the salesperson is unaware of the changes

2. If the changes have been finalized legally

3. If the client requests the salesperson to disclose

4. If non-disclosure might mislead the client

5. If other buyers are aware

6. If the property value might decrease without disclosure

The correct answer is: If non-disclosure might mislead the client

The requirement for a seller's salesperson to disclose their client’s consideration of new zoning provisions is predicated on the potential for non-disclosure to mislead the client. In real estate transactions, transparency is critical to ensure that all parties are making informed decisions. If the salesperson is aware of zoning provisions that could affect the property’s value, usability, or desirability, failing to disclose this information could lead to misunderstandings or financial loss for the client. By focusing on the potential for misleading the client, the salesperson upholds their duty of care and ensures ethical standards are maintained. This principle is central to real estate practice, as it safeguards the interests of clients and helps foster trustworthy relationships within the industry.