Humber/Ontario Real Estate Course 1 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 1 Exam with our comprehensive quiz. Test your understanding with multiple choice questions and detailed explanations. Build confidence and knowledge for a successful exam experience!

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As a salesperson, what should you do if you find out that a seller did not obtain a building permit for an addition?

The permit issue is not a concern as the construction is completed.
The minor roof sag, being a visible defect, does not need to be disclosed.
The defects are not material as the property is habitable.
The permit issue and defects should be disclosed as they are material latent defects.
The seller can simply sell the property "as is".
The seller must correct the sagging roof before listing.

The correct answer is: The permit issue and defects should be disclosed as they are material latent defects.

When a seller has not obtained a building permit for an addition to the property, it is crucial for a salesperson to disclose this information to potential buyers as well as any associated defects that may have arisen from the lack of proper permitting. In real estate transactions, it is important to disclose all material latent defects, which can include issues related to building permits and any resulting structural problems. By being transparent about these issues, the salesperson ensures that potential buyers are fully informed about the property they are considering purchasing. This approach aligns with legal and ethical responsibilities within the real estate industry.