Humber/Ontario Real Estate Course 1 Exam Practice

How should a salesperson handle the issue of material facts?

1. Disclose to clients only if insisted

2. Disclose facts that ought to be known to buyer customers

3. Reasonably determine and disclose to both customers and clients

4. No obligation to disclose to clients or customers

The correct answer is: Disclose facts that ought to be known to buyer customers

When dealing with the issue of material facts, it is crucial for a salesperson to disclose facts that ought to be known to buyer customers. This ensures that all relevant information is provided to potential buyers, allowing them to make informed decisions about a property. Failing to disclose material facts could lead to legal liabilities and ethical issues. It is the responsibility of the salesperson to act in the best interest of their clients and customers by being transparent and upfront about any information that could potentially impact a real estate transaction. Option A, which suggests disclosing only if insisted, is not a recommended practice as salespersons should proactively disclose material facts rather than waiting for clients to request information. Option C, which mentions reasonably determining and disclosing to both customers and clients, lacks the specificity needed to ensure that all material facts are disclosed appropriately. Option D, stating that there is no obligation to disclose to clients or customers, goes against the ethical and legal obligations of a real estate professional.