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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If a salesperson is a minority shareholder in a company making an offer to buy property:

The salesperson need not disclose the interest unless asked by the seller.
No disclosure is needed as the salesperson doesn’t control the company.
Disclosure is only needed if the company is selling property.
The salesperson must disclose their personal interest to the seller.
It is necessary to disclose only if the interest exceeds 25%.
If the company is not directly managed by the salesperson, disclosure isn’t required.

The correct answer is: The salesperson need not disclose the interest unless asked by the seller.

If a salesperson is a minority shareholder in a company making an offer to buy property, they still hold a financial interest in the transaction regardless of the percentage of shares they own. Therefore, it is crucial for the salesperson to disclose their interest in the company to the seller. By disclosing this information, the salesperson is maintaining transparency and fulfilling their legal and ethical obligations to the seller, ensuring that there are no conflicts of interest or misunderstandings in the transaction process.