Humber/Ontario Real Estate Course 1 Exam Practice

Under REBBA, which of the following must be disclosed by a real estate professional?

1. Private homeowner sales ads

2. Identity of a previous owner upon request

3. Presence of lead paint upon inquiry

4. Existence of renovations made by the previous owner

5. Known material facts affecting property value

6. Potential future development zones

The correct answer is: Known material facts affecting property value

Under REBBA (Real Estate and Business Brokers Act), real estate professionals are required to disclose known material facts affecting the value of a property. This is crucial to ensure transparency and protect the best interests of buyers, as withholding such information could potentially lead to legal issues. It is essential for real estate professionals to provide accurate and complete information about factors that could significantly impact a property's value or desirability. In relation to the other options: - "Private homeowner sales ads" are not typically required to be disclosed by real estate professionals unless they contain material information affecting the property's value. - While the "identity of a previous owner upon request" may not be required to be disclosed unless it is a material fact, it is not a mandatory disclosure under REBBA. - The "presence of lead paint upon inquiry" should be disclosed by real estate professionals as it is a known health hazard, but it is not the specific requirement under REBBA. - The "existence of renovations made by the previous owner" may or may not need to be disclosed depending on whether they affect the property's value significantly. - "Potential future development zones" are not typically considered mandatory disclosures under REBBA unless they have a direct impact on the property