Humber/Ontario Real Estate Course 1 Exam Practice

What should a salesperson do when a buyer inquires about past flooding issues in a low-lying area?

1. Inform the buyer that he is not aware of any current flooding.

2. Advise the buyer to investigate further as problems occurred in the past.

3. Refrain from mentioning the previous flooding to protect the seller.

4. Advise the buyer that past issues have been resolved.

5. Direct the buyer to public records for more information.

6. Discuss the issue only if the buyer insists on knowing more details.

The correct answer is: Advise the buyer to investigate further as problems occurred in the past.

Advising the buyer to investigate further as problems occurred in the past is the most responsible approach. When addressing concerns about previous flooding in a low-lying area, it is crucial to ensure that the buyer is aware that past flooding issues may have implications for the property's current and future condition. By encouraging the buyer to investigate further, the salesperson is promoting due diligence and ensuring that the buyer can make an informed decision. This guidance is beneficial because it emphasizes the importance of understanding the historical context of the property. While the salesperson may not have firsthand knowledge of the current flooding situation, highlighting the need for further investigation assists the buyer in gathering the necessary information to assess risks effectively. Moreover, being transparent about past issues aligns with ethical practices in real estate, helping maintain trust between all parties involved. Other choices, such as suggesting the salesperson's lack of awareness or implying that previous flooding issues have been resolved, can mislead the buyer or withhold critical information. Directing the buyer to public records could be a helpful follow-up, but the essence of advising them to investigate further encompasses a broader sense of responsibility and vigilance that is critical in real estate transactions.