Humber/Ontario Real Estate Course 1 Exam Practice

Which of the following best describes Salesperson McKenzie's actions by omitting information about the access road encroachment?

1. Salesperson McKenzie is following the client's legal instruction to protect and promote the client's interests

2. Salesperson McKenzie is failing to disclose significant information, violating the Code of Ethics

3. The encroachment issue has existed for years without dispute, so it is not necessary to disclose

4. The buyer should investigate the property thoroughly, so disclosure is not needed

5. The encroachment is a minor issue and does not impact the listing

6. Omitting the information is acceptable as long as the seller agrees

The correct answer is: Salesperson McKenzie is failing to disclose significant information, violating the Code of Ethics

The correct choice highlights that Salesperson McKenzie is failing to disclose significant information regarding the access road encroachment, which constitutes a violation of the Code of Ethics. Real estate professionals are required to provide complete and accurate information to all parties involved in a transaction. Failing to disclose this critical detail can lead to serious consequences for the buyer, who may be unaware of potential access issues that could affect their use of the property. By not mentioning the encroachment, McKenzie is not only compromising the trust inherent in the agent-client relationship but also potentially engaging in misleading practices, which can result in disciplinary actions or legal repercussions. Ethical obligations demand transparency, especially when information could significantly influence a buyer's decision-making process. This understanding reinforces the necessity for full disclosure so that all parties can make informed choices.