Ace the Humber/Ontario Real Estate Course 4 Exam 2025 – Unlock Your Property Potential!

The reasoning behind the choice indicating that the seller might be liable for the buyer's incurred costs rests on the principle of misrepresentation and the obligations of sellers to disclose known defects in a property. In situations where a seller provides inaccurate information regarding the condition of the property—particularly issues like water leakage—they may be held liable if it is found that they knowingly concealed or misrepresented this information to the buyer.

If the buyer relies on the seller’s statement and does not conduct a home inspection, and if it later emerges that there was indeed a water leakage issue that the seller was aware of but did not disclose, the buyer may have grounds to seek compensation for associated costs. This legal principle is based on the expectation that sellers must operate in good faith and provide truthful information about the property's condition.

In this context, the other options highlight different aspects of real estate transactions and buyer due diligence, but they do not align with the specific legal recourse available to the buyer if they are misled by inaccurate information provided by the seller.