Humber/Ontario Real Estate Course 4 Exam Practice

In which situation is the salesperson required to disclose a structural defect?

1. When the defect is not causing any current issues for the seller

2. When the defect is considered a material latent defect

3. When the defect is visible to the naked eye

4. When the seller asks the salesperson to keep it confidential

5. When the costs to repair the defect are substantial

6. When the buyer fully inspects the property

The correct answer is: When the defect is considered a material latent defect

The salesperson is required to disclose a structural defect when it is considered a material latent defect because such defects significantly impact the property's value, safety, or usability. Material latent defects are those that are not immediately visible and could affect a buyer's decision to purchase the property. This requirement stems from the obligation to act honestly and transparently in real estate transactions, ensuring that potential buyers are fully informed about any significant concerns that could influence their purchasing choices. By identifying a structural defect as a material latent defect, the salesperson fulfills their duty to disclose critical information, thus protecting both the buyer's interests and the seller's reputation. This legal and ethical requirement helps maintain the integrity of the real estate market and fosters trust between parties involved in the transaction.