Humber/Ontario Real Estate Course 4 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 4 Exam with our comprehensive practice tests. Study with flashcards and multiple-choice questions, complete with hints and detailed explanations. Achieve success on your real estate licensing journey!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

How should material facts be disclosed in the case of clients versus customers?

Material facts need to be disclosed only to clients, not customers.
Material facts must be disclosed to seller customers if known or ought to be known.
Material facts require further research and don’t need immediate disclosure to clients.
Widely known and accepted facts in the neighborhood need not be disclosed to customers.
All material facts, regardless of client or customer status, must be disclosed.
Material facts only need to be disclosed if they have legal implications.

The correct answer is: Material facts must be disclosed to seller customers if known or ought to be known.

Material facts in real estate refer to information crucial for making informed decisions about a property. In the context of clients and customers, the requirement to disclose these facts varies based on the nature of the relationship. The rationale behind the selected answer emphasizes that seller customers have a right to be informed about material facts. This stems from the duty that real estate professionals have to their clients and the duty of care they extend to customers during transactions. When working with customers, particularly in the sale of a property, the agent must disclose any known or reasonably knowable material facts that could affect the customer's purchasing decision. This disclosure helps ensure transparency and fairness in the real estate transaction, fostering trust and maintaining ethical standards in the profession. By contrast, the other options do not reflect the comprehensive obligations required under real estate regulations. While material facts may not need to be disclosed to general customers in certain contexts, when it comes to seller customers, full disclosure is necessary to uphold the integrity of the transaction and protect the interests of all parties involved. Understanding this distinction is critical for agents to navigate their responsibilities effectively and ethically.