Humber/Ontario Real Estate Course 4 Exam Practice

If a buyer discovers a significant pool crack post-purchase and files a complaint, what is Salesperson Young's error?

1. Registrar will not investigate due to legal action

2. Young made no representations about pool's condition

3. Young failed to avoid error and misrepresentation

4. Registrar will not pursue due to Young's inexperience

The correct answer is: Young failed to avoid error and misrepresentation

The correct answer highlights that Salesperson Young failed to avoid error and misrepresentation, which encompasses the fundamental responsibilities of a real estate professional regarding transparency and the condition of a property. In real estate transactions, agents are expected to conduct due diligence and communicate any known defects to potential buyers. If they neglect to do so, or if inaccuracies in the information provided lead the buyer to make a decision, this can be classified as an error or misrepresentation. It is crucial for realtors to ensure that they have accurate knowledge about property conditions, such as the state of a pool, especially if known issues could influence a buyer's decision. The existence of a significant pool crack suggests either a failure to inform or a lack of proper investigation on Young's part, which could potentially lead to legal repercussions post-purchase. Thus, the acknowledgment of error and misrepresentation in real estate practice is essential for maintaining integrity and trust in the landlord-tenant relationship.