A registrant listing a property learns that the basement leaks, a latent defect the seller is legally obliged to disclose to buyers. The seller wants to conceal it. What should the registrant do under Ontario law?
Correct Answer
A) Disclose the defect to every interested buyer
O. Reg. 567/05 s. 22.2 requires a seller's broker or salesperson who knows a fact that the seller is legally obliged to disclose to disclose it to every buyer who expresses an interest in the property, and to make best efforts to get each buyer's written acknowledgement. The seller's wish to conceal the leak does not override the rule. The duty covers facts the seller must legally disclose; it is not a duty to reveal every material fact.
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A real estate salesperson learns that a property they listed has foundation issues that the seller hasn't disclosed. What should they do according to professional ethics?
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