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.
Why This Is the Correct Answer
This answer is correct because both triggers in s. 22.2 are met: the seller is legally obliged to disclose the leak, and the registrant knows about it. The registrant must therefore tell every buyer who expresses an interest and should make best efforts to get a written acknowledgement from each, whatever the seller prefers.
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