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Agency & Professional EthicsStigma DisclosureHARD

An Ontario listing agent represents a seller whose home was the site of a suicide two years ago. A buyer's agent asks directly whether any deaths have occurred on the property. The seller has told the listing agent not to disclose it, and the seller has no legal obligation to disclose it. What should the listing agent do?

Correct Answer

A) Decline to answer rather than lie, and advise the seller of the risks

Neither TRESA nor its regulations require stigma disclosure, and where the seller has no legal obligation to disclose, Code of Ethics s. 12 bars the listing agent from revealing the client's confidential information without written consent. Code s. 5 forbids misrepresentation, so the agent may not deny the death either. The agent should decline to answer and advise the seller about the risks of silence, disclosing only if the seller consents in writing.

Answer Options
A
Decline to answer rather than lie, and advise the seller of the risks
B
Follow the seller's instruction and state that no deaths have occurred
C
Disclose the suicide anyway, since an Ontario statute requires stigma disclosure
D
Answer fully, since a direct question overrides the duty of confidentiality

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Key Terms

stigmatized propertyCode of Ethics s. 5Code of Ethics s. 12confidentialitymisrepresentation
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