Under Ontario's Trust in Real Estate Services Act, 2002 (TRESA), what can happen if a salesperson fails to disclose to their client a material fact that they knew or should have determined?
Correct Answer
C) The agent may face disciplinary action and potential liability
O. Reg. 567/05 s. 22.1 requires a broker or salesperson who represents a client to take reasonable steps to determine the material facts, disclose them to the client as soon as possible and advise the client to consider them. A breach can lead to a complaint and to discipline under TRESA s. 21, including education, fines, conditions or suspension, and the client may also sue for the loss caused.
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