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.
Why This Is the Correct Answer
This answer is correct because a registrant who breaches O. Reg. 567/05 s. 22.1 is personally exposed to discipline under TRESA s. 21 and to a civil claim by the client. Both regulatory and civil consequences are possible, which is what this answer describes.
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