A listing agent learns of a material latent defect in the property that the seller is legally required to disclose to buyers. What must the agent do?
Correct Answer
C) Disclose it to every interested buyer
O. Reg. 567/05 s. 22.2 says that if a seller has a legal obligation to disclose a fact to the buyer and the seller's broker or salesperson knows it, the broker or salesperson shall disclose it to every buyer who expresses an interest in the property. The agent must also make best efforts to get each buyer's written acknowledgement. Client confidentiality does not cover a fact the seller is legally bound to disclose.
Why This Is the Correct Answer
This answer is what s. 22.2 requires: a fact the seller is legally obliged to disclose, once known to the seller's representative, must be disclosed to every buyer who expresses an interest. It is disclosed to each interested buyer, not only to those who ask.
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