Under the Real Estate Services Rules, what must a licensee who represents a seller do about a material latent defect in the listed property that the licensee knows of?
Correct Answer
A) Disclose it to all other parties before any agreement is made
Rules s. 59(2) requires a licensee providing trading services to a seller to disclose any known material latent defect to all other parties to the trade, promptly and before any agreement is entered into. If the seller instructs the licensee to withhold it, the licensee must stop providing trading services to that seller (s. 59(3)).
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Under the RECA Rules, when a licensee receives a signed offer or acceptance, the licensee must give true copies to the parties in a timely manner. What is the likely consequence if a licensee fails to do so?
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