Under Ontario's TRESA regulations, administered by RECO, what must a registrant representing a buyer disclose to the client when financing is part of the purchase decision?
Correct Answer
A) All material facts that could affect their decision
O. Reg. 567/05 s. 22.1 requires a registrant who represents a client in an acquisition to take reasonable steps to determine the material facts relating to it, disclose them to the client as soon as possible, and advise the client to consider whether they affect the decision. The duty is to disclose all material facts, not to filter them. It does not make the registrant a mortgage adviser: if the client needs advice the registrant cannot competently give, Code of Ethics s. 11 requires a referral to someone who can.
Why This Is the Correct Answer
This answer is correct because O. Reg. 567/05 s. 22.1 requires a registrant representing a client to determine the material facts relating to the acquisition, disclose them to the client as soon as possible, and advise the client to consider whether they affect the decision. The rule is about all material facts, not a filtered selection. The registrant does not become a mortgage adviser; financing advice beyond their competence must be referred out under Code of Ethics s. 11.
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