Under RECO regulations in Ontario, what must a salesperson disclose when providing a CMA that shows a wide range of values due to market volatility?
Correct Answer
D) The limitations and assumptions underlying the market analysis
RECO regulations require real estate professionals to provide accurate and complete information, including disclosing the limitations, assumptions, and market conditions that affect their CMA. This ensures clients understand the context and reliability of the valuation opinion.
Why This Is the Correct Answer
Under RECO regulations, real estate professionals must provide complete and accurate information to clients. When a CMA shows wide value ranges due to market volatility, salespersons are required to disclose the limitations, assumptions, and market conditions that affect the analysis. This transparency ensures clients understand the reliability and context of the valuation opinion, allowing them to make informed decisions despite market uncertainty.
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An Ontario salesperson gives a seller client a CMA to help set the list price. Which obligation under the TRESA Code of Ethics (O. Reg. 365/22) most directly applies to the CMA?
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