Humber/Ontario Real Estate Course 3 Exam Practice

How should a real estate agent handle a buyer’s inquiry about past flooding in an area?

1. State that the agent is not aware of current flooding issues.

2. Advise that past flooding occurred and suggest the buyer seek more information if desired.

3. Refrain from mentioning past flooding to avoid harming the seller's interest.

4. Confirm that past flooding issues have been resolved.

The correct answer is: Advise that past flooding occurred and suggest the buyer seek more information if desired.

The appropriate way for a real estate agent to handle a buyer’s inquiry about past flooding in an area is to directly address the concern by advising that past flooding has indeed occurred. This answer demonstrates transparency and adheres to the principle of full disclosure, which is crucial in the real estate industry. By informing the buyer about the history of flooding, the agent allows the buyer to make an informed decision about the property and encourages them to seek further information if they wish to understand the implications fully. This approach aligns with the ethical standard of being honest and forthright, especially regarding issues that could significantly impact a buyer's investment and future living conditions. It also protects the agent from potential liability because failing to disclose known issues could lead to legal repercussions down the line if the buyer experiences problems related to past flooding and was not adequately informed. The other approaches either lack transparency or prioritize the interests of the seller over the buyer's right to know essential information about the property, which is not in line with best practices for real estate agents.