Humber/Ontario Real Estate Course 3 Exam Practice

How should Salesperson Gallagher address fire insurance concerns for an older home with outdated wiring?

1. Inform that coverage is never available for homes with outdated wiring

2. Assure that age and wiring will not affect insurance

3. Neglect advising and let the buyer inquire independently

4. Recommend including a condition for thorough investigation

5. Discourage purchasing due to insurance issues

6. Suggest upgrading wiring prior to buying

The correct answer is: Recommend including a condition for thorough investigation

Addressing fire insurance concerns for an older home with outdated wiring requires a careful approach. Recommending that the buyer include a condition for a thorough investigation is the most prudent answer. This recommendation aligns with the best practices for real estate transactions, where the buyer is encouraged to conduct due diligence before finalizing a purchase. Including this condition allows the buyer to assess the home's wiring system and its implications for obtaining fire insurance, potentially uncovering issues that could affect coverage or premiums. By doing so, Gallagher ensures that the buyer is well-informed about the state of the property and its risks, which fosters transparency and builds trust. Additionally, this practice helps protect both the buyer and the salesperson from any future liabilities associated with undisclosed property conditions. Thus, suggesting a thorough investigation directly addresses the potential concerns while protecting the interests of all parties involved.