Humber/Ontario Real Estate Course 3 Exam Practice

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If a seller does not disclose that a fireplace does not meet code and a fire occurs post-sale, what is the implication?

  1. Buyer has no recourse as such issues are under buyer beware.

  2. Seller is exempt from disclosing material latent defects if buyer hires an inspector.

  3. Issues with residential fireplaces are not considered material latent defects.

  4. Sellers who conceal material latent defects may face legal action.

  5. Seller is accountable if a defect is discovered without inspection.

  6. Seller can be penalized only if disclosed defects were not remedied.

The correct answer is: Sellers who conceal material latent defects may face legal action.

The correct answer reflects the serious responsibility that sellers have regarding the disclosure of material latent defects in a property. When a seller is aware that a fireplace does not meet code, this represents a material latent defect—an issue that is not immediately apparent and could significantly impact the safety and value of the property. Failing to disclose this information could result in severe consequences, particularly if a fire occurs as a result of the defect. Sellers have a legal obligation to disclose known defects that could affect a buyer's decision or the safety and functionality of the property. Concealing such information exposes the seller to potential legal action from the buyer, who might seek damages related to the undisclosed defect. This accountability reinforces the importance of transparency in real estate transactions and protects buyers from unforeseen hazards related to the property's condition. This principle is grounded in the broader context of consumer protection laws, which are designed to ensure that sellers provide honest and complete information about their property. Allowing all buyers to make informed decisions is key to maintaining trust and fairness in the real estate market. Therefore, the implication of the seller's failure to disclose the fireplace issue could lead to legal repercussions for the seller, potentially making them liable for damages arising from the defect.

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