Humber/Ontario Real Estate Course 3 Exam Practice

The REBBA Code of Ethics sets out various requirements. Which of the following is correct?

1. A registrant must disclose the existence and details of any competing offers.

2. A seller must complete a seller property information statement when listing his or her property.

3. A registrant must disclose material defects only if they are known.

4. A registrant must use current forms when involved with listing and selling real estate.

The correct answer is: A registrant must use current forms when involved with listing and selling real estate.

The correct response emphasizes that a registrant must use current forms when listing and selling real estate as mandated by the Real Estate and Business Brokers Act (REBBA) Code of Ethics. Utilizing current forms is crucial because the forms are designed to comply with existing regulations and best practices, ensuring that all transactions are processed legally and transparently. This requirement helps protect consumers and maintain high standards in the industry by ensuring that all parties involved have the most up-to-date information and terms. Contextually, adhering to outdated forms could lead to misunderstandings or legal issues, as real estate laws and practices can change over time. By using current forms, registrants ensure they are compliant with the latest legal standards and their clients are fully informed. The other options fail to align with the principles outlined by REBBA. For instance, while the existence and details of competing offers are crucial to transparency, there are specific circumstances surrounding such disclosures that registrants must navigate carefully. Meanwhile, while seller property information statements provide valuable information, they are not strictly mandatory for all sellers. Also, the disclosure of material defects is only required if they are known, which makes it important for registrants to adequately investigate and understand their obligations under the law.