Humber/Ontario Real Estate Course 2 Exam Practice

How does a property condition disclosure statement protect the buyer?

1. By listing property appraisals

2. By listing repairs completed by previous owners

3. By disclosing relevant information about the property's condition

4. By indicating the market value

5. By providing an insurance evaluation

The correct answer is: By disclosing relevant information about the property's condition

A property condition disclosure statement protects the buyer by providing relevant information about the property's condition. This disclosure allows the buyer to make an informed decision regarding the purchase, as they are made aware of any existing issues or defects with the property that could potentially impact its value or require future repairs. By having this information upfront, buyers can negotiate terms with full knowledge of what they are getting into and potentially avoid any surprises after the sale has been completed. Options A, B, D, and E are not correct because they do not directly relate to the purpose of a property condition disclosure statement. Property appraisals, repairs completed by previous owners, market value, and insurance evaluation are important aspects of a real estate transaction but are not the primary focus of a property condition disclosure statement, which is to provide information about the property's condition.