Humber/Ontario Real Estate Course 2 Exam Practice

What is a basic requirement for re-sales according to the REBBA Code?

1. Registrants must use current, approved forms

2. Registrants must reveal all offer details to competitors

3. Sellers must complete a detailed property statement

4. Material defects must be disclosed only if known

5. Only new homes require current forms

6. Disclosures are optional

The correct answer is: Registrants must use current, approved forms

A basic requirement for re-sales according to the REBBA Code is that registrants must use current, approved forms. This ensures that all the necessary information is properly documented and disclosed during the transaction process. Using outdated or unapproved forms can lead to legal issues and potential misunderstandings between the parties involved in the real estate transaction. It is crucial for registrants to adhere to this requirement to maintain transparency and professionalism in their real estate dealings. Option B is incorrect because registrants are not required to reveal all offer details to competitors as it may compromise their client's interests. Option C is incorrect because while sellers may be required to disclose certain property details, completing a detailed property statement is not a basic requirement according to the REBBA Code. Option D is incorrect because material defects must be disclosed regardless of whether they are known or not. Option E is incorrect because current forms are required for all real estate transactions, not just for new homes. Option F is incorrect because disclosures are mandatory, not optional, as part of the ethical and legal obligations of real estate practitioners under the REBBA Code.