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Alberta Real Estate Licensing Exam Practice · Question

An associate is representing a buyer client. During a viewing, the associate notices a significant structural crack in the basement wall that was not disclosed on the seller's property disclosure statement. To uphold their fiduciary duty, what must the associate do?

The duty of reasonable care and skill, combined with the duty of full disclosure to their client, requires the associate to advise the buyer about the material

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Question: An associate is representing a buyer client. During a viewing, the associate notices a significant structural crack in the basement wall that was not disclosed on the seller's property disclosure statement. To uphold their fiduciary duty, what must the associate do?

Answer options: ✅ Advise the client about the crack and recommend further investigation, such as a professional inspection.

  • Disclose the crack to the seller's agent immediately.
  • Ignore the crack as it's the client's responsibility to conduct due diligence.
  • Suggest the client make a low offer due to the defect, without explicit advice for inspection.

Correct answer: Advise the client about the crack and recommend further investigation, such as a professional inspection.

Explanation: The duty of reasonable care and skill, combined with the duty of full disclosure to their client, requires the associate to advise the buyer about the material defect and recommend appropriate action, like an inspection, as per RECA principles.

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