Sarah is selling her 40-acre agricultural property in Leduc County. She informs her real estate associate, Mark, that a portion of her land has an active oil well and associated surface lease agreement with an energy company. What is Mark's primary obligation regarding this information during the sale process?

Question: Sarah is selling her 40-acre agricultural property in Leduc County. She informs her real estate associate, Mark, that a portion of her land has an active oil well and associated surface lease agreement with an energy company. What is Mark's primary obligation regarding this information during the sale process?

Answer options:

• To advise Sarah that the surface lease will automatically terminate upon sale of the property.
• To ensure the listing agreement explicitly states that mineral rights are included in the sale. ✅ To disclose the existence of the surface lease agreement and its financial implications to potential buyers.
• To renegotiate the terms of the surface lease for a higher compensation rate before listing the property.

Correct answer: To disclose the existence of the surface lease agreement and its financial implications to potential buyers.

Explanation: A real estate associate has a fiduciary duty to disclose all material facts known to them about the property. An active surface lease and its associated compensation are material facts that can significantly impact a buyer's decision, as per RECA's Rules.