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Ontario Real Estate Licensing Exam Practice · Question

In Ontario, what type of disclosure is generally required if a residential property has been used as a grow operation, even if it has been remediated?

A former grow operation, even if remediated, can have long-term structural or environmental impacts (e.g., mould, compromised structure) and carries a stigma, m

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Question: In Ontario, what type of disclosure is generally required if a residential property has been used as a grow operation, even if it has been remediated?

Answer options: ✅ This is considered a material latent defect and must be disclosed to potential buyers.

  • Disclosure is only required if the previous owner was convicted of a criminal offense.
  • Remediation negates the need for disclosure, as the property is deemed safe.
  • This information is private and does not need to be shared with potential buyers.

Correct answer: This is considered a material latent defect and must be disclosed to potential buyers.

Explanation: A former grow operation, even if remediated, can have long-term structural or environmental impacts (e.g., mould, compromised structure) and carries a stigma, making it a material latent defect. Salespersons and sellers have a duty to disclose such facts under REBBA 2002 and common law principles.

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