Ontario Real Estate Licensing Exam Practice · Question
If a residential property in Ontario is subject to a restrictive covenant, what is the best practice for a real estate salesperson when advising a potential buyer?
Restrictive covenants can significantly impact a property's use and value. A salesperson's role is to disclose such information and strongly advise the buyer to
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Question: If a residential property in Ontario is subject to a restrictive covenant, what is the best practice for a real estate salesperson when advising a potential buyer?
Answer options:
- Ignore the covenant as it rarely impacts residential use
- Tell the buyer to research it after the purchase is complete ✅ Advise the buyer to obtain independent legal advice regarding its implications
- Assure the buyer that restrictive covenants are unenforceable
Correct answer: Advise the buyer to obtain independent legal advice regarding its implications
Explanation: Restrictive covenants can significantly impact a property's use and value. A salesperson's role is to disclose such information and strongly advise the buyer to seek independent legal counsel to understand its effects before making a commitment.
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