A registrant, acting for a buyer, becomes aware that the seller's property, a historic building, is subject to a provincial heritage designation that restricts certain alterations without prior municipal approval. The designation is not explicitly stated in the MLS listing or property disclosure statement provided by the seller's brokerage. What is the most appropriate action for the registrant to take in accordance with the Code of Ethics?

Question: A registrant, acting for a buyer, becomes aware that the seller's property, a historic building, is subject to a provincial heritage designation that restricts certain alterations without prior municipal approval. The designation is not explicitly stated in the MLS listing or property disclosure statement provided by the seller's brokerage. What is the most appropriate action for the registrant to take in accordance with the Code of Ethics?

Answer options:

• Advise the buyer to proceed with caution but refrain from disclosing the information, as it was not officially provided by the seller's side. ✅ Immediately inform the buyer of the heritage designation and its potential implications, advising them to seek independent legal counsel.
• Contact the seller's brokerage to demand an updated property disclosure statement before informing the buyer.
• Undertake a full municipal search to confirm the designation before discussing it with the buyer.

Correct answer: Immediately inform the buyer of the heritage designation and its potential implications, advising them to seek independent legal counsel.

Explanation: Registrants have a duty to discover and disclose material facts concerning a property that are known to them, or ought to be known, to their client. Section 21 of O. Reg. 580/05 (Code of Ethics) requires registrants to disclose any material facts about a property that are known to the registrant to the person to whom the services are provided.