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Ontario Real Estate Licensing Exam Practice · Question

During the offer presentation for a commercial property, the buyer's agent notices that the seller's representative has not clearly disclosed an ongoing environmental compliance issue present in the vendor's property information form. What should the buyer's agent advise their client to do?

Real estate professionals have a duty to act in the best interests of their clients, which includes advising them on disclosure matters. If an environmental iss

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Question: During the offer presentation for a commercial property, the buyer's agent notices that the seller's representative has not clearly disclosed an ongoing environmental compliance issue present in the vendor's property information form. What should the buyer's agent advise their client to do?

Answer options:

  • Ignore the issue, assuming it will be revealed during the inspection.
  • Proceed with the offer as-is, hoping for a favourable outcome. ✅ Insist that the seller provide full and transparent disclosure of the issue and consider making the offer conditional on a satisfactory review of all related documentation.
  • Withdraw the offer immediately without further investigation.

Correct answer: Insist that the seller provide full and transparent disclosure of the issue and consider making the offer conditional on a satisfactory review of all related documentation.

Explanation: Real estate professionals have a duty to act in the best interests of their clients, which includes advising them on disclosure matters. If an environmental issue is suspected or not fully disclosed, the buyer's agent should advise their client to demand full transparency and make the offer conditional on a satisfactory review of all related environmental documentation. This aligns with due diligence principles and REBBA 2002's emphasis on material fact disclosure.

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