A salesperson, Robert, is representing a buyer, Emily, who is looking for a bungalow in Mississauga. Robert discovers a significant structural defect in a property Emily is considering. What is Robert's ethical obligation under the Code of Ethics prescribed by TRESA?

Question: A salesperson, Robert, is representing a buyer, Emily, who is looking for a bungalow in Mississauga. Robert discovers a significant structural defect in a property Emily is considering. What is Robert's ethical obligation under the Code of Ethics prescribed by TRESA?

Answer options: ✅ To disclose the structural defect to Emily, even if the seller's agent has not disclosed it, as it is a material fact known to the registrant.

• To keep the defect confidential to avoid prejudicing Emily's negotiating position.
• To advise Emily to conduct her own due diligence but not to directly mention the defect.
• To only disclose the defect if asked directly by Emily about the property's structural integrity.

Correct answer: To disclose the structural defect to Emily, even if the seller's agent has not disclosed it, as it is a material fact known to the registrant.

Explanation: Under the Code of Ethics in TRESA, a registrant must disclose all material facts known to the registrant that are relevant to the transaction, even if the client's interests might be indirectly affected.