Humber/Ontario Real Estate Course 2 Exam Practice

If a seller did not obtain a building permit for an addition and there is noticeable roof sag, what is the best course of action?

1. The permit issue is irrelevant since construction is completed and minor sag doesn’t need disclosure.

2. Both the lack of a permit and minor sag are non-disclosures as they are patent defects.

3. These defects are not material, as the property is still habitable and usable.

4. These are material latent defects and should be disclosed as they impact property enjoyment and value.

5. Only the permit issue needs to be disclosed, not the roof sag.

6. Such issues are considered minor and have no impact on the sale.

The correct answer is: These are material latent defects and should be disclosed as they impact property enjoyment and value.

If a seller did not obtain a building permit for an addition and there is noticeable roof sag, the best course of action is to disclose these as material latent defects. In real estate transactions, it is crucial to disclose any defects that could impact the property's enjoyment and value. In this case, the lack of a building permit can indicate non-compliance with regulations and potential safety concerns, while roof sag can signal structural issues that could be costly to repair. By disclosing these defects, the buyer can make an informed decision about whether they are willing to take on the responsibility and cost of addressing these issues after the purchase. Disclosure of material latent defects helps maintain transparency in the transaction and protects both the buyer and the seller.