Humber Real Estate - Course 2, Module 4, Factors Impacting Residential Real Estate Negotiations Graded A Q&A Complete

What is the difference between a 'Patent Defect' and a 'Latent Defect'? - Answer-A 'Patent Defect' is observable by the untrained eye. A 'Latent Defect' is not readily observable to the untrained eye during the reasonable inspection of a property. What is the most severe type of latent defect? - Answer-A material latent defect because it poses a serious risk that can render the home unsafe, unhealthy or otherwise uninhabitable to live it. What are some sources of demographical information that a salesperson may access? - Answer-- Real estate boards - Subscription-based databases (e.g. Geowarehouse) and Canadan Mortgage and Housing Corporation (CMHC) What are some examples of common material facts for a seller? - Answer-- Credit report of the buyer - Zoning designation (e.g. bylaws, land use or fence height requirements) - Proximity to schools or other public activities / amenities - Dwelling measurements - Recent neighbourhood property sales - New developments - Structural conditions and results (e.g. age, maintenance issues like roof leaks, foundation damage, mechanical or electrical deficiencies, basement water seepage, mould or insect infestations) - Outdated materials that can be personally or environmentally hazardous (e.g. asbestos, know-and-tube wiring, lead or Kitec plumbing or underground storage tanks) - Building and/or dwelling measurements or lot size (e.g. discrepancies in measurements cited in listings or specific measurements of a balcony) - Previous use of a property (e.g. former illicit activity such as a grow-op, meth lab or murder)- Government limitations (e.g. HST, property taxes or any expropriation plans) - P What are some ways you can do your due diligence to protect a seller's best interests? - Answer-- Inspecting the property and asking the seller questions that would reveal defects and material facts that should be disclosed - Documenting information shared with and by the seller with back-up copies stored in a second location - Protecting the seller's personal information and motivations for selling unless you have written consent to share specific information - Verifying that the information included in the listing or any advertising/promotional materials is accurate - Excluding any detail about a home that you cannot verify from the listing or adding a qualifying statement or disclaimer - Ensuring that you fully explain the content of all documents that you ask the seller to sign, and making sure that they have received copies in a timely fashion Is seller disclosure required for a patent defect? - Answer-No, because it's readily visible upon reasonable inspection. Note: A good way to to remember this term ... think "It's PATENTLY clear that there is a hole in this wall!" What does 'Caveat Emptor' mean? - Answer-Buyer beware What type of defect are the following examples of? - A missing railing - Visible cracks in a foundation wall - Evidence of mould - Water stains on the ceiling - Shingles missing from the roof - A broken window pane - Answer-Patent Defects