Humber/Ontario Real Estate Course 3 Exam Practice

Which of the following statements is true regarding a data sheet in a real estate transaction?

1. The age of the property does not need to be disclosed

2. A data sheet is mandatory for every listing

3. The legal description should be verified through authoritative documents

4. The data sheet should only include hot water tank rentals

5. The list price must always be higher than the assessed value

6. A data sheet includes the sale history of previous owners

The correct answer is: The legal description should be verified through authoritative documents

The statement about verifying the legal description through authoritative documents is true in the context of a real estate transaction. The legal description is a critical element in property dealings as it precisely identifies the property being sold. It is essential to ensure that it is accurate and valid by checking against official records, such as land registry documents or surveys. This verification helps prevent disputes over property boundaries and ownership, thereby protecting both the buyer's and seller's interests. The other statements present information that could lead to misunderstandings in a real estate context. For instance, while it's true that the age of a property can be important for buyers, it doesn't necessarily need to be disclosed if it's not relevant to the transaction. The mandatory nature of a data sheet may vary by local real estate practices or regulations; thus, it's not uniformly applicable. A data sheet contains more than just rentals; it typically includes various property details and conditions. It's not a requirement that the list price exceed the assessed value, as pricing can depend on market conditions. Lastly, while including sale history can be beneficial, it's not a requirement for a data sheet, which focuses more on the property's current status and features than on its past ownership.