Humber/Ontario Real Estate Course 3 Exam Practice

A salesperson omits a representation's non-owner spouse from the seller representation agreement. This is a problem when:

1. The property being conveyed is part of a company asset.

2. The omission is for a co-owned investment property.

3. The property is a commercial building.

4. The property is a matrimonial home.

5. It concerns leased lands.

6. The property is under renovation.

The correct answer is: The property is a matrimonial home.

Omitting a non-owner spouse from the seller representation agreement presents a significant issue when the property in question is designated as a matrimonial home. In Ontario, the Family Law Act provides specific protections regarding the ownership and disposition of matrimonial homes, which are regarded as joint assets for married couples. When a property is classified as a matrimonial home, both spouses have equal rights to the property, regardless of whose name is on the title. Therefore, when a salesperson fails to include the non-owner spouse in the representation agreement, it can lead to legal complications, potential disputes regarding the sale, and claims by the excluded spouse. The consent of both parties is typically required to ensure a legally binding sale, which emphasizes the importance of properly including all relevant parties in the representation agreement to uphold the rights established under family law. In contrast, the other scenarios mentioned do not carry the same legal implications related to ownership rights or equitable claims between spouses. For example, in co-owned investment properties or leased lands, the dynamics of ownership and consent may be different from those surrounding a matrimonial home.