Humber/Ontario Real Estate Course 3 Exam Practice

A salesperson has responsibilities to a buyer client, especially involving conditions in an offer. Which of the following is accurate?

1. Ensure the condition is removed within the specified time by preparing an appropriate notice or waiver.

2. If regarding a property inspection, ensure only that the inspector arrives on time.

3. Encourage the buyer to waive a mortgage condition if the lender indicates mortgage approval will not be an issue.

4. For a condition precedent, use a notice of fulfillment or a waiver to address the condition.

5. Negotiate a better condition with the seller's agent to satisfy the buyer's requirements.

6. Remove any condition without the buyer's consent if it's in their best interest.

The correct answer is: For a condition precedent, use a notice of fulfillment or a waiver to address the condition.

The accurate option highlights the importance of handling conditions precedent correctly in real estate transactions. A condition precedent refers to a stipulation that must be fulfilled for a contract to become binding. In this context, the salesperson is responsible for ensuring that the buyer's requirements are met and properly communicated to the seller. Using a notice of fulfillment or a waiver specifically addresses the need to confirm that the conditions have been satisfied or to formally waive them if they are no longer relevant or are not fulfilled in time. This allows both the buyer and the seller to proceed with clarity regarding the transaction's status. Properly managing these documents is a critical aspect of a salesperson's role, as it protects the interests of the buyer client and ensures compliance with the offer's terms. In contrast, the other options approach conditions in ways that do not align with the salesperson's fiduciary duty or the legal requirements involved in real estate transactions. For instance, preparing a notice or waiver without the buyer’s agreement, or encouraging the buyer to waive important conditions like a mortgage approval may expose the buyer to risks that could have been avoided with proper legal guidance. Thus, understanding the correct method for managing conditional agreements is vital for effective real estate practice.