Humber/Ontario Real Estate Course 3 Exam Practice

A satisfactory completion date in a purchase and sale agreement must:

1. Ensure that the property is vacant at finalization

2. Be any day except a public holiday

3. Provide for completion no later than a specified time on that day

4. Be exactly 60 days from the date of agreement acceptance

5. Be at least 30 days before the current owner's financial quarter ends

6. Allow for termination in case of property damage

The correct answer is: Provide for completion no later than a specified time on that day

The correct response highlights that a satisfactory completion date in a purchase and sale agreement should specify the exact deadline for the completion of the transaction, stating no later than a particular time on that day. This ensures clarity and sets clear expectations for both parties involved in the agreement. Having a precise time avoids ambiguity and potential disputes regarding when the transaction is officially finalized. Other options do not provide a complete or necessary condition for the satisfactory completion date. For example, ensuring the property is vacant at finalization might be important for some transactions, but it doesn’t address the clarity needed around the timing of completion itself. Similarly, the necessity for the date to fall on a non-holiday is a consideration but not a requirement that makes the completion date satisfactory. Specifying a period such as 60 days or requiring it to be 30 days before a financial quarter ends lacks flexibility and does not accommodate the individual circumstances of different transactions. Lastly, allowing for termination in case of property damage is a condition that could be included in an agreement but does not directly pertain to the definition of a satisfactory completion date. Thus, clarity regarding the timing of completion stands out as the most essential requirement.