Humber/Ontario Real Estate Course 3 Exam Practice

If an agreement involves a minor utility easement, it:

1. Must be removed before the sale completion date.

2. Typically is accepted by the buyer as part of the title.

3. Will result in an objection due to title concerns.

4. Causes a void contract from the outset.

5. Is considered a significant property defect.

6. Requires court approval.

The correct answer is: Typically is accepted by the buyer as part of the title.

When an agreement involves a minor utility easement, it is typically accepted by the buyer as part of the title. This is because minor utility easements are common legal rights granted for the installation and maintenance of utility infrastructure, such as power lines, water pipes, or telecommunications. These easements are generally seen as a minor impact on the property's value and use. Buyers in real estate transactions often understand that utility easements are a standard part of property ownership, reflecting the balance between individual property rights and community utility needs. Since these easements do not usually impede the primary use of the property or significantly affect its value, buyers are generally expected to accept them. The other options address circumstances that are either not typically associated with minor easements or involve serious legal implications that do not apply in most cases. For instance, the idea that a minor easement must be removed before sale completion is impractical since it could disrupt essential service delivery. Also, the notion that such an easement creates grounds for a title objection or voids a contract suggests a severity that is not characteristic of minor easements. Similarly, requiring court approval and labeling the easement as a significant property defect would be more applicable to substantial easements or issues rather than minor ones