Humber/Ontario Real Estate Course 3 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 3 Exam. Study with challenging questions and detailed explanations to enhance your understanding. Get ready to excel in your exam!

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If an offer to purchase a property includes a condition precedent on financing, what should that clause detail?

The mortgage's interest rate and type
Maximum allowable terms by buyer
Minimum acceptable terms by the buyer
Exclusion of waiver clause

The correct answer is: Minimum acceptable terms by the buyer

In a situation where an offer to purchase a property includes a condition precedent on financing, the clause should detail the minimum acceptable terms by the buyer. This means that the buyer specifies the minimum requirements that need to be met for the financing in order for the offer to proceed. By outlining the minimum acceptable terms, the buyer can ensure that they will be able to secure financing that meets their needs and expectations. Option A is incorrect because detailing the mortgage's interest rate and type would be more specific details of the financing arrangement and not necessarily a condition precedent. Option B is incorrect as it refers to the maximum allowable terms by the buyer, which wouldn't make sense in the context of a condition precedent on financing as the buyer would want to set minimum requirements, not maximum limits. Option D is incorrect because including an exclusion or waiver clause is not typically necessary when outlining the minimum acceptable terms for financing in an offer to purchase a property.