Humber/Ontario Real Estate Course 3 Exam Practice

If mutual agreement is reached in real estate but paperwork is illegible, what must be ensured?

1. Mutual agreement can be informal if both parties understand the terms.

2. The agreement must be retrievable and clear as per the Code of Ethics.

3. The salesperson should call lawyers for both parties to clarify terms.

4. Only major terms need to be legible and clear.

The correct answer is: The agreement must be retrievable and clear as per the Code of Ethics.

The necessity for an agreement to be retrievable and clear aligns with the principles outlined in the Code of Ethics, which governs professional conduct in real estate transactions. Clear documentation is crucial as it ensures all parties involved have a mutual understanding of the terms and conditions laid out in the agreement. Illegible paperwork can lead to misunderstandings and disputes that may compromise the integrity of the transaction. Thus, ensuring the agreement is both clear and easily retrievable helps uphold the standards of professionalism and protects the interests of all parties involved. This underscores the importance of clarity and comprehensibility in real estate agreements, supporting effective communication and minimizing potential conflicts.