Humber/Ontario Real Estate Course 3 Exam Practice

Salesperson Hayes included a clause regarding the pool equipment's condition in the agreement. What should be added to this clause?

1. A:Statement that the warranty survives and doesn't merge on closing.

2. B:Ensures buyer protection against future problems.

3. C:Adequately protects the buyer client.

4. D:Not necessary since the pre-printed agreement covers it.

5. E:Certification from a third-party inspector.

6. F:A timeline for addressing any discovered issues.

The correct answer is: A:Statement that the warranty survives and doesn't merge on closing.

The inclusion of a statement that the warranty survives and doesn't merge on closing is crucial because it clearly establishes that the buyer retains the rights to the benefits of the warranty even after the transaction has closed. In many real estate transactions, certain rights and protections associated with warranties may end at closing, leaving buyers vulnerable to future issues with the pool equipment. By explicitly stating that the warranty survives, it ensures that the buyer can hold the seller accountable for any defects or problems that arise after the sale. This additional clarity helps to protect the buyer and reinforces the seller's obligation regarding the equipment's condition. While other options may seem beneficial for buyer protection, emphasizing that the warranty continues post-closing is a fundamental aspect of maintaining the buyer's rights in the agreement. This clause strengthens the buyer's position and clearly outlines the expectations related to the equipment's condition after the transaction has occurred.