Humber/Ontario Real Estate Course 3 Exam Practice

The Planning Act clause in an agreement of purchase and sale:

1. Provides that the buyer agrees to abide by municipal zoning regulations.

2. Focuses primarily on the title search process leading to land registration.

3. States that the seller agrees to obtain any necessary consents for compliance.

4. Confirms the buyer will pay any costs relating to obtaining compliance.

5. Outlines buyer's responsibility toward municipal planning costs.

6. Ensures that all building restrictions are outlined by the seller.

The correct answer is: States that the seller agrees to obtain any necessary consents for compliance.

The Planning Act clause in an agreement of purchase and sale is crucial because it addresses the requirements for compliance with local bylaws and regulations concerning land and property use. By stating that the seller agrees to obtain any necessary consents for compliance, this clause ensures that the seller is responsible for securing any approvals or permissions needed under the Planning Act before the property transaction is finalized. This alleviates the burden from the buyer, who can feel confident that the property will meet all applicable zoning and planning requirements at the time of sale. The inclusion of this clause protects the interests of the buyer by ensuring that the seller fulfills their obligation in navigating the complexities of municipal regulations, which can be both time-consuming and complicated. This interaction between the seller's obligations and the necessity for compliance with local planning laws underscores the importance of due diligence in real estate transactions. By incorporating this clause, the agreement reinforces accountability and provides legal assurances that can help facilitate a smoother transaction process.