Humber/Ontario Real Estate Course 3 Exam Practice

Upon finalizing an agreement of sale, what must be ensured regarding document handling?

1. Deliver buyer and seller copies immediately upon acceptance

2. Buyer receives documents first due to primary signatory status

3. Hold off on the seller's copy until payment is confirmed

4. Provide a copy to the local bank before the parties

5. Furnish the seller's copy within 24 hours post-acceptance

6. Send both copies to the legal department before distribution

The correct answer is: Deliver buyer and seller copies immediately upon acceptance

The requirement to deliver copies of the agreement of sale to both the buyer and seller immediately upon acceptance is correct because it ensures transparency and acknowledgment of the transaction for both parties involved. This practice establishes a clear record of what has been agreed upon and provides both parties with the necessary documentation to proceed with the transaction confidently. Timely delivery of documents fosters trust between the buyer and seller and prevents potential disputes over the terms or conditions stated in the agreement. Moreover, immediate distribution helps align both parties on the subsequent steps needed to finalize the sale, such as inspections, financing, or closing procedures. It is also pertinent to note that various legal frameworks and regulations may require such immediate action to uphold the contractual rights of both parties. Keeping both the buyer and seller informed and updated on the progress of the agreement is crucial in real estate transactions.