Humber/Ontario Real Estate Course 3 Exam Practice

What does the 'Agreement in Writing' clause in an agreement of purchase and sale state?

1. Any changes inserted into the agreement supersede the preprinted wordings.

2. A consumer report may be accessed to confirm the seller's ability to pay remuneration.

3. The clause is irrelevant if a seller take back mortgage is involved.

4. The buyer must adhere to any changes requested by the seller.

5. Time limits within the agreement are advisory, not mandatory.

6. The buyer's consent to the agreement can be verbal.

The correct answer is: Any changes inserted into the agreement supersede the preprinted wordings.

The 'Agreement in Writing' clause in an agreement of purchase and sale emphasizes the importance of having all terms and conditions documented in writing to ensure clarity and enforceability. When changes or amendments are inserted into the agreement, it indicates that these modifications override any previously stated terms in the preprinted wording. This is crucial because it establishes a clear record of what all parties have agreed upon, thereby reducing the potential for misunderstandings or disputes later on. This clause is foundational in real estate transactions, as it upholds the principle that an oral agreement or unrecorded changes do not constitute a legally binding agreement. Thus, the written document becomes vital where amendments have been made, signifying that those new terms are recognized and enforceable. This aligns closely with contract law, which typically requires that agreements be in writing to prevent disputes about what was agreed upon.