Humber/Ontario Real Estate Course 3 Exam Practice

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What happens when a buyer signs an agreement of purchase and sale under seal?

  1. Buyer can revoke the offer once it is presented to the seller

  2. Buyer cannot revoke the offer once presented to the seller

  3. Can only revoke if there are competitive offers

  4. Irrevocable clause starts once the offer is submitted

  5. Offer must be accepted by seller immediately

  6. Signature is not necessary for binding terms

The correct answer is: Buyer cannot revoke the offer once presented to the seller

The correct answer is that the buyer cannot revoke the offer once it is presented to the seller. When an agreement of purchase and sale is signed under seal, it indicates a formal acceptance of the terms laid out in the document. An agreement under seal generally has more legal consequences compared to one that is not under seal. Once the agreement is presented, the buyer is bound by its terms and is unable to withdraw the offer without risking legal repercussions. The essence of an agreement under seal is that it is intended to be binding, and as such, the obligation to proceed is established at the moment of presentation to the seller. This construct is designed to create certainty in real estate transactions, which is critical in ensuring that parties can rely on the agreements made. As such, once the buyer submits the signed agreement, they effectively waive their right to revoke unless mutual consent is reached or a significant condition is breached.

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