Humber/Ontario Real Estate Course 3 Exam Practice

What is a key responsibility of a salesperson when a buyer opts out of a home inspection in the agreement of purchase and sale?

1. Ensure the buyer signs a waiver

2. Document the decision in an acknowledgment clause

3. Hire a third-party inspector

4. Recommend alternative inspection methods

5. Include a repair clause to protect the buyer

6. Offer a discount on brokerage fees

The correct answer is: Document the decision in an acknowledgment clause

When a buyer chooses to opt out of a home inspection in the agreement of purchase and sale, documenting the decision in an acknowledgment clause is key. This practice serves as a formal record that both the buyer and the salesperson understand and agree to the buyer's choice to forgo the inspection. By including this acknowledgment clause, it helps protect all parties involved by clearly outlining the buyer’s decision, which can mitigate potential disputes in the future regarding the condition of the property. It emphasizes the significance of informed decision-making in real estate transactions, ensuring that the buyer recognizes the potential risks associated with waiving the inspection. Other options do not fulfill the essential documentation requirement in this context. While ensuring the buyer signs a waiver is important, it does not provide the same level of clarity regarding the understanding of opting out of the inspection. Hiring a third-party inspector, recommending alternative methods, including a repair clause, or offering discounts on brokerage fees do not address the necessity for an explicit agreement concerning the choice made by the buyer in relation to the inspection.