Humber/Ontario Real Estate Course 3 Exam Practice

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Humber/Ontario Real Estate Course 3 Exam. Study with challenging questions and detailed explanations to enhance your understanding. Get ready to excel in your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is included in the purchase price as stated in the agreement of purchase and sale?

Includes the deposit.
Cannot be based on the total acreage (or hectares) in the case of a farm.
Must be based on total working acreage (or hectares) in the case of a farm.
Excludes the deposit.
Should include a detailed list of property improvements.
Is calculated separately from the property appraisal.

The correct answer is: Includes the deposit.

The purchase price in an agreement of purchase and sale typically includes the deposit made by the buyer. This deposit demonstrates the buyer's commitment to the transaction and is often held in trust until the completion of the sale. Including the deposit in the purchase price is a common practice, as it reflects the total financial consideration that the buyer will ultimately provide for the property. The agreement will generally outline the total purchase price, which encompasses the initial deposit along with the remaining balance due at closing. This comprehensive approach ensures that both the buyer and seller have a clear understanding of the total price involved in the transaction. In contrast, the other options refer to specific conditions or exclusions that do not accurately capture the standard components of the purchase price in real estate agreements. Understanding this concept is critical for future transactions and for interpreting the terms of agreements correctly.