Humber/Ontario Real Estate Course 3 Exam Practice

What must a buyer do when submitting an offer for a property listed at $300,000?

1. Ensure their offer has no conditional clauses to be more competitive.

2. Provide evidence of mortgage pre-approval to the listing agent.

3. Apply for a home insurance policy prior to offer submission.

4. Include a deposit cheque to show commitment to the purchase.

5. Consult with a lawyer to draft the offer contract.

6. Submit a full price offer to ensure acceptance by the seller.

The correct answer is: Include a deposit cheque to show commitment to the purchase.

Including a deposit cheque when submitting an offer for a property is a standard practice that demonstrates the buyer's serious commitment to the purchase. This deposit is often a percentage of the purchase price and serves as an initial amount that will be applied toward the down payment or closing costs once the sale is finalized. It provides assurance to the seller that the buyer is genuinely interested and has the financial capability to proceed with the transaction. Additionally, having a deposit creates a sense of urgency and adds weight to the offer, making it more attractive in a competitive market. Sellers are more likely to consider offers with a deposit as it indicates a higher level of commitment than those without. While other options may have their own merits, they either do not directly relate to the requirement of submitting an offer or are not mandatory steps in the offer process. For example, mortgage pre-approval adds confidence to the buyer's financial readiness, but it is not a requirement for the offer itself. Similarly, consulting with a lawyer or applying for home insurance, while important in the real estate process, does not pertain to the immediate submission of the offer.