Humber/Ontario Real Estate Course 3 Exam Practice

What must occur for a true condition precedent?

1. Can be waived

2. Fulfillment by a third party

3. Commonly used in obtaining a severance

4. Binding regardless if the condition is met

The correct answer is: Fulfillment by a third party

For a true condition precedent to occur, it must be fulfilled by a third party. In the context of real estate transactions, a condition precedent is a condition that must be satisfied before a contract becomes binding. In this case, the correct answer is B because the fulfillment by a third party is a crucial element in ensuring that the condition precedent is met. This distinguishes it from the other options. Options A, C, and D are not characteristics of a true condition precedent: A. Can be waived: This implies that the condition may or may not be fulfilled, which contradicts the concept of a condition precedent that must be met before the contract becomes binding. C. Commonly used in obtaining a severance: While conditions precedent may be used in various real estate transactions, their purpose is not specifically tied to obtaining a severance. D. Binding regardless if the condition is met: This would suggest that the condition precedent holds no significance, which is not the case as the condition must be fulfilled by a third party for it to be considered a true condition precedent.