Humber/Ontario Real Estate Course 3 Exam Practice

What should a condition precedent clause include when arranging a new first mortgage?

1. Include mortgage amortization details

2. Prohibit a waiver due to the clause's nature

3. Include minimum acceptable terms for the buyer

4. Ensure a minimum of 15 days for condition fulfillment

The correct answer is: Include minimum acceptable terms for the buyer

When arranging a new first mortgage, a condition precedent clause should include minimum acceptable terms for the buyer. This is crucial because it helps protect the buyer's interests by specifying the minimum terms that must be met for the mortgage agreement to be considered valid. By including these terms in the condition precedent clause, the buyer can ensure that the mortgage meets their needs and expectations before proceeding with the transaction. The other options are incorrect because: A. Including mortgage amortization details is more related to the specifics of the mortgage agreement itself rather than a condition precedent clause. B. Prohibiting a waiver due to the clause's nature is not a standard inclusion in a condition precedent clause for a new first mortgage. D. Ensuring a minimum of 15 days for condition fulfillment is not a typical requirement for a condition precedent clause in a new first mortgage arrangement.