Humber/Ontario Real Estate Course 3 Exam Practice

When advising a buyer on condition precedents, what practice should a salesperson follow?

1. Automatically waive all conditions that might delay the sale.

2. Encourage buyers to ignore minor inspection issues to expedite closure.

3. Draft a thorough notice of fulfillment or waiver to address condition precedents.

4. Consistently side with the seller's requests regarding condition fulfillments.

5. Rely exclusively on verbal agreements for condition removals.

6. Recommend unnecessary conditions to ensure buyer protection.

The correct answer is: Draft a thorough notice of fulfillment or waiver to address condition precedents.

The correct choice emphasizes the importance of transparency and clarity in the transaction process. A thorough notice of fulfillment or waiver is essential for properly addressing condition precedents. This documentation serves as a formal acknowledgment that specific conditions have either been fulfilled or waived, ensuring that both parties have a clear understanding of the status of the sale. By documenting these conditions meticulously, a salesperson protects both the buyer and seller from misunderstandings that could arise later in the transaction. Properly drafting these notices also helps to maintain a professional standard in real estate dealings, which is essential for fostering trust between parties. Other options, such as waiving conditions automatically or encouraging buyers to disregard minor inspection issues, undermine the significance of due diligence in real estate transactions. By neglecting critical conditions or encouraging shortcuts, a salesperson could expose their clients to unnecessary risks. Additionally, consistently siding with the seller or relying solely on verbal agreements can lead to confusion and disputes that could have been avoided with a clear, written record of condition precedents.