Humber/Ontario Real Estate Course 3 Exam Practice

When drafting an agreement of purchase and sale, rental items in a resale home being offered for sale:

1. Must be assumed by the buyer.

2. Must be removed.

3. Should be fully described including rental arrangements.

4. Are becoming less of a factor in negotiations.

The correct answer is: Should be fully described including rental arrangements.

In an agreement of purchase and sale, it is crucial to have a clear understanding of rental items associated with a resale home. The choice that states rental items should be fully described, including rental arrangements, is correct because clarity is essential in any real estate transaction. It informs all parties involved about what is included in the sale and the terms associated with rental items. Detailing these items ensures that buyers are fully aware of any ongoing obligations or financial commitments they may inherit as part of the purchase process. This can include items like furnaces, water heaters, or other systems that might be rented rather than owned outright. By providing a complete description, potential disputes or misunderstandings can be minimized, leading to a smoother transaction experience. While other options touch on aspects of rental items, they do not emphasize the importance of clear communication and thorough documentation needed in the agreement.