Humber/Ontario Real Estate Course 3 Exam Practice

Which acknowledgment is included in the agreement of purchase and sale?

1. The agreement assumes seller compliance with the Planning Act

2. Minor utility easements are a valid objection to title

3. The seller warranties the property for future use

4. Buildings remain at buyer's risk from acceptance to completion

5. Assumes buyers’ loan approvals are guaranteed

6. The seller agrees to future renovations

The correct answer is: The agreement assumes seller compliance with the Planning Act

The acknowledgment included in the agreement of purchase and sale indicates that the agreement assumes seller compliance with the Planning Act. This is essential because the Planning Act sets regulations regarding land use, zoning, and development within Ontario. By including this acknowledgment, it ensures that the seller has adhered to all relevant laws and regulations governing the property. It provides a level of assurance to the buyer that the property is legally compliant and that the seller is responsible for any issues that may arise from non-compliance. Acknowledging this compliance ensures that buyers can proceed with the transaction knowing they are not stepping into a legal quagmire that could result from the seller’s prior actions or omissions. It serves to protect both parties, but primarily the buyer, by affording some legal recourse should unexpected legal issues arise related to the property's compliance with the Planning Act.