Humber/Ontario Real Estate Course 3 Exam Practice

Which date sequence is incorrect when drafting an agreement of purchase and sale that requires a two-week financing condition?

1. Irrevocable date of May 4th.

2. Removal of condition date of May 18th.

3. Offer date of May 3rd.

4. Requisition date of May 10th.

5. Inspection date of May 1st.

6. Acceptance date of May 7th.

The correct answer is: Requisition date of May 10th.

The correct answer is D. The requisition date of May 10th is incorrect when drafting an agreement of purchase and sale that requires a two-week financing condition. In a standard agreement of purchase and sale with a two-week financing condition, the key dates typically follow a specific sequence. The offer date (C) is the starting point, followed by the irrevocable date (A), inspection date (E), acceptance date (F), requisition date (D), and finally the removal of condition date (B). The requisition date (D) is the date by which the buyer must fulfill any requirements related to title search, zoning, and other property-related investigations. It typically falls after the acceptance date (F) and before the removal of condition date (B). This timeline allows the buyer sufficient time to address any concerns raised during their due diligence before confirming the purchase by waiving the financing condition on the removal of condition date. Therefore, in this context, the requisition date of May 10th is incorrectly placed in the sequence for an agreement with a two-week financing condition, making it the correct answer.