Humber/Ontario Real Estate Course 3 Exam Practice

Which of the following is usually NOT considered as an acknowledgement clause?

1. The buyer acknowledges Kitec plumbing exists in the home.

2. The buyer acknowledges there are no warranties on chattels included in the sale agreement.

3. The buyer acknowledges the home is a Heritage Property.

4. The buyer acknowledges the sale is conditional on a satisfactory home inspection.

5. The buyer acknowledges the presence of asbestos in the property.

6. The buyer acknowledges the property has a new roof.

The correct answer is: The buyer acknowledges the sale is conditional on a satisfactory home inspection.

The correct answer relates to the nature of an acknowledgement clause, which is intended to provide information or specific disclosures about the condition or characteristics of the property. Acknowledgement clauses typically confirm that a buyer is aware of certain facts regarding the property that may influence their decision to purchase. The statement regarding the sale being conditional on a satisfactory home inspection does not fit this definition because it reflects a term or condition of the sale rather than an acknowledgment of fact about the property. A conditional statement is about an agreement stipulating that the buyer's commitment to purchase is dependent on an event (the home inspection) being satisfactory, rather than merely acknowledging existing features or conditions of the property. The other options consist of specific disclosures, such as the presence of Kitec plumbing, warranties on chattels, the home being a Heritage Property, the presence of asbestos, or that the property has a new roof. Each of these acknowledges particular details about the property, aligning with the function of an acknowledgement clause.