Humber/Ontario Real Estate Course 3 Exam Practice

Which of the following is NOT correct when there is a valid objection to a seller's title under the Planning Act?

1. The seller must return the buyer's deposit as the sale is concluded.

2. The seller might be unable to resolve the issue, ending the sale.

3. The seller might be unwilling to resolve the issue due to expense, and the sale concludes.

4. The buyer and seller can mutually agree to end the agreement.

5. The buyer must find an alternative property.

6. The buyer may sue for damages.

The correct answer is: The seller must return the buyer's deposit as the sale is concluded.

The option stating that the seller must return the buyer's deposit as the sale is concluded is not correct in the context of a valid objection to a seller's title under the Planning Act. When there is a valid objection, it indicates that the buyer has identified an issue with the seller's title that needs to be addressed. In such situations, the sale is not automatically concluded; instead, it may lead to further negotiations or actions regarding the title issue. The seller has options depending on the nature of the objection. They may work to resolve the concern, which might take time and effort. If they are unable or unwilling to resolve the issue, then the sale may indeed come to an end, allowing for alternative actions, such as mutual agreement to terminate or the buyer considering other properties. However, until the objection is officially resolved or the sale explicitly terminated, the obligation regarding the deposit is not straightforward; it does not mean the seller must return it without further considerations regarding the resolution of the title issue. In essence, the status of the sale and the handling of the deposit depend heavily on the steps taken to address the title objection, making the premise that the sale is concluded and the deposit must be returned incorrect.