Humber/Ontario Real Estate Course 3 Exam Practice

Which strategy is best when a buyer plans to re-zone a property before purchasing?

1. Indicate current zoning as present use in the agreement

2. Include a condition for re-zoning application time

3. List that present use cannot lawfully continue

4. Leave present use space blank

5. Verify re-zoning feasibility separately

6. Proceed without mentioning re-zoning

The correct answer is: Include a condition for re-zoning application time

Including a condition for re-zoning application time in the agreement is the best strategy when a buyer intends to re-zone a property prior to purchasing it. This approach allows the buyer to secure the property while ensuring that they have sufficient time to submit and potentially receive approval for the re-zoning application. By including a specific timeline in the agreement, the buyer can manage their expectations and plan accordingly, knowing they have a dedicated period to pursue the necessary approvals. Setting this condition also protects the buyer's interests by making the purchase contingent upon the successful re-zoning, thus reducing the risk of a poor investment should the desired re-zoning not be granted. Ensuring that the re-zoning is addressed in the purchase agreement emphasizes its importance in the buyer's plans for the property and legitimizes the need for this contingency in the transaction. The other strategies presented do not provide the same level of clarity or protection for the buyer's interests in relation to the re-zoning process. For instance, indicating current zoning as present use does not address the buyer's future intentions for the property and may lead to misunderstandings about the potential for change. Similarly, listing that present use cannot lawfully continue could complicate the buyer's ability to operate the property until re-zoning