Humber/Ontario Real Estate Course 3 Exam Practice

Which term in the seller representation agreement includes an option to purchase that has been exercised?

1. The phrase 'anyone introduced or shown the property'

2. The phrase 'listing period'

3. The term 'purchase'

4. The term 'vendor'

5. The phrase 'option term'

6. The term 'agreement period'

The correct answer is: The term 'purchase'

In the context of a seller representation agreement, the term 'purchase' is pivotal as it signifies the legal transaction that occurs when a buyer agrees to acquire the property presented by the seller. When an option to purchase has been exercised, it transforms from a mere opportunity into a binding commitment. This term encapsulates the exchange of ownership and signifies that a decision has been made regarding the asset involved. Understanding that 'purchase' directly relates to the act of transferring property rights highlights its importance in formal agreements. Other phrases or terms in the agreement focus on different aspects, such as duration or who is involved in the transaction, but 'purchase' is the term that directly refers to the execution of the agreement once an option has been exercised. Thus, it is essential in understanding the role of agreements and obligations initiated during the selling process.