Humber/Ontario Real Estate Course 3 Exam Practice

Brianna submits an offer conditional on arranging a $400,000 mortgage. If waived, what happens to her rights?

1. Brianna's rights related to the mortgage condition are forfeited

2. The seller must still secure the mortgage

3. Brianna can renegotiate the mortgage condition later

4. The agreement becomes void

5. The offer is renegotiable

6. The mortgage condition remains enforceable

The correct answer is: Brianna's rights related to the mortgage condition are forfeited

When Brianna submits an offer that is conditional on arranging a $400,000 mortgage, she essentially includes a safeguard that allows her to withdraw if she can't secure the financing. If she chooses to waive this condition, it implies that she is satisfied with her financing options or has secured the necessary mortgage. Once Brianna waives the mortgage condition, her rights related to that specific condition are forfeited because she is indicating that she is moving forward with the offer regardless of the mortgage arrangement. This means she cannot later claim that her ability to secure financing impacts her agreement with the seller. Essentially, waiving the condition demonstrates her commitment to the purchase, thus removing any associated rights or protections that the mortgage condition initially provided. This decision does not obligate the seller to secure the mortgage, does not allow for future renegotiation of the mortgage condition, and does not void the agreement. Instead, it solidifies the agreement as enforceable without any conditions tied to financing, reflecting her intent to proceed with the transaction.