Humber/Ontario Real Estate Course 3 Exam Practice

If the buyers agree to exclude the patio set from the agreement, how should this change be handled?

1. The salesperson should alter the existing accepted offer and have the buyer and seller initial the change.

2. The salesperson should cancel the existing agreement and prepare a new offer that excludes the patio set.

3. The salesperson should have the seller sign a counter offer that excludes the patio set.

4. The salesperson should prepare a form to amend the agreement of purchase and sale and have both parties sign the amendment.

5. The salesperson should write a new agreement excluding the patio set.

6. The salesperson should verbally agree with both parties and note the change in writing.

The correct answer is: The salesperson should prepare a form to amend the agreement of purchase and sale and have both parties sign the amendment.

When buyers decide to exclude specific items from an agreement, such as a patio set, the proper protocol involves formally documenting that change to ensure clarity and legal protection for all parties involved. Preparing a form to amend the agreement of purchase and sale serves to officially record the exclusion. This amendment process ensures that both the buyer and seller are in agreement about the change, and both parties must sign the amendment to validate it. This approach maintains the integrity of the original agreement while clearly delineating the alterations made to it. It provides a written record of the modification, protecting the interests of both the buyer and seller. Relying on informal verbal agreements or simply adjusting the existing documents without proper amendment could lead to misunderstandings down the line. Therefore, an official amendment is the best practice in this scenario.