Humber/Ontario Real Estate Course 3 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 3 Exam with our comprehensive quiz. Dive into engaging practice questions that will enhance your understanding and readiness for the test. Elevate your confidence and get ready to ace your exam!

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Regarding Buyer Anderson's single-family home purchase, with kitchen appliances mentioned as included in the listing, you include a clause in Schedule A. Which statement is correct?

Appliance failure after closing falls on the seller to fix.
The buyer should inspect the appliances pre-closing as they are protected only until closing.
The representation and warranty clause applies solely to structural issues.
The buyer isn't effectively protected by the clause as it lacks a waiver.
Appliances are covered under this clause even after the transaction completion date.

The correct answer is: The buyer should inspect the appliances pre-closing as they are protected only until closing.

The statement that the buyer should inspect the appliances pre-closing is correct because the buyer's responsibility to ensure the appliances are in good working order only extends up until the closing date. Once the sale is finalized, any issues or failures related to those appliances typically become the responsibility of the buyer. It’s crucial for buyers to perform a thorough inspection of all included appliances before closing to identify any potential problems that may need to be addressed prior to the transfer of ownership. This proactive step can help avoid disputes or unexpected costs after the transaction is completed. Addressing the context of other statements, the obligation related to appliance failure after closing does not rest with the seller if all was disclosed during the sale process. The representation and warranty clause generally covers more than just structural issues, and there is a distinction that warranty clauses can encompass various aspects of a property. Additionally, the idea that the clause might lack a waiver implies a misunderstanding of its function; typically, such clauses are meant to protect buyers from unforeseen issues. Lastly, once the transaction is complete, the protection under any pre-closing clauses usually ceases, making statement E misleading.