Humber/Ontario Real Estate Course 3 Exam Practice

Salesperson Blake has the following offer dates: Agreement Date: September 12, Completion Date: November 15, Requisition Date: October 5, Home Inspection Condition: By October 10. What is correct regarding these dates?

1. The buyer may incur legal costs without confirming a binding agreement.

2. The requisition date should be pushed to an earlier date.

3. There is enough time for title and non-title searches before the closing date.

4. The home inspection should take place within two days of the requisition date.

5. The offer should be rescinded if these dates cannot be adjusted.

The correct answer is: The buyer may incur legal costs without confirming a binding agreement.

The correct choice highlights that the buyer may incur legal costs without confirming a binding agreement. This situation arises because while an agreement date has been established, there are still conditions that need to be fulfilled before the agreement becomes fully binding. In real estate transactions, certain conditions (like home inspection and financing) need to be satisfied before legal commitments are confirmed. If the buyer begins to engage legal services or conduct title searches prior to the agreement being binding, they may incur costs for services that will not provide them any security if the deal does not finalize. This situation emphasizes the importance of having a clear and fully executed agreement before proceeding with expenditures that may not be recoverable. The context of other choices reinforces this understanding. For example, while pushing the requisition date earlier may seem beneficial, it does not address the potential legal costs incurred before a binding agreement. The statement about having enough time for title and non-title searches is technically accurate, but if a binding agreement isn't confirmed yet, those searches should be approached cautiously. Likewise, mentioning that home inspections should be conducted close to the requisition date fails to consider the conditions that still hang in the balance. Lastly, the suggestion to rescind the offer does not account for the possibility of resolving the situation through communication