Humber/Ontario Real Estate Course 3 Exam Practice

To ensure a swimming pool included with a property closing in February is in good working condition, what is the best clause to include in the offer?

1. Include a two-part deposit scheme.

2. Include a warranty clause that extends beyond the closing date with a termination date in the spring.

3. Seek direct verbal assurance from the seller.

4. Include an acknowledgment from the seller on the current condition of the pool.

5. Have a clause for a detailed pool inspection before closing.

6. Suggest holding back a portion of the sale proceeds until the pool is inspected in spring.

The correct answer is: Include a warranty clause that extends beyond the closing date with a termination date in the spring.

Including a warranty clause that extends beyond the closing date with a termination date in the spring is particularly effective because it provides long-term assurance regarding the condition of the swimming pool after the property has been transferred to the buyer. This approach allows the buyer to have confidence that any issues with the pool that may arise in the spring months—when it becomes more relevant due to increased usage—will be addressed by the seller. Essentially, it ensures that the seller is responsible for any repairs or maintenance that may be necessary after the closing, thus safeguarding the buyer's investment. In contrast, other options may not provide the same level of protection or assurance. For instance, a two-part deposit scheme or an acknowledgment from the seller on the current condition of the pool may not guarantee future performance or resolution of issues. A verbal assurance is not legally binding and lacks the formality and protection of a written clause. A detailed pool inspection prior to closing might seem prudent, but if the closing occurs before the inspection can be performed, the buyer still risks discovering problems after the fact without recourse. Holding back a portion of the sale proceeds might create complications in the transaction and does not directly address the underlying issue of the pool's functionality. Ultimately, the warranty clause with a termination