Humber/Ontario Real Estate Course 3 Exam Practice

What does the Planning Act clause require the seller to do in a purchase and sale agreement?

1. Agree to obtain any necessary consents for compliance.

2. Abide by municipal zoning regulations established under the act.

3. Primarily focus on the title search process.

4. Ensure that the buyer has paid all associated compliance costs.

5. Provide a detailed map of the property boundaries.

6. Pay any municipal planning fees throughout the sale process.

The correct answer is: Agree to obtain any necessary consents for compliance.

The correct choice identifies that the Planning Act clause in a purchase and sale agreement requires the seller to agree to obtain any necessary consents for compliance. This is significant because the Planning Act governs land use and development in Ontario, stipulating that any real estate transaction may require specific approvals or consents from municipal authorities before a sale can proceed. By including this requirement in the agreement, the seller acknowledges their responsibility to secure any necessary consent that may be mandated by local planning regulations or bylaws before the transaction can finalize. This helps ensure that the buyer will ultimately receive a property that complies with all relevant legal requirements. Other options may touch upon relevant aspects of the transaction or compliance, but they do not capture the specific responsibility imposed by the Planning Act clause, which centers on the proactive obligation of the seller to obtain consents necessary for lawful sale and use of the property.