Humber/Ontario Real Estate Course 3 Exam Practice

Which is accurate concerning condition precedent clauses?

1. A condition precedent assumes the agreement is binding

2. Escape clauses benefit the buyer

3. When drafting such clauses, multiple conditions should link to one fulfillment date and include a waiver provision

4. Seller take-back mortgages must always be open

5. Condition precedent clauses should not include waiver dates

6. Condition subsequent clauses are used with waiver provisions

The correct answer is: When drafting such clauses, multiple conditions should link to one fulfillment date and include a waiver provision

Regarding the accurate statement concerning condition precedent clauses, Option C is correct. When drafting condition precedent clauses, it is important to ensure that multiple conditions are linked to one fulfillment date and include a waiver provision. This is essential to provide clarity and flexibility in the contract. By linking multiple conditions to one date, it streamlines the process and reduces confusion. Additionally, including a waiver provision allows parties to waive certain conditions if needed, providing the opportunity for a smoother transaction process. Options A, B, D, E, and F are incorrect because they do not accurately describe the characteristics or considerations related to condition precedent clauses as mentioned in real estate transactions.