Humber/Ontario Real Estate Course 3 Exam Practice

Which statement accurately describes the requirements for an amendment to an accepted agreement of purchase and sale?

1. The new wording must be added without the original wording to be deleted.

2. An amendment form can be used for changing the completion date but not correcting a misspelled name.

3. All original parties must sign the amendment.

4. No cross-reference to the original agreement of purchase and sale is needed.

The correct answer is: All original parties must sign the amendment.

The accurate description of the requirements for an amendment to an accepted agreement of purchase and sale is that all original parties must sign the amendment. This is crucial because an amendment changes the terms of the original agreement, and for those changes to be enforceable, all parties involved must consent to the modifications. This ensures that everyone is on the same page regarding the updated terms and prevents any disputes that may arise from unilateral changes. While the other options present varying scenarios, they do not reflect the necessary legal process that protects all parties involved. For instance, although it may be tempting to think that wording can be adjusted without maintaining the original, doing so could lead to misunderstandings. Furthermore, while an amendment form is indeed useful for various changes, it is not limited solely to changing completion dates; it can also be used for correcting errors, such as misspelled names, as long as all parties agree. Additionally, cross-referencing the original agreement is an essential part of any amendment for clarity and legal validity, which helps track modifications and ensure that they are understood within the context of the initial contract.