Humber/Ontario Real Estate Course 3 Exam Practice

Which statement is accurate regarding the UFFI clause in a purchase agreement?

1. If a property contains UFFI, the owner must remove it prior to selling.

2. If a property doesn't contain UFFI, a clause must be added to Schedule A.

3. The UFFI representation/warranty does not survive closing.

4. The UFFI representation/warranty applies to freehold townhouses but not other townhouse types.

5. The UFFI clause can be ignored for properties built after 1990.

6. The UFFI clause mandates an inspection for UFFI before purchase.

The correct answer is: The UFFI representation/warranty applies to freehold townhouses but not other townhouse types.

The statement regarding the UFFI representation and warranty applying specifically to freehold townhouses, while not extending the same requirements to other types of townhouses, captures the nuances of regulations concerning UFFI effectively. UFFI, or Urea Formaldehyde Foam Insulation, has distinct legal obligations based on the type of property involved. In the context of real estate transactions, particularly in Ontario, certain types of properties such as freehold townhouses are subject to stricter scrutiny regarding UFFI presence due to their unique construction characteristics. This specificity is important, as different types of townhouses—such as those in a condominium corporation—may not fall under the same reporting or warranty obligations for UFFI. Thus, the application of the representation and warranty can differ based on the ownership and structural design of the property. Understanding these distinctions helps protect both buyers and sellers, ensuring that the appropriate disclosures and warranties are provided in the purchase agreement relevant to the specific type of property in question. This ensures compliance with local regulations and safeguards against potential liabilities associated with UFFI.