Humber/Ontario Real Estate Course 3 Exam Practice

Why was a waiver provision incorrectly added to a condition subsequent involving a new mortgage?

1. The buyer can waive the condition regardless of the mortgage specifics

2. A waiver provision is not used with condition subsequent

3. Mortgage conditions must only be written in condition precedent

4. The condition precedent must contain the waiver clause

5. A waiver provision hampers the negotiation process

6. The clause should not have any waiver aspect

The correct answer is: A waiver provision is not used with condition subsequent

In real estate transactions, a condition subsequent is a condition that, once fulfilled, can terminate a contract. A waiver provision allows a party to waive their rights to a condition or requirement of the contract. The reason why a waiver provision was incorrectly added to a condition subsequent involving a new mortgage is that, traditionally, waiver provisions are not used with conditions subsequent. Conditions subsequent are meant to be strict requirements that, if not met, can lead to the termination of the contract automatically without the need for waiver or permission. Therefore, adding a waiver provision to a condition subsequent, as indicated in option B, goes against the usual practice and purpose of conditions subsequent in real estate transactions.