Humber/Ontario Real Estate Course 4 Exam Practice

A clause related to the Planning Act in an agreement is included for what purpose?

1. Authorize title search

2. Ensure survey provision

3. Protect buyer in case of required severance

4. Protect seller for non-lawful use

5. Ensure zoning compliance

6. Authorize land usage

The correct answer is: Protect buyer in case of required severance

The inclusion of a clause related to the Planning Act in an agreement serves to protect the buyer in case a severance is required. A severance generally involves the division of a parcel of land into smaller parts, and it may be necessary to obtain a separate title for each part. Under the Planning Act, any severance must comply with local planning policies and zoning regulations. This protection is crucial for buyers who may be interested in developing or utilizing the property in specific ways. If a severance is required to fulfill the buyer’s needs—such as building additional structures, separating properties, or other developmental intents—the clause ensures that the buyer is safeguarded should any conformity issues arise during the approval process. In contrast, the other options, while related to real estate transactions and planning, do not specifically address the purpose of the Planning Act clause in terms of protecting a buyer regarding severance issues. They focus more on other aspects of land usage, compliance, or seller obligations. In essence, the clause primarily aims to mitigate risks associated with required severances, making it essential for informed real estate investment and planning decisions.