Humber/Ontario Real Estate Course 4 Exam Practice

A listing mandates that all offers must include a clause about property rights limited by a municipal bylaw. Which clause is suitable?

1. Acknowledgement

2. Conditional Clause

3. Direction/Consent Clause

4. Indemnity Clause

5. Representation/Warranty Clause

6. Rider Clause

The correct answer is: Acknowledgement

The correct answer is an Acknowledgement clause. This clause serves to confirm that the buyer is aware of certain specifics related to the property, which in this case involves understanding that property rights may be limited by a municipal bylaw. It effectively communicates to the buyer that they must acknowledge these limitations as part of the transaction. An Acknowledgement clause is particularly suitable in situations where it is important to ensure that all parties involved in the transaction are aware of specific issues or stipulations related to the property. In this context, the requirement to include a reference to municipal bylaws ensures that buyers are informed about any restrictions or requirements that could impact their use of the property. On the other hand, the other types of clauses mentioned serve different purposes. For instance, a Conditional Clause typically involves specific conditions that must be met for the contract to be binding, while a Direction/Consent Clause indicates explicit permissions or directions related to the transaction. An Indemnity Clause generally pertains to protection against loss or liability, and a Representation/Warranty Clause focuses on assurances made about the property’s condition or title. A Rider Clause includes additional terms or conditions that are attached to the main offer but doesn't primarily serve to ensure understanding of specific limitations like an Acknowledgement does.