Humber/Ontario Real Estate Course 4 Exam Practice

A potential buyer discovers an unexpected severance on property title. What's the best course of action?

1. Proceed with the purchase if the price is right

2. Discuss the issue with the seller immediately

3. File a title objection during the requisition period

4. Make a conditional offer pending resolution

5. Drop the offer and look for other properties

6. Request a price reduction from the seller

The correct answer is: File a title objection during the requisition period

When a potential buyer discovers an unexpected severance on a property title, the best course of action is to file a title objection during the requisition period. This allows the buyer to raise concerns about the title of the property and request more information or resolution from the seller before completing the purchase. By filing a title objection, the buyer can protect themselves from any potential issues or complications related to the severance. Discussing the issue with the seller immediately, making a conditional offer pending resolution, or requesting a price reduction from the seller are all actions that could be considered after filing a title objection during the requisition period. Proceeding with the purchase if the price is right or dropping the offer and looking for other properties without addressing the title concern may expose the buyer to unnecessary risks and legal issues in the future.