Humber/Ontario Real Estate Course 4 Exam Practice

Before listing a recently inherited property for sale, what documentation is essential?

1. The valuation by a tax consultant

2. Legal vendor's disclosure form completed

3. Proof of title via legal documentation

4. Environmental inspection report

5. Inspection report by an appraisal firm

6. Financial assessment from an accountant

The correct answer is: Proof of title via legal documentation

The necessity of proof of title via legal documentation is crucial before listing a recently inherited property for several reasons. Establishing clear title confirms the seller's legal ability to sell the property, ensuring there are no disputes about ownership. This documentation provides potential buyers with assurance that the seller has legitimate rights to the property, which is fundamental in real estate transactions. While other documents like a legal vendor's disclosure form or an environmental inspection report may be valuable and even sometimes required depending on the situation, the proof of title is the foundational document that confirms ownership and allows the transaction to proceed legally. It's important to ensure that all legalities are in place to protect both the seller and the buyer in the transaction process.