Humber/Ontario Real Estate Course 4 Exam Practice

Buyer Elliott is making an offer on a home contingent on selling his current property. If Elliott fails to sell his property but still wants to proceed:

1. He must withdraw his offer immediately

2. He forfeits any deposit made

3. He can waive the sale condition and proceed

4. He can request an extension from the seller

5. He can reduce his offer price unilaterally

6. He is forced to abandon the transaction

The correct answer is: He can waive the sale condition and proceed

The correctness of choosing to waive the sale condition and proceed with the purchase reflects the options available to a buyer in a contingent offer scenario. When Elliott included a contingency in his offer based on selling his current property, it provided him with a safeguard. If he finds that he wants to move forward with purchasing the new home despite not having sold his property, waiving that condition allows him to proceed with the transaction. This option is typically possible in real estate, enabling buyers to show their commitment to the sale. By doing so, Elliott takes the initiative to continue with the purchase, irrespective of the status of his current property. It reflects a practical approach to navigating the complexities of real estate transactions when circumstances change. Other choices reflect alternatives that wouldn't be applicable in this scenario. Withdrawing the offer or forfeiting the deposit implies a lack of intent to proceed, while unilaterally reducing the offer price may not be agreeable to the seller without negotiation. Requesting an extension could be seen as excessive if he is ready to proceed without the condition. Thus, waiving the condition stands out as the most appropriate and feasible action for Elliott to take in this situation.