Humber/Ontario Real Estate Course 4 Exam Practice

How can Salesperson Alfa best protect a buyer client’s interests concerning a property's existing parking pad?

1. Include a clause in the offer stipulating the offer is contingent upon verifying the legality of the parking pad.

2. Review the property tax bill to check for parking pad legality.

3. Assume any missing identifying plaque indicates the parking pad is illegal.

4. Inquire with the seller directly about the parking pad's compliance with local regulations.

The correct answer is: Include a clause in the offer stipulating the offer is contingent upon verifying the legality of the parking pad.

Including a clause in the offer stipulating that the offer is contingent upon verifying the legality of the parking pad is the most robust action Salesperson Alfa can take to protect the buyer client’s interests. This approach directly addresses the potential risks associated with the legality of the parking pad—specifically, whether it complies with local zoning laws, building codes, and municipal regulations. By making the offer conditional on this verification, Alfa ensures that the client is not obligated to proceed with the purchase if it turns out the parking pad is illegal or does not meet necessary standards. This safeguard is essential for preventing any financial investment in a property that may come with significant liabilities or compliance issues related to the parking pad. Other methods, such as reviewing the property tax bill or directly questioning the seller, do not provide the same level of security. The property tax bill may not always reflect compliance with current regulations or may provide incomplete information. Inquiring directly with the seller may yield biased responses since sellers may not disclose issues or may not fully understand the legal standing of the parking pad. Assuming a lack of identification means illegality is a presumptive and potentially misleading approach, as many legal parking pads might not have such plaques. Thus, the chosen answer reflects a proactive and legally sound strategy