Humber/Ontario Real Estate Course 4 Exam Practice

If a buyer dies before the closing of a property sale, who would be bound by the terms of the agreement?

1. An heir inheriting the buyer's estate

2. The executor of the buyer's estate

3. The agreement becomes null and void

4. The terms are only binding on the seller

5. A trustee appointed by the court

6. The real estate agent involved in the transaction

The correct answer is: The executor of the buyer's estate

In the event that a buyer dies before the closing of a property sale, the agreement remains binding, and the executor of the buyer's estate is responsible for upholding the terms of the contract. The executor is appointed to manage the deceased's estate, ensuring that the deceased's wishes as outlined in the will are followed, along with responsibilities dictated by law. The executor acts on behalf of the deceased in fulfilling obligations, including the transfer of property in accordance with the executed purchase agreement. This means that the executor has the authority to close the sale and transfer the property to the seller, even though the original buyer has passed away. This maintains the integrity of the contractual agreement and provides clarity in the case of real estate transactions, preventing confusion about ownership and ensuring both parties (the seller and the estate of the buyer) can move forward with the transaction. Other options do not reflect the legal standing in such circumstances: heirs, while they may benefit from the estate, are not directly responsible for executing the contract, and the agreement does not become null and void solely due to the buyer's death. The binding nature of the agreement does not rest solely on the seller or any third party like a real estate agent or court-appointed trustee, who would only get involved