Humber/Ontario Real Estate Course 4 Exam Practice

If a use declaration is left blank in the Title Search clause during the offer preparation, what is implied?

1. The buyer should verify the property's use independently

2. The seller confirms that current single-family residential use can continue

3. The salesperson should insert both present use and zoning

4. Neither party needs to verify the zoning before the transaction

5. The seller isn’t required to make any representation regarding use

6. The buyer takes responsibility for all legal matters regarding use

The correct answer is: The seller confirms that current single-family residential use can continue

The correct answer implies that when a use declaration is left blank in the Title Search clause, it signals that the seller is confirming that the current single-family residential use of the property can continue. This situation arises from the general practices in real estate transactions, where the absence of a specific declaration can be interpreted as an affirmation of the existing use. The key idea here is that buyers can often rely on the seller's knowledge of the property and its use, especially if the seller has lived there or managed it for a period. Leaving this declaration blank does not indicate uncertainty but rather suggests that the current residential use is acceptable. Other choices might imply a different shift of responsibility or assumptions about due diligence, but the context of a blank use declaration clearly designates that the seller stands by the continued permitted use, which is a reassuring factor for the buyer in the transaction. This positioning helps streamline the process, as buyers are usually focused on the assurance that their intended use aligns with what is already established.