Humber/Ontario Real Estate Course 4 Exam Practice

If Buyer Jaswant is concerned about the condition of a pool that was winterized and not visually inspected, what type of clause would be necessary in the offer?

1. A representation/warranty clause.

2. An acknowledgement clause.

3. A covenant/promise clause.

4. A direction/consent clause.

5. An inspection clause.

6. A contingency clause.

The correct answer is: A representation/warranty clause.

In this scenario, where Buyer Jaswant is concerned about the condition of a winterized pool that has not been visually inspected, it would be essential to include a representation/warranty clause in the offer. This type of clause serves to clarify the seller’s assertions regarding the condition and quality of the pool. It creates an obligation for the seller to stand behind their statements about the pool's functional state, providing Jaswant with some level of assurance. By incorporating a representation/warranty clause, the buyer seeks to ensure that the seller is confirming the pool is in acceptable condition or disclosing any known issues. This can protect the buyer through the legal ramifications of false statements if the condition of the pool does not meet the seller's representations. Other types of clauses, such as acknowledgement, covenant, direction, inspection, or contingency clauses, do not directly address Jaswant’s concern regarding the pool's condition without prior inspection. For instance, an inspection clause would typically allow for an inspection to be conducted, but in this case, the buyer is looking for assurances from the seller about the current state of the pool. Thus, the representation/warranty clause is most applicable to ensure that Jaswant's interests are protected.