Humber/Ontario Real Estate Course 4 Exam Practice

The executor of a deceased buyer's estate:

1. Is not bound by the buyer's purchase agreements

2. Must honor terms of the purchase agreements

3. May reject terms based on probate court decision

4. Can renegotiate terms exclusively

5. Has the option to continue or void the purchase

6. Delegates the agreement responsibilities to an heir

The correct answer is: Must honor terms of the purchase agreements

The correct answer is B: Must honor terms of the purchase agreements. In real estate, when a buyer passes away before completing the purchase of a property, the executor of the buyer's estate steps into the buyer's shoes and is legally obligated to honor the terms of the purchase agreements. This means that the executor must fulfill the requirements of the contract, including completing the purchase of the property and any other obligations outlined in the agreement. The other options are incorrect: - A. Is not bound by the buyer's purchase agreements: This is incorrect because the executor is bound by the agreements made by the deceased buyer. - C. May reject terms based on probate court decision: The executor cannot unilaterally reject the terms of the purchase agreements based on a probate court decision. The executor must adhere to the existing agreements. - D. Can renegotiate terms exclusively: The executor does not have the sole authority to renegotiate terms of the purchase agreements. They are typically required to fulfill the existing terms. - E. Has the option to continue or void the purchase: The executor is generally obligated to continue with the purchase as per the existing agreements, rather than having the option to void it. - F. Delegates the agreement responsibilities to an heir