Humber/Ontario Real Estate Course 4 Exam Practice

The Planning Act clause in an agreement of purchase and sale includes which statement?

1. Provides that the buyer agrees to abide by municipal zoning regulations established pursuant to the Planning Act.

2. Is primarily focused on the title search process leading to land registration.

3. States that the seller agrees to obtain any necessary consents to ensure Planning Act compliance.

4. Confirms that the buyer pays any costs related to obtaining compliance with the Planning Act.

5. Ensures that any legal disputes are resolved within 90 days.

6. Stipulates that property taxes must be cleared before sale.

The correct answer is: States that the seller agrees to obtain any necessary consents to ensure Planning Act compliance.

The Planning Act clause in an agreement of purchase and sale emphasizes the responsibilities of the seller regarding compliance with local planning regulations. It specifically states that the seller agrees to obtain any necessary consents to ensure adherence to the requirements set out in the Planning Act. This is crucial because it protects the buyer from being held liable for any pre-existing non-compliance issues that may affect the property, which could pose legal and financial risks post-purchase. While other options touch on important aspects of real estate transactions, they do not accurately reflect the role that the Planning Act plays in governing the obligations related to property compliance. The focus on the seller's duty to secure these consents ensures that the transaction is valid and recognized under municipal regulations, aligning the sale with broader planning objectives.