Humber/Ontario Real Estate Course 4 Exam Practice

What does a seller's removal of a built-in bar prior to closing imply for an accepted unconditional offer?

1. Innates insurance company covers it

2. Nullifies the agreement

3. Change in property conditions

4. Requires mutual consent for removal

5. Results in the seller compensating the buyer

6. No impact if itemized in listing

The correct answer is: Results in the seller compensating the buyer

The correct interpretation in this scenario is that the removal of a built-in bar by the seller before closing can lead to the seller compensating the buyer. This is based on the understanding that an accepted unconditional offer typically includes all fixtures and fittings as part of the property unless specified otherwise. If the built-in bar is considered a fixture, its removal without prior agreement could be seen as an alteration of the property that was agreed upon in the transaction. In such cases, the buyer could have grounds to seek compensation for the value of the removed item since the buyer was led to believe that the built-in bar would be included in the sale. It is essential in real estate transactions for both buyers and sellers to understand the implications of removing items that are typically expected to remain with the property, especially after an unconditional offer has been made. This situation emphasizes the importance of clearly itemizing and agreeing upon which fixtures will remain in the property during the transfer process. If such terms are not outlined, the buyer's expectation based on the original agreement could necessitate compensation from the seller for any perceived loss of value in the home.