Humber/Ontario Real Estate Course 4 Exam Practice

What happens if a buyer does not include a home inspection clause in the agreement of purchase and sale?

1. Buyer has a strong legal argument against the brokerage.

2. Brokerage was not diligent in referencing such services.

3. Buyer has a weak argument due to acknowledgment in the agreement.

4. Salesperson and brokerage would be found negligent.

5. Buyer can demand brokerages to fix discovered deficiencies.

The correct answer is: Buyer has a weak argument due to acknowledgment in the agreement.

The choice indicating that the buyer has a weak argument due to acknowledgment in the agreement is correct. In real estate transactions, agreements of purchase and sale often contain various clauses that either protect the buyer or clearly outline the buyer's rights. If a buyer does not include a home inspection clause, this omission typically signifies that the buyer is waiving the right to have the home inspected before finalizing the purchase. In legal terms, the buyer's acknowledgment in the agreement signifies that they understand the risks associated with not having a home inspection and have chosen to proceed without this protection. Consequently, if issues arise after the purchase that could have been discovered during an inspection, the buyer's ability to argue against the brokerage or the seller becomes significantly weaker since they voluntarily accepted the terms of the agreement, which did not include a home inspection. This acknowledgment of risk and the choice to forgo a home inspection demonstrate a level of responsibility on the buyer's part, which diminishes potential claims against the brokerage or the seller related to undiscovered deficiencies in the property. The other options suggest different scenarios that don't accurately reflect the legal understanding typically present in such transactions.