Humber/Ontario Real Estate Course 4 Exam Practice

What is required when negotiating an agreement of purchase and sale with respect to a new survey?

1. The seller must provide the new survey.

2. The buyer is required to provide the new survey if the seller does not have one.

3. The new survey can be undertaken at either the buyer's or seller's expense.

4. The new survey is necessary for a valid agreement of purchase and sale.

5. The real estate agent must provide the new survey.

6. The new survey is optional.

The correct answer is: The new survey can be undertaken at either the buyer's or seller's expense.

When negotiating an agreement of purchase and sale, it's essential to recognize that the responsibility for obtaining a new survey can be flexible. The correct choice reflects that the new survey can indeed be undertaken at either the buyer's or seller's expense, depending on the circumstances of the transaction and what both parties agree upon. In real estate transactions, surveys are crucial for defining property boundaries and identifying any potential encroachments or easements. While either party may opt to obtain a new survey, it often varies depending on factors such as the condition of existing surveys, lender requirements, or concerns raised during the inspection process. Therefore, reaching a mutual agreement on who bears the cost of the survey allows flexibility and encourages cooperation between the buyer and seller. It's also important to understand that the other options do not fully capture the nuances of survey responsibilities in real estate transactions. For example, stating that the seller must provide a new survey may not always be practicable, especially if the seller does not have a recent survey on hand. Similarly, while it might be advantageous for either party to obtain a survey, making it a requirement for the agreement to be valid isn’t necessarily the case in all transactions.