Humber/Ontario Real Estate Course 4 Exam Practice

What is the primary purpose of ‘Schedule B’ in a real estate transaction agreement?

1. To outline additional terms and conditions

2. To itemize property appliances

3. To disclose property defects

4. To list personal items included in the sale

5. To provide a mortgage approval timeline

6. To detail the payment schedule

The correct answer is: To outline additional terms and conditions

The primary purpose of ‘Schedule B’ in a real estate transaction agreement is to outline additional terms and conditions that may not be detailed in the main agreement. This segment of the contract allows the parties involved to include specific provisions that are pertinent to the transaction, which might cover aspects such as contingencies, maintenance responsibilities, or special arrangements agreed upon by the buyer and seller. By including these additional terms, Schedule B ensures that all parties are aware of their obligations and expectations, thereby reducing the potential for misunderstandings or disputes. In this context, while other choices like itemizing property appliances, disclosing property defects, listing personal items, providing mortgage timelines, and detailing payment schedules are certainly important elements of a real estate transaction, they typically belong to different parts of the agreement or are covered by other schedules or documents. Schedule B specifically serves as a place for these extra stipulations that enhance or clarify the main contract.