Humber/Ontario Real Estate Course 4 Exam Practice

What is typical for a property inspection condition in an agreement of purchase and sale?

1. Added to mitigate risks for the seller.

2. Forms part of pre-printed clauses in the agreement.

3. Should be discouraged unless it's a buyer's market.

4. Arranged by the buyer at their expense.

5. Is optional based on regional regulations.

The correct answer is: Arranged by the buyer at their expense.

The practice of having a property inspection condition is indeed common in real estate transactions, and the arrangement is typically made by the buyer at their own expense. This approach allows buyers to conduct due diligence to identify any potential issues with the property before finalizing the purchase. The responsibility placed on the buyer to arrange and cover the inspection costs reflects the buyer’s vested interest in ensuring the property's condition aligns with their expectations and the offered price. This process is crucial, as it empowers buyers to make informed decisions regarding their investment and potentially negotiate repairs or adjustments based on the findings of the inspection report. Overall, incorporating a property inspection condition serves as an additional layer of protection for buyers, who generally benefit the most from this proactive step. The other options do not accurately reflect the standard practices or roles associated with a property inspection condition in an agreement of purchase and sale.