Humber/Ontario Real Estate Course 4 Exam Practice

What issue arises if the completion date of a real estate agreement is set too close to the agreement date?

1. The buyer might incur legal costs without a binding agreement.

2. The requisition date should be moved to an earlier date in July.

3. The date for the home inspection condition should be immediately after the requisition date.

4. The closing date should be extended to allow time for title searches.

5. The requisition date should be later than the home inspection date.

6. The buyer might need additional financing approval time.

The correct answer is: The buyer might incur legal costs without a binding agreement.

The correct response highlights the challenges of setting a completion date that is too close to the date on which the agreement was made. When the timeline is tight, the buyer could potentially end up incurring legal costs for various reasons without having a binding agreement in place. If the completion date is immediately following the agreement date, there may not be sufficient time to address any required legal processes or due diligence. For instance, the buyer would need time to conduct searches, review title documents, and finalize financing. If these processes are rushed or left incomplete, it can lead to complications that potentially result in legal costs or disputes. Other issues may arise related to logistics, such as inspections and financing approvals, which also require time to be processed adequately. However, the highlighted concern specifically relates to the legal implications of a rushed timeline, making it crucial for all parties involved to set realistic and achievable deadlines to avoid unnecessary legal entanglements.