Humber/Ontario Real Estate Course 4 Exam Practice

What legal recourse does a seller have if a buyer fails to sell their property within a conditional period?

1. None, the agreement becomes null and void.

2. The seller may seek damages, to be determined by the court.

3. The agreement cannot be terminated for unfulfilled conditions.

4. The buyer can extend the conditional period unconditionally.

5. The seller can terminate the agreement immediately.

6. The seller can seek arbitration to decide damages.

The correct answer is: The seller may seek damages, to be determined by the court.

The correct answer is that the seller may seek damages, to be determined by the court. In a real estate transaction, if a buyer has a conditional agreement to sell their property and fails to do so within the specified period, the seller has the right to pursue damages as a remedy for the buyer's failure to fulfill the condition. This often involves the seller demonstrating how they have been adversely affected by the buyer's inability to complete the sale, such as financial losses incurred by waiting for the transaction to finalize. Legal frameworks typically allow sellers to seek damages when buyers breach conditions of a contract, as this promotes accountability and protects the seller's interests. The actual amount of damages would be determined by the court based on the specifics of the case and the harm suffered by the seller. The other options do not align with established legal principles in real estate agreements. For instance, the assertion that the agreement becomes null and void is misleading, as this does not automatically relieve the buyer of liability for damages. The idea that the agreement cannot be terminated for unfulfilled conditions contradicts the fundamental tenets of contractual obligations. Extending the conditional period unconditionally is also not a standard practice, as the buyer would typically have to negotiate such an extension with the seller. Lastly,