Humber/Ontario Real Estate Course 4 Exam Practice

What must a completion date in an agreement of purchase and sale include?

1. Completion no later than a specified time during that day

2. Being exactly 60 days following acceptance

3. Providing for vacant possession

4. Completion on any day except Sunday

The correct answer is: Completion no later than a specified time during that day

The requirement for the completion date in an agreement of purchase and sale to specify that it must be no later than a certain time during that day is significant due to the nature of property transactions. This clarity allows both parties involved—the buyer and the seller—to have a mutual understanding of when the transaction will be finalized. A specific completion time ensures that all necessary arrangements, such as the transfer of funds and possession of the property, can occur smoothly and without ambiguity. By formally stating a deadline for the completion, it helps to minimize potential disputes that could arise if one party believes the transaction has been completed too early or too late. This detail is critical in avoiding misunderstandings related to obligations and timing, which are essential in real estate transactions. While providing vacant possession is important in the sale process, it is a separate consideration from the actual timing of completion. Similarly, the other options related to a fixed number of days or restrictions on which days the completion can take place do not address the necessity of defining a precise time on the completion date, which is why that specification is paramount.