Humber/Ontario Real Estate Course 4 Exam Practice

What must be done with the copies of an agreement of purchase and sale once a seller has accepted and signed it?

1. Are retained by the listing brokerage, but provided to buyer and seller upon request.

2. Must be delivered to all parties involved in the agreement.

3. Must be immediately delivered to the broker of record for the listing brokerage.

4. Must be delivered to all parties, but only after a trade record sheet is prepared and signed.

The correct answer is: Must be delivered to all parties involved in the agreement.

The requirement that copies of an agreement of purchase and sale must be delivered to all parties involved in the agreement reflects the importance of transparency and communication in real estate transactions. Once a seller accepts and signs the agreement, it becomes a binding contract, and all parties need to have access to the same documentation to ensure clarity around the terms and conditions agreed upon. This practice supports better coordination between parties, minimizes the potential for disputes, and ensures that everyone is on the same page regarding their obligations and rights defined in the agreement. By providing copies to all parties, it also enhances trust in the process, as each party can verify that the agreement has been signed and that they have the correct, potentially updated version of the document. In contrast, retaining copies only for internal records or merely providing them upon request would not satisfy the due diligence required in real estate transactions, compromising the accessibility and clarity of the agreement for all parties involved.