Humber/Ontario Real Estate Course 4 Exam Practice

What must be included in an agreement of purchase and sale in terms of possession of the property?

1. Must ensure possession is on a weekday

2. Must exclude Sunday from completion

3. Must provide for vacant possession

4. Must be 60 days after agreement acceptance

The correct answer is: Must provide for vacant possession

Providing for vacant possession in an agreement of purchase and sale is essential because it ensures that the buyer will receive the property without any occupants at the time of closing. This means that the seller must vacate the property and remove all personal belongings, thereby enabling the buyer to take full and unencumbered ownership. Vacant possession is crucial for buyers since it eliminates any uncertainties related to tenants or other occupants who may still be living on the property, which could otherwise complicate the transaction and lead to disputes or delays. Including this provision also protects the buyer's right to occupy and enjoy their new property from the moment the transaction is completed. While it might be customary to specify the timing of possession or stipulate particular days for completion, the primary legal requirement in this context is ensuring that the buyer can move into the home without any hindrances from previous owners or tenants. Thus, ensuring vacant possession is a standard practice in real estate transactions aimed at protecting the interests of the buyer.