Humber/Ontario Real Estate Course 4 Exam Practice

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What purpose does an acknowledgment clause serve in a real estate agreement?

To protect the seller by clarifying a material fact about the property.
To protect the buyer by assuring the property's condition.
To guarantee the condition of included chattels at closing.
To make the sale conditional on the buyer's property being sold.
To ensure all verbal communications are documented in writing.
To safeguard the buyer regarding hidden defects.

The correct answer is: To protect the seller by clarifying a material fact about the property.

An acknowledgment clause in a real estate agreement serves to protect the seller by clarifying a material fact about the property. This clause is essential for the seller as it helps ensure that all critical information and disclosures about the property are accurately documented and acknowledged by both parties involved in the agreement. By having an acknowledgment clause in place, the seller can mitigate the risk of potential disputes or legal issues related to undisclosed information about the property, ultimately protecting their interests.