Humber/Ontario Real Estate Course 4 Exam Practice

What should a buyer consider when planning to convert a single-family home into a triplex?

1. Include the current zoning information in the purchase agreement.

2. Insert a condition allowing time for rezoning application.

3. Claim that the current use cannot be legally continued.

4. Leave zoning details blank as rezoning should be straightforward.

5. Furnish survey details to support rezoning.

6. Ensure the property is located in a mixed-use zone.

The correct answer is: Insert a condition allowing time for rezoning application.

When planning to convert a single-family home into a triplex, it is crucial for a buyer to allow time for the necessary rezoning application as part of the purchasing process. Including a condition in the purchase agreement that permits the buyer to seek the appropriate rezoning is essential for several reasons. First, the current zoning regulations may not permit a triplex in that location, and the buyer must secure permission through a formal application to rezone the property. This process can take time and may involve public hearings, which makes it impractical to assume that rezoning will be an immediate or straightforward task. Allowing time for this process in the purchase agreement provides the buyer with some protection against the risk of investing in a property that cannot be converted as planned. Additionally, having a condition related to rezoning acknowledges the importance of due diligence in real estate transactions. Buyers should ascertain whether their intended use aligns with local zoning laws, and allowing for a rezoning process in the agreement gives them a clear timeframe to pursue these necessary changes without the pressure of completing the purchase before they know the feasibility of their plans. This careful consideration helps mitigate risk, ensuring that if the rezoning efforts are unsuccessful, the buyer can withdraw from the agreement without incurring significant losses.