Humber/Ontario Real Estate Course 4 Exam Practice

What should be changed in the purchase offer dates to avoid extra legal costs?

1. Move the requisition date to an earlier date in July.

2. Adjust the home inspection condition date to 2 days post-requisition.

3. Extend the closing date for more time on title searches.

4. Change the agreement date to later in July.

5. Advance the completion date for better schedule alignment.

6. Adjust the dates to include a conditional financing approval period.

The correct answer is: Move the requisition date to an earlier date in July.

Moving the requisition date to an earlier date in July is a strategic decision because it allows the buyer adequate time to conduct their due diligence before the closing of the transaction. By having an earlier requisition date, the buyer can review title searches and other pertinent information related to the property, potentially identifying any issues that need to be addressed without incurring additional costs. This proactive approach helps minimize the risk of unexpected complications arising closer to the closing date, which could lead to the need for urgent legal consultations or alterations to the offer under time constraints, ultimately resulting in extra legal costs. Adjusting the home inspection condition date, extending the closing date, changing the agreement date, advancing the completion date, or including a conditional financing approval period may not directly influence the reduction of legal expenses associated with title searches and requisition reviews. These options could either delay necessary assessments or complicate timelines without the same level of benefit as moving the requisition date.