Humber/Ontario Real Estate Course 4 Exam Practice

What should be done if an electrical inspector identifies a wiring problem in a property after a buyer's acceptable offer has been submitted?

1. The buyer must immediately inform the seller, a mutual release would be signed, and the agreement would be canceled.

2. The buyer must hire another inspector to verify the findings.

3. The seller is responsible for fixing the problem before closing, and an amendment to the agreement would be signed.

4. The seller must immediately fix the problem.

5. The buyer has the right to cancel the agreement unilaterally.

6. The parties should renegotiate the initial offer.

The correct answer is: The seller is responsible for fixing the problem before closing, and an amendment to the agreement would be signed.

When an electrical inspector identifies a wiring problem in a property after a buyer has submitted an acceptable offer, the appropriate course of action is for the seller to address the issue before the closing of the sale. This is in line with the obligations typically included in the agreement of purchase and sale. In real estate transactions, it is common for the seller to be responsible for ensuring that the property meets all safety and legal requirements, including electrical code compliance. If such issues arise during the inspection process, the buyer can request that the seller undertake necessary repairs or upgrades to rectify the problems. This would generally involve negotiating an amendment to the original agreement, specifying the required repairs and the timeline for their completion, allowing the sale to proceed without compromising safety or legal standards. Resolving the issue before closing helps protect the buyer’s interests and ensures that the property is delivered in satisfactory condition. It also fosters mutual cooperation between the buyer and seller, facilitating a smoother transaction process.