Humber/Ontario Real Estate Course 4 Exam Practice

When an owner wants to sell part of their land that does not currently exist as a separate lot, what is advisable?

1. The sale can proceed without any formal planning approvals.

2. The agreement should include a condition for planning consent.

3. The owner must first register the lot as a new parcel of land.

4. The sale can proceed only if new lots are divided equally.

5. Municipality consent is needed prior to drafting any agreement.

6. No sale can be made until a legal survey is completed.

The correct answer is: The agreement should include a condition for planning consent.

It is advisable for the agreement to include a condition for planning consent in this situation because selling off part of the land as a separate lot may require approval from local planning authorities. Option A is incorrect because it assumes that no approvals are needed, which is not always the case. Option C is incorrect because registering the lot as a new parcel of land is not the same as obtaining planning consent. Option D is incorrect because dividing new lots equally may not be possible or necessary. Option E is incorrect because while municipality consent may be needed, it is not the only requirement for selling off part of the land. Option F is incorrect because a legal survey may not be the only step needed for selling off part of the land. Thus, the best choice is B because it accounts for the potential need for planning consent in the process of selling off part of the land as a separate lot.