Humber/Ontario Real Estate Course 4 Exam Practice

When drafting an offer that includes a clause for pool equipment warranties, what is essential for protecting the buyer?

1. Ensures the buyer is protected against future problems with the pool given the seller's representation/warranty.

2. Includes a statement that the seller's representation and warranty survives and does not merge on closing.

3. Is not necessary, as the condition of exterior items, such as pools, are covered in the pre-printed portion of the agreement.

4. Must be signed by both buyer and seller to be valid.

5. Must include service records of the pool equipment.

6. Should only include equipment installed within the last year.

The correct answer is: Includes a statement that the seller's representation and warranty survives and does not merge on closing.

Including a statement that the seller's representation and warranty survives and does not merge on closing is crucial for protecting the buyer when drafting an offer that incorporates a clause for pool equipment warranties. This provision ensures that any representations made by the seller about the pool equipment's condition or functionality remain valid after the closing of the transaction. In real estate transactions, when a property is sold, there is often an assumption that any warranties or representations the seller made may merge into the deed, meaning they no longer apply. By explicitly stating that the seller's representations and warranties survive the closing, the buyer maintains the right to hold the seller accountable for any issues that arise post-closing related to the pool equipment. This protection is particularly important in real estate transactions where the buyer may be unaware of existing issues with the pool equipment, and it provides a mechanism for recourse if the equipment has undisclosed problems. The other options do not address the need for this critical protection adequately, making it essential to include this clause in the offer.