Humber/Ontario Real Estate Course 4 Exam Practice

When protecting a buyer's interest in a property with a pool that cannot be inspected in winter, what is the best strategy?

1. Obtain verbal assurances from the seller regarding the pool's condition.

2. Include a warranty clause with a spring termination date.

3. Make two deposits; one upon signing and one post-closing.

4. Add an acknowledgment by the seller about the pool's condition.

5. Ensure the pool is inspected by a professional post-closing.

6. Have the seller reduce the listing price accordingly.

The correct answer is: Include a warranty clause with a spring termination date.

Including a warranty clause with a spring termination date is a strategic approach when it comes to protecting a buyer's interest in a property with a pool that cannot be inspected during winter. This method allows the buyer to obtain assurances regarding the condition of the pool while also providing a clear timeframe to address any potential issues. When a warranty clause is included, it typically outlines what the seller guarantees about the pool's condition. Setting a spring termination date allows the buyer to wait until the weather permits an actual inspection, giving them the opportunity to assess the pool properly once it is accessible. If any problems are identified during the inspection, the buyer can have specific recourse based on the warranty terms, ensuring their interests are safeguarded. This strategy effectively balances the need for assurance with the practical realities of seasonal limitations on inspections. Other strategies may not provide the same level of protection or reassurance. Verbal assurances from the seller may lack the legal weight necessary to hold them accountable if issues arise later. Making two deposits could complicate the transaction and does not directly address the inspection of the pool. Having the seller acknowledge the pool's condition may not be sufficient to protect the buyer if problems are discovered later. Ensuring the pool is inspected post-closing shifts the risk to the buyer