Humber/Ontario Real Estate Course 4 Exam Practice

Which of the following is correct regarding various acknowledgements and assumptions in the agreement of purchase and sale?

1. The agreement assumes that the seller has complied with the subdivision control provisions of the Planning Act.

2. Minor utility easements are a valid reason to object to title during the requisition period.

3. The seller warranties the property is suitable for the buyer's intended future use.

4. Buildings remain at the risk of the buyer from offer acceptance date to completion date.

5. The buyer can request a land survey during the requisition period.

6. The seller is responsible for utility transfer.

The correct answer is: The agreement assumes that the seller has complied with the subdivision control provisions of the Planning Act.

The correct choice highlights an important aspect of real estate transactions in Ontario. When an agreement of purchase and sale is made, it is implicitly understood that the seller has complied with relevant subdivision control provisions of the Planning Act. This assumption is significant because it protects the buyer from potential legal complications or non-compliance issues that could arise after the sale. If the seller were not in compliance, it could lead to disputes, legal liabilities, or even the invalidation of the sale. It’s crucial for buyers and their agents to be aware of this presumption, as it affects the legal standing of the transaction. This assumption underpins the integrity of the process and provides a level of assurance that the buyer can rely on the seller’s adherence to local law, promoting a smoother transfer of ownership. The other statements describe specific situations or responsibilities that do not align with the assumptions made in the agreement related to the Planning Act. Understanding these distinctions can help reinforce the importance of ensuring that the legal prerequisites are met to foster confidence in real estate dealings.