Humber/Ontario Real Estate Course 4 Exam Practice

Which statement correctly addresses the 'UFFI' clause in the agreement of purchase and sale?

1. If a property contains UFFI, the owner must remove it prior to offering the property for sale.

2. If a property does not contain UFFI, the seller must add a suitable clause in Schedule A of the agreement.

3. The UFFI representation/warranty included in the preprinted agreement does not survive closing.

4. The UFFI representation/warranty applies to a seller's freehold townhouse but not to other townhouses sharing party walls.

5. The presence of UFFI in a property requires the buyer to conduct additional inspections before purchase.

6. UFFI is no longer a concern in modern real estate transactions.

The correct answer is: The UFFI representation/warranty applies to a seller's freehold townhouse but not to other townhouses sharing party walls.

The statement concerning the 'UFFI' (Urea Formaldehyde Foam Insulation) clause in the agreement of purchase and sale is particularly focused on its application to different types of properties. The correct answer indicates that the UFFI representation and warranty applies specifically to a seller's freehold townhouse, highlighting that it does not necessarily extend to other types of townhouses, particularly those that share party walls, such as condominium townhouses. This distinction is significant because the regulations and considerations around UFFI can vary based on the structure and ownership type of the property. In the context of real estate transactions, a seller of a freehold townhouse must disclose the presence of UFFI. This obligation may differ for townhouses that share ownership with adjoining units, which might follow different legal guidelines and disclosures due to shared structural and material characteristics. Understanding how UFFI applies to various property types is crucial for both buyers and sellers. Buyers need to be informed about the insulation type in freehold townhouses since it can impact health and safety concerns, property value, and the overall transaction process. Sellers must be aware of their disclosure responsibilities related to UFFI to avoid potential legal complications later on.