Humber/Ontario Real Estate Course 4 Exam Practice

Which statement is accurate regarding an offer drafted with an agreement date of June 29 and a buyer's signature date of June 30?

1. The irrevocable time must be set during regular business hours.

2. An error has been made as the agreement date precedes the signature date.

3. The deposit cheque should be dated no earlier than the irrevocable date.

4. The buyer must provide a deposit dated the same day as the signature date.

The correct answer is: The buyer must provide a deposit dated the same day as the signature date.

The statement regarding the buyer needing to provide a deposit dated the same day as the signature date is accurate because it aligns with real estate practices. Typically, deposits are expected to demonstrate the buyer’s commitment to the offer, and it is considered best practice for the deposit to be dated on or immediately following the date of the buyer's signature. This ensures that the deposit reflects the buyer's intention to proceed with the transaction in a timely manner, thus mitigating potential misunderstandings about the commitment. Furthermore, while the other options touch upon important aspects of real estate transactions, they either misinterpret standard practices or suggest conditions that are not necessarily required in this scenario. For instance, requiring the irrevocable time to be during regular business hours is not a hard-and-fast rule as offers can be presented outside those times, and while agreement dates and signature dates need to align logically, there is no intrinsic error if the offer is crafted properly. Lastly, while deposits must be timely, they are not strictly required to have the same date as the signature if the context and practices allow for flexibility. Thus, understanding that deposits should reinforce the commitment made by the buyer on the day of signing clarifies the rationale behind the correct statement.