Humber/Ontario Real Estate Course 4 Exam Practice

Which statement would NOT typically be included in an acknowledgement clause?

1. The buyer acknowledges that there are no express or implied warranties on chattels included in the agreement of purchase and sale.

2. The buyer acknowledges that the home has been designated as a Heritage Property.

3. The buyer acknowledges the use of Kitec plumbing in the home.

4. The buyer acknowledges that the agreement is conditional on a satisfactory home inspection.

5. The buyer acknowledges that the home is located in a flood zone.

6. The buyer acknowledges that the home has been tested for radon gas.

The correct answer is: The buyer acknowledges that the agreement is conditional on a satisfactory home inspection.

The correct answer is that the statement regarding the agreement being conditional on a satisfactory home inspection would not typically be included in an acknowledgement clause. Acknowledgement clauses are generally used to confirm understanding and acceptance of specific terms or facts that are important to the transaction. They often highlight issues related to the property or the terms of the sale that the buyer should be aware of. The buyer's acknowledgment of issues such as the presence of Kitec plumbing, designation as a Heritage Property, or any environmental concerns like radon gas or flood risk fall within what is commonly acknowledged—these matters impact the buyer's decision and awareness about the property. On the other hand, the condition regarding the home inspection represents a term of the agreement itself, rather than an acknowledgment of existing facts. This is a crucial element of the negotiation process, meaning it indicates a buyer's condition for proceeding with the purchase rather than something the buyer is simply acknowledging about the property. Conditions outline specific requirements that must be fulfilled for the agreement to be valid, rather than confirming the acceptance of existing information or facts about the property.