Humber/Ontario Real Estate Course 4 Exam Practice

Which term in the seller representation agreement is correctly defined?

1. The term 'vendor' refers to both a seller and a potential buyer.

2. The phrase 'listing period' refers to the number of days between commencement of the agreement and termination of the holdover provision.

3. The term 'purchase' includes an option to purchase that has been exercised.

4. The phrase 'anyone introduced or shown the property' does not include the spouse of that individual.

5. The term 'agreement period' includes any extensions.

6. The term 'buyer' only refers to an individual, not an entity.

The correct answer is: The term 'purchase' includes an option to purchase that has been exercised.

The term 'purchase' is accurately defined to include an option to purchase that has been exercised. This is significant in real estate transactions, as the term 'purchase' is commonly understood to encompass a variety of scenarios where a buyer may acquire property, including cases where a buyer has previously held an option to purchase and has acted on that option. Understanding this definition is crucial for parties involved in real estate transactions, as it clarifies the buyer's rights in relation to options that may have been granted prior to the actual purchase. It ensures that both the seller and buyer recognize that an executed option to purchase legally binds the parties to complete the transaction under the terms outlined in the option agreement. This is essential for ensuring transparency in the transaction process and for preventing any misunderstandings regarding the buyer's status and rights when entering into a real estate contract.