Humber/Ontario Real Estate Course 4 Exam Practice

Which term refers to the final and conclusive permission to proceed with a real estate contract?

1. Consent

2. Ratification

3. Authorization

4. Final Approval

5. Agreement

6. Completion

The correct answer is: Ratification

The term that specifically refers to the final and conclusive permission to proceed with a real estate contract is ratification. Ratification occurs when all parties involved formally accept and agree to the terms and conditions of a contract, thereby giving it full legal force and effect. This term is crucial in real estate transactions as it signifies that any previous offers or negotiations have been successfully finalized and consented to by all parties. While other terms might seem related, they do not capture the essence of this final act as correctly as ratification. For instance, consent generally implies granting permission but may not denote the comprehensive acceptance often required in contractual obligations. Authorization can suggest granting power or the right to act but lacks the finality of acceptance. Final approval implies a concluding endorsement but may not encompass the formal agreement aspect inherent in ratification. Agreement signifies that parties have come to a mutual understanding, but without the formal acceptance to make it binding, it lacks the legal finality. Lastly, completion refers to fulfilling all terms of the contract but does not indicate the permission phase before that fulfillment. Thus, ratification distinctly aligns with the concept of giving conclusive permission within the context of real estate contracts.