Humber/Ontario Real Estate Course 4 Exam Practice

Why might a buyer include a home inspection condition in an offer?

1. Reduce the risk for the seller.

2. Common practice when selling homes.

3. Always included in pre-printed agreements.

4. Mitigate risks by identifying potential property issues.

5. To comply with FINTRAC requirements.

The correct answer is: Mitigate risks by identifying potential property issues.

Including a home inspection condition in an offer is primarily aimed at mitigating risks by identifying potential property issues. When a buyer requests a home inspection, it allows them to thoroughly evaluate the property before finalizing the purchase. This step is crucial because it provides insights into the home's condition, uncovering any underlying problems such as structural damage, issues with plumbing or electrical systems, or pest infestations. By having this information, the buyer can make a more informed decision and potentially negotiate repairs or concessions with the seller. Ultimately, this protective measure helps the buyer avoid unexpected expenses and ensures that they are making a sound investment. The other options do not accurately capture the main intention behind including a home inspection condition. While it is true that home inspections may be common practice, they are not universally included in every offer. Similarly, pre-printed agreements are not standard across all transactions, and compliance with FINTRAC relates to different regulatory requirements that do not involve home inspections. Thus, the focus on identifying potential property issues effectively underscores the significance of including a home inspection condition in an offer.