Humber/Ontario Real Estate Course 4 Exam Practice

Why should a buyer arrange a pre-closing inspection of included appliances when the Agreement of Purchase and Sale includes a warranty clause for appliances?

1. The seller will be liable for repairs if any appliance fails shortly after closing.

2. The warranty only protects the buyer until closing, not afterwards.

3. The clause applies only to structural matters, not appliances.

4. The buyer might not be adequately protected without a waiver clause.

5. The warranty lasts only for one year post-closing.

6. The seller is required to replace any faulty appliance found before the closing.

The correct answer is: The warranty only protects the buyer until closing, not afterwards.

Arranging a pre-closing inspection of included appliances is important because the warranty clause in the Agreement of Purchase and Sale typically protects the buyer only until the closing date. This means that if any issues with the appliances arise after closing, the buyer may not have recourse under the warranty clause. Conducting a pre-closing inspection allows the buyer to identify any concerns or necessary repairs before the official transfer of ownership occurs, ensuring that they take possession of the appliances in good condition. Additionally, it's important to understand that warranties may not extend protection once the ownership is transferred. This underscores the value of verifying appliance functionality prior to closing, ensuring the buyer is making an informed decision about the purchase.