Humber/Ontario Real Estate Course 2 Exam Practice

After negotiating a fully signed agreement of purchase and sale, what must be done regarding signatures and initials?

1. All changes must be initialled by both parties.

2. Each party must complete the Acknowledgment section upon receipt.

3. Initials are only needed for counter-offer changes.

4. Signatures must be witnessed by a notary public.

5. The buyer’s signature must be notarized.

6. The Confirmation of Acceptance is always signed by the seller.

The correct answer is: Each party must complete the Acknowledgment section upon receipt.

After negotiating a fully signed agreement of purchase and sale, it is crucial that each party completes the Acknowledgment section upon receipt. This step is necessary to confirm that the parties acknowledge and agree to the terms and conditions stated in the agreement. It serves as a form of confirmation that the document has been received and understood by all parties involved. In comparison to the other options: A. All changes must be initialled by both parties - While changes may need to be initialled, it is not the only requirement after negotiating a fully signed agreement. C. Initials are only needed for counter-offer changes - Initials may be required for various changes, not just counter-offer changes. D. Signatures must be witnessed by a notary public - Not all signatures need to be witnessed by a notary public in this context. E. The buyer’s signature must be notarized - Notarization of signatures is not a standard requirement in this scenario. F. The Confirmation of Acceptance is always signed by the seller - The Confirmation of Acceptance may be signed by either party, depending on the specific terms of the agreement.