Humber/Ontario Real Estate Course 2 Exam Practice

An offer is drafted by Salesperson Mark for Buyer Sofia with the following terms: Purchase Price: $575,000; Deposit: $25,000 Upon Acceptance; Included Chattels: Refrigerator, Treadmill; Schedule A: Additional Deposit: $50,000 Upon Removal of Conditions; Home Inspection Condition. What can be inferred from the offer conditions?

1. All chattels included are properly listed.

2. Deposits must be kept in an interest-bearing account.

3. Home inspections are already covered by pre-printed clauses and thus redundant.

4. The total balance due on closing is $500,000.

The correct answer is: All chattels included are properly listed.

The correct answer is A. This can be inferred from the offer conditions because the offer clearly lists the included chattels as the refrigerator and treadmill. Listing all chattels included in the transaction helps to ensure that both parties have a clear understanding of what is included in the purchase to avoid any confusion or disagreements later on. Option B is incorrect because while it is a good practice to keep deposits in an interest-bearing account, this is not explicitly mentioned in the offer conditions provided. Option C is incorrect as home inspection conditions are not redundant; they provide protection for the buyer by allowing them to conduct a home inspection and potentially negotiate any necessary repairs or adjustments based on the findings. Option D is incorrect as the total balance due on closing can be calculated by subtracting the total deposits from the purchase price, which would be $500,000 in this case ($575,000 - $25,000 - $50,000).