Humber/Ontario Real Estate Course 2 Exam Practice

How should signatures and initials be managed in a fully executed agreement of purchase and sale?

1. The agreement must be notarized by a public official.

2. Signatures are only required for initial offers.

3. Every party must complete the Acknowledgement section upon receipt.

4. Changes must be initialed by both buyer and seller only.

5. Documents could be signed digitally if all parties agree.

6. Notary involvement is mandatory.

The correct answer is: Every party must complete the Acknowledgement section upon receipt.

In a fully executed agreement of purchase and sale in Ontario real estate transactions, it is important that every party completes the Acknowledgment section upon receipt. This ensures that all parties have formally acknowledged receiving a copy of the agreement and understand its contents. Option A is incorrect because a notarization by a public official is not mandatory for managing signatures and initials in a purchase and sale agreement. Option B is incorrect as signatures are required not just for initial offers but for the full agreement. Option D is incorrect because changes in the agreement should be initialed by all parties involved, not just the buyer and seller. Option E is not the best answer as digital signatures are not always accepted in real estate transactions unless all parties agree to this method. Option F is incorrect as notary involvement is not mandatory for managing signatures and initials in a fully executed agreement of purchase and sale.