Humber/Ontario Real Estate Course 2 Exam Practice

How should the seller construct a clause concerning the working condition of a pool in a purchase agreement?

1. A statement that the pool is in proper working order with no further assurances needed

2. A statement ensuring the equipment will survive the transaction merge

3. A statement that there will be a warranty but not necessarily surviving the closing

4. A statement that the current condition is covered by the pre-printed portion of the agreement

5. No statement is necessary about the pool's condition

6. A statement that the seller’s representation does not merge on closing

The correct answer is: A statement that the seller’s representation does not merge on closing

In this case, the correct answer is F. Including a statement that the seller’s representation does not merge on closing is important when constructing a clause concerning the working condition of a pool in a purchase agreement. This type of statement clarifies that the seller’s representations regarding the pool's condition are not limited by or merged into the final closing of the transaction. It ensures that the seller can still be held accountable for any issues with the pool that may arise after the closing of the sale, providing a level of protection for the buyer. Options A, B, C, and D are incorrect because they do not provide the necessary clarification regarding the seller’s representation and do not address the issue of whether the representation will survive the closing of the transaction. Option E is also incorrect because it suggests that no statement is necessary about the pool's condition, which could leave the buyer unprotected in case issues with the pool arise after the closing.