Humber/Ontario Real Estate Course 2 Exam Practice

If a buyer did not include a home inspection clause but later discovers visible deficiencies after closing, what is the best description of the buyer's legal standing?

1. The buyer has a very strong legal argument against the salesperson and the brokerage

2. No action can be taken by the buyer since the transaction is closed

3. The buyer has a weak legal argument, as the agreement includes an acknowledgement relating to this issue

4. The salesperson and employing brokerage would be found negligent under the circumstances

5. The seller is liable for any undisclosed defects

6. The defects must be repaired by the previous owner

The correct answer is: The buyer has a weak legal argument, as the agreement includes an acknowledgement relating to this issue

If a buyer did not include a home inspection clause but later discovers visible deficiencies after closing, the buyer's legal standing would generally be weak. This is because the buyer is typically expected to have conducted due diligence and thoroughly examined the property before closing the transaction. By not including a home inspection clause, the buyer may have waived their right to pursue legal action based on visible defects discovered post-closing. Options A, D, E, and F are incorrect because they do not accurately reflect the legal standing of the buyer in this scenario. Option B is also incorrect as it implies that no action can be taken by the buyer at all, which is not always the case. The most appropriate choice is option C, which highlights the weaker legal argument the buyer would likely have due to the absence of a home inspection clause in the agreement and any acknowledgments related to the issue.