Humber/Ontario Real Estate Course 2 Exam Practice

If a buyer includes three conditions in an offer (mortgage, home inspection, and well water test), which is correct?

1. Each condition should have different expiry dates

2. Waiving one condition removes all three if grouped together

3. A 10-day stacked condition with an escape clause is best if feasible

4. A single condition checkbox should handle all conditions within a one-week period

5. The conditions should all be presented as non-negotiable

6. Waiving any one condition nullifies all agreements

The correct answer is: Waiving one condition removes all three if grouped together

The correct answer is B because when multiple conditions are grouped together in an offer, waiving one condition will remove all the conditions. This means that if the buyer decides to waive the mortgage condition, for example, the home inspection and well water test conditions will also be automatically removed. This is an important aspect to consider when structuring an offer with multiple conditions as it simplifies the process of dealing with the offer in case any of the conditions need to be waived or fulfilled. Options A, C, D, and E are not the correct answers because they do not accurately reflect how multiple conditions in an offer typically work in real estate transactions. Option F is also not correct as waiving one condition does not necessarily nullify all agreements but rather removes all the conditions that were grouped together.