Humber/Ontario Real Estate Course 2 Exam Practice

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Prepare for the Ontario Real Estate Exam with our comprehensive Humber Course 2 Exam Practice quiz. Engage with multiple choice questions and detailed explanations, designed to help you excel.

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If a buyer's lawyer finds a lien on the property during the title search, what should the lawyer do?

Immediately pay out the lien on behalf of his buyer client and then collect the lien amount from the seller's lawyer
Make note of this situation and resolve it on the completion date
Not be concerned, as the lien does not directly affect title to the property
Report this title problem to the seller's lawyer during the requisition period set out in the agreement of purchase and sale

The correct answer is: Report this title problem to the seller's lawyer during the requisition period set out in the agreement of purchase and sale

If a buyer's lawyer discovers a lien on the property during the title search, the correct course of action is to report this title problem to the seller's lawyer during the requisition period set out in the agreement of purchase and sale. This is the appropriate step as it ensures that the issue is addressed in a timely manner and allows for potential resolutions or negotiations between the parties involved before the completion date. Option A is incorrect because the buyer's lawyer should not pay out the lien on behalf of the client without consulting with the seller's lawyer first to determine the appropriate course of action. Option B is not the best approach as resolving a lien on the completion date may lead to complications and delays in the closing process. Option C is also incorrect as a lien can indeed directly affect the title to the property and should not be disregarded.