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 property is sold firm under a condition of buyer arranging financing, what is true regarding this transaction?

The property remains in marketable condition
The sale is final and binding subject to the financing condition
The seller is free to accept backup offers
The buyer can withdraw after three days

The correct answer is: The sale is final and binding subject to the financing condition

In this scenario, the correct answer is B. When a property is sold firm under a condition of the buyer arranging financing, the sale is indeed final and binding subject to the financing condition. This means that both the buyer and the seller are committed to the sale, and the transaction will only be completed if the buyer can secure financing as specified in the agreement. Regarding the other options: A. The property remains in marketable condition: This statement does not directly relate to the sale being firm under a financing condition. C. The seller is free to accept backup offers: If a property is sold firm under a financing condition, the seller typically cannot accept backup offers as the primary sale is already binding. D. The buyer can withdraw after three days: If the sale is firm under a financing condition, the buyer cannot simply withdraw from the agreement after three days unless the financing condition has not been met within the specified timeframe. Ultimately, option B is the most accurate statement about a transaction where a property is sold firm under a condition of the buyer arranging financing.