Humber/Ontario Real Estate Course 2 Exam Practice

If a real estate offer includes a condition about securing mortgage financing, which statement is true?

1. The condition can be ignored if the buyer changes their mind.

2. The condition is usually set for the seller’s benefit.

3. Time sensitivity must be maintained for condition fulfillment.

4. A strict, specific date should be indicated for clarity.

5. Legal action cannot be taken if the financing condition is not met.

6. The condition should be left open-ended for flexibility.

The correct answer is: Time sensitivity must be maintained for condition fulfillment.

The correct answer is C - Time sensitivity must be maintained for condition fulfillment. When a real estate offer includes a condition related to securing mortgage financing, time sensitivity is crucial for the condition to be fulfilled. The buyer must work diligently to secure the required financing within the specified time frame to proceed with the transaction. Failure to meet the deadline could impact the validity of the offer and potentially lead to the collapse of the deal. Options A, B, D, E, and F are incorrect because: - A condition regarding mortgage financing cannot be ignored at will by the buyer, as it is a crucial element in the offer. - While the condition may indirectly benefit the seller by ensuring that the buyer can secure financing, the primary purpose is to protect the buyer's interests. - It is important to have a specific time frame for condition fulfillment to avoid any misunderstandings or delays. - Legal action may be taken if the financing condition is not met, especially if the condition was not fulfilled within the agreed-upon timeframe. - Leaving the condition open-ended can create ambiguity and lack of structure in the offer, which is not advisable in real estate transactions.