Humber/Ontario Real Estate Course 2 Exam Practice

If an agreement includes a condition precedent for an environmental inspection, what can the buyer do if minor contamination is found?

1. The agreement is voided automatically due to contamination

2. The buyer can choose to waive the condition

3. The seller can terminate the agreement

4. The buyer must accept the condition as-is

5. The seller can retain the deposit from the buyer

6. The property must be decontaminated before closing

The correct answer is: The buyer can choose to waive the condition

In this scenario, if the agreement includes a condition precedent for an environmental inspection and minor contamination is found during that inspection, the buyer has the option to choose to waive the condition. This means that the buyer can decide to move forward with the purchase of the property despite the minor contamination that was discovered. By choosing to waive the condition, the buyer is essentially stating that they are willing to proceed with the purchase regardless of the contamination issue. The other options are not correct: - A. The agreement is not automatically voided due to contamination; the buyer has the choice to waive the condition or negotiate with the seller. - C. The seller cannot unilaterally terminate the agreement based on the presence of minor contamination; the buyer has the right to choose whether to proceed or not. - D. The buyer is not obligated to accept the condition as-is; they have the option to waive the condition. - E. The seller retaining the deposit is not the appropriate action in this situation unless agreed upon in the terms of the agreement. - F. The property being decontaminated before closing is not a mandatory requirement unless agreed upon as a condition in the agreement.