Humber/Ontario Real Estate Course 2 Exam Practice

Disable ads (and more) with a membership for a one time $2.99 payment

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.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

If Buyer Giray submits an offer contingent solely on securing a first mortgage for $350,000 at 4.25% with specified monthly payments, and the condition is waived, what effect does this have?

Buyer Giray's agreement of purchase and sale can still be modified under specific circumstances.
The condition remains, and the offer must still meet that stipulation.
Waiving the condition effectively eliminates Buyer Giray's rights associated with that condition.
The offer becomes void.
The seller must now accept any modified terms.
The mortgage details can be adjusted by the lender without affecting the sale.

The correct answer is: Waiving the condition effectively eliminates Buyer Giray's rights associated with that condition.

When Buyer Giray waives the condition of securing the first mortgage, it effectively eliminates their rights associated with that condition. By waiving the condition, Buyer Giray gives up the ability to back out of the deal if they are unable to secure the mortgage as specified in the offer. This means that Buyer Giray is now obligated to proceed with the purchase regardless of whether they are able to secure the mortgage or not. The other options are incorrect because: A. Buyer Giray waiving the condition means that the agreement of purchase and sale can no longer be modified under specific circumstances. B. By waiving the condition, it no longer remains a stipulation that must be met for the offer to be valid. D. The offer does not become void just because the condition is waived. E. The seller is not obligated to accept any modified terms once the condition is waived. F. Waiving the condition does not give the lender the ability to adjust the mortgage details without affecting the sale.