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.

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!

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If Buyer Monaldo dies before closing, what happens to the agreement of purchase and sale?

An heir, who inherits Buyer Monaldo's entire estate, would not be bound by the terms of this agreement.
The agreement of purchase and sale provides that the agreement becomes null and void if either the buyer or seller dies before closing.
The agreement remains enforced, and the executor for Buyer Monaldo's estate is bound by its terms.
The agreement is transferred automatically to next of kin without review.
The seller can opt to cancel the agreement unilaterally.
Wording of the agreement changes automatically to include new parties involved.

The correct answer is: The agreement of purchase and sale provides that the agreement becomes null and void if either the buyer or seller dies before closing.

If Buyer Monaldo dies before closing, the agreement of purchase and sale typically becomes null and void. This is a common provision in real estate agreements to protect both parties in case of unexpected events, such as the death of one of the parties involved. In such a situation, it is important for the agreement to address what happens in the event of the death of either the buyer or the seller to ensure clarity and fairness for all parties involved. Therefore, option B is the correct answer in this scenario. Options A, C, D, E, and F are incorrect: - Option A assumes that an heir inheriting the estate would not be bound by the terms of the agreement, which is not typically the case. - Option C suggests that the executor of the estate would be bound by the terms of the agreement, which is not always the case and depends on the specific circumstances and legal requirements. - Option D implies an automatic transfer of the agreement to the next of kin, which is not a standard practice in real estate transactions. - Option E states that the seller can unilaterally cancel the agreement, which may not be allowed without proper legal justification. - Option F suggests that the wording of the agreement would automatically change to include new parties, which would generally require a formal amendment rather than an automatic change.