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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In the event of conditional offers, such as those contingent on financing, the removal of such conditions typically means:

The buyer cannot back out of the sale due to financing issues.
The buyer has more time to secure the necessary financing.
The seller must provide alternate financing options.
The sale can be cancelled if financing is not secured.
The buyer can renegotiate the terms if financing falls through.
The property is automatically removed from the market.

The correct answer is: The buyer cannot back out of the sale due to financing issues.

In the event of conditional offers, such as those contingent on financing, the removal of such conditions typically means that the buyer cannot back out of the sale due to financing issues. This is because once the financing condition is removed, the offer becomes firm, and the buyer is obligated to proceed with the purchase regardless of any financing challenges that may arise. This is a standard practice in real estate transactions to provide certainty and security to the seller once the buyer has confirmed their ability to secure the necessary financing. Options B, C, D, E, and F are incorrect: - Option B, stating that the buyer has more time to secure the necessary financing, is inaccurate because the removal of the financing condition indicates that the buyer has confirmed their ability to secure financing and is committed to the purchase. - Option C, suggesting that the seller must provide alternate financing options, is incorrect as the seller is not typically responsible for securing financing for the buyer. - Option D, indicating that the sale can be cancelled if financing is not secured, is not the case once the condition is removed. - Option E, mentioning that the buyer can renegotiate the terms if financing falls through, is not accurate as the removal of the financing condition solidifies the terms of the sale. - Option F, suggesting that the property is automatically removed from the market, is not necessarily true as the property remains on the market until the sale is finalized, even after the conditions are removed.