Humber/Ontario Real Estate Course 2 Exam Practice

What detail is often included in a standard Agreement of Purchase and Sale to offer protection to the buyer?

1. Clause regarding the seller's financial history

2. The seller's promise to assist with future home improvements

3. Clause about satisfactory home inspection

4. The promise of a price reduction at closing

5. The buyer's exemption from future tax increases

6. The buyer's waiver of any defects found post-sale

The correct answer is: Clause about satisfactory home inspection

In a standard Agreement of Purchase and Sale, a clause about a satisfactory home inspection is often included to offer protection to the buyer. This clause allows the buyer to conduct a professional home inspection to ensure that the property is in acceptable condition before finalizing the purchase. If any issues are identified during the inspection, the buyer can negotiate repairs or potentially back out of the deal if the issues are significant. This clause helps the buyer make an informed decision and protects them from purchasing a property with undisclosed defects. The other options are not typically included in the standard Agreement of Purchase and Sale for protection to the buyer. A clause regarding the seller's financial history, the seller's promise to assist with future home improvements, the promise of a price reduction at closing, the buyer's exemption from future tax increases, and the buyer's waiver of any defects found post-sale are generally not standard provisions in the agreement meant for buyer protection.