Humber/Ontario Real Estate Course 2 Exam Practice

What happens if a buyer's offer contains a condition for selling their existing home but they make no effort to sell it, and the market weakens during this period?

1. The buyer client has the right to extend his conditional period if he so wishes and the seller cannot object to this extension if there are valid reasons for it.

2. The agreement cannot be terminated, even if the condition is not fulfilled.

3. The seller has no legal recourse against the buyer for any damages associated with this situation because the condition is not fulfilled and the agreement simply becomes null and void.

4. The seller has the right to take legal action against the buyer, but the matter of damages would have to be quantified by the seller and the merits of such damages then determined by the Court.

The correct answer is: The seller has the right to take legal action against the buyer, but the matter of damages would have to be quantified by the seller and the merits of such damages then determined by the Court.

In this scenario, the correct answer is D because if the buyer's offer includes a condition to sell their existing home but they do not make any effort to sell it and the market weakens, the seller does have the right to take legal action against the buyer. The issue at hand would revolve around quantifying the damages incurred by the seller due to the buyer's inaction. If the seller chooses to pursue legal action, the court would then assess the merits of the damages claimed by the seller. This is the most appropriate course of action in such a situation, as the buyer's failure to fulfill the condition has potentially put the seller at a disadvantage given the changing market conditions. Options A, B, and C are incorrect because they do not adequately address the seller's rights or potential legal recourse in this specific scenario.