Humber/Ontario Real Estate Course 2 Exam Practice

What is one requirement for a salesperson making a guarantee to buy a seller's home if unsold?

1. Promise must be related to purchase of new property

2. Promise must be in writing, detailing specific terms

3. Promise can only involve mortgage financing guarantees

4. Promise must be limited to residential property only

5. Promise cannot be made due to restrictions on inducements

6. Promise must be verbal and notarized

The correct answer is: Promise must be in writing, detailing specific terms

One requirement for a salesperson making a guarantee to buy a seller's home if unsold is that the promise must be in writing, detailing specific terms. This is essential for clarity and protection for both parties involved in the transaction. Having the guarantee in writing helps ensure that all parties have a clear understanding of the terms and conditions of the agreement, reducing the likelihood of misunderstandings or disputes later on. Option A is not correct because the promise being related to the purchase of new property is not a requirement for such a guarantee. Option C is not accurate as well since the promise does not have to only involve mortgage financing guarantees. Option D is incorrect as the promise is not limited to residential property only; it can also apply to other types of real estate. Option E states that the promise cannot be made due to restrictions on inducements, which is not a requirement but rather a limitation in certain circumstances. Option F is incorrect because verbal promises alone are not sufficient in this case; having the guarantee in writing is crucial in real estate transactions.