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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What purpose does an escape clause serve in real estate transactions?

Allows the buyer to back out if they can't sell their current property.
Allows the seller to continue showing the property while accepting contingent offers.
Is minimally impactful for a property's marketability.
Is emphasized more in a seller's market conditions rather than a buyer's.
Requires sellers to cease further viewings once an offer is accepted.
Ensures the sale must close within a short time.

The correct answer is: Allows the buyer to back out if they can't sell their current property.

An escape clause in real estate transactions serves the purpose of allowing the buyer to back out of the deal if they are unable to sell their current property. This clause provides a level of protection for the buyer by giving them an opportunity to exit the agreement if they are unable to meet a specific condition, in this case, selling their current property. This can be crucial for buyers who are relying on the sale of their existing home to fund the purchase of a new one. The other options are incorrect because they do not accurately describe the purpose of an escape clause. Option B is incorrect as it refers to the seller's ability to continue showing the property while accepting contingent offers, which is not related to an escape clause. Option C is incorrect because an escape clause can have a significant impact on a property's marketability, especially if it includes specific conditions. Option D is incorrect because the emphasis on an escape clause can vary depending on the specific circumstances of the real estate market, rather than being solely focused on either a seller's or buyer's market. Option E is incorrect as an escape clause does not necessarily require sellers to stop further viewings once an offer is accepted. Option F is incorrect as an escape clause does not mandate that the sale must close within a short time; it instead allows for an exit strategy for the buyer under specific conditions.