Humber/Ontario Real Estate Course 2 Exam Practice

What would typically be included in a condition precedent clause involving a new first mortgage for a buyer client?

1. A second lender as a condition.

2. A waiver provision.

3. Blended mortgage payment condition.

4. First condition in the offer only.

5. Fixed interest rate.

6. Market rate adjustments.

The correct answer is: A waiver provision.

In a condition precedent clause involving a new first mortgage for a buyer client, a waiver provision would typically be included. A waiver provision allows the party for whom the condition is intended to waive or give up their right to enforce the condition. This provision gives the buyer client the ability to waive any conditions related to the mortgage approval if they are confident in their ability to secure the financing. The other options: A. A second lender as a condition: This is not typically included in a condition precedent clause involving a new first mortgage. C. Blended mortgage payment condition: This is not a common element in a condition precedent clause for a new first mortgage. D. First condition in the offer only: This statement does not accurately describe a condition precedent clause for a new first mortgage. E. Fixed interest rate and F. Market rate adjustments: These options are related to the terms of the mortgage itself, not specifically to the condition precedent clause.