Humber/Ontario Real Estate Course 2 Exam Practice

When a buyer signs an agreement of purchase and sale under seal, what happens?

1. Cannot withdraw the offer once it has been presented to the seller.

2. The buyer has the option to withdraw the offer at any point up to the time that the seller accepts it.

3. Can withdraw the offer once it has been presented to the seller, but only if there are competing offers.

4. Must clearly understand that the irrevocable clause becomes binding immediately upon signing the agreement.

5. The offer can be modified after acceptance.

6. The seller must approve the withdrawal.

The correct answer is: Cannot withdraw the offer once it has been presented to the seller.

When a buyer signs an agreement of purchase and sale under seal, they cannot withdraw the offer once it has been presented to the seller. The act of signing the agreement under seal makes it a legally binding contract. This means that the buyer is committed to the terms of the offer and cannot simply change their mind and withdraw the offer once it has been presented. This is a key characteristic of agreements under seal - they are enforceable and provide a high level of certainty for both parties involved in the transaction. Options B, C, E, F are not correct because they involve scenarios where the buyer would have the ability to withdraw the offer, modify it after acceptance, or require seller approval for withdrawal. These situations would not apply to an agreement of purchase and sale under seal where the buyer's commitment is firm once the offer is presented. Option D is not the correct answer because it discusses the irrevocable clause becoming binding immediately upon signing the agreement, which is not specifically related to the buyer's ability to withdraw the offer once presented. The irrevocable clause typically refers to the period of time during which the seller must accept the offer without it being revoked by the buyer.