Humber/Ontario Real Estate Course 2 Exam Practice

When creating an agreement of purchase and sale, how should rental items be handled?

1. Must be removed before closing

2. Should not be mentioned in the agreement

3. Should be clearly described along with rental terms

4. Typically decrease the sale price of the home

5. Must be transferred to the new owner without conditions

6. Are a minor factor nowadays and usually ignored

The correct answer is: Should be clearly described along with rental terms

When creating an agreement of purchase and sale, rental items should be handled by clearly describing them along with the associated rental terms. This is important to avoid any confusion or disputes between the buyer and the seller regarding what items are included in the sale and if any ongoing rental agreements need to be honoured by the new owner. By clearly outlining the rental items and terms in the agreement, both parties can have a mutual understanding and prevent any potential disagreements in the future. Options A, B, D, E, and F are incorrect because they do not address the proper handling of rental items in an agreement of purchase and sale. It is crucial to clearly describe rental items along with their terms in the agreement to ensure transparency and avoid any complications down the line.