Humber/Ontario Real Estate Course 2 Exam Practice

Which of the following describes the advisable practice to protect a buyer's interest in the 'Title Search' clause regarding present use?

1. Always include the current zoning in the blank space provided for 'present use' in the Title Search clause.

2. Inserting the present use (e.g., single-family residential) is not required under the 'Title Search' clause but is recommended to better protect the buyer's interest.

3. If a future use is contemplated, information regarding that use should be inserted in the blank space under 'Future Use' in the agreement.

4. If a future use is contemplated, it is sufficient to insert those details in the blank space provided for 'present use' in the Title Search clause.

The correct answer is: Inserting the present use (e.g., single-family residential) is not required under the 'Title Search' clause but is recommended to better protect the buyer's interest.

The correct answer is B because while inserting the present use in the 'Title Search' clause is not technically required, it is highly recommended in order to provide clarity and protection for the buyer's interest. Specifying the present use, such as identifying the property as single-family residential or commercial, can help ensure that the buyer has a clear understanding of what they are purchasing and can prevent any future disputes regarding the property's use. This information can also be crucial for determining whether the property complies with zoning bylaws and other regulations. Ultimately, including the present use in the 'Title Search' clause can help protect the buyer's interests and prevent any misunderstandings or issues down the line. Option A is incorrect because while including the current zoning may be important, it is not the only aspect of the present use that should be specified in the 'Title Search' clause. The present use should encompass more than just zoning information. Option C is incorrect because information about future use should not be included in the present use section of the 'Title Search' clause. Future use considerations should be addressed separately, such as in the blank space provided for 'Future Use' in the agreement. Option D is incorrect because it suggests inserting details about future use in the present use section, which could lead to confusion and misunderstandings. It is essential to differentiate between present and future use in the 'Title Search' clause for clarity and accuracy.