Humber/Ontario Real Estate Course 2 Exam Practice

Which statement about the 'UFFI' clause in the purchase agreement is true?

1. If a property contains UFFI, the owner must remove it prior to offering the property for sale.

2. If a property does not contain UFFI, according to the seller, a suitable clause has to be inserted in Schedule A of the agreement of purchase and sale.

3. The UFFI representation/warranty included in the preprinted agreement does not survive closing.

4. The UFFI representation/warranty would apply to a seller's freehold townhouse but not to other townhouses sharing the unit's party wall(s).

The correct answer is: The UFFI representation/warranty would apply to a seller's freehold townhouse but not to other townhouses sharing the unit's party wall(s).

In this specific case, the correct answer is D because it correctly explains that the UFFI representation/warranty would apply to a seller's freehold townhouse but not to other townhouses sharing the unit's party walls. This is essential to understand as the presence of UFFI (Urea Formaldehyde Foam Insulation) in a property may impact its saleability and value. It is crucial to specify in the agreement of purchase and sale which properties are affected by the UFFI clause to ensure clarity and protection for both the buyer and the seller. Option A is not correct because the owner is not always required to remove UFFI before offering the property for sale; it depends on the circumstances and agreements made during the sale process. Option B is also incorrect because if a property does not contain UFFI, there might not be a need to insert a clause in Schedule A. Option C is misleading as the UFFI representation/warranty indeed can survive closing, so it is important to be cautious and thorough in dealing with such clauses in real estate transactions.