Humber/Ontario Real Estate Course 2 Exam Practice

Why are rental items important in an agreement of purchase and sale?

1. They usually diminish the property's market value

2. The buyer must always assume them

3. They should be detailed with rental arrangements

4. They are often removed before sale

5. They typically do not influence negotiations

6. They need not be mentioned if few exist

The correct answer is: They should be detailed with rental arrangements

Rental items are crucial in an agreement of purchase and sale because they should be detailed with rental arrangements. Including a clear description of the rental items and any associated agreements in the purchase and sale agreement helps prevent misunderstandings or disputes between the buyer and seller. It ensures that both parties are aware of the presence and terms related to any rental items in the property. Therefore, option C is the correct choice. On the other hand: A. Rental items do not usually diminish the property's market value. B. It is not necessary for the buyer to always assume rental items. D. Although rental items can be removed before the sale, it is essential to address this in the agreement. E. Rental items can indeed influence negotiations, especially if there are significant or valuable items involved. F. Even if there are few rental items, it is still important to mention them in the agreement to avoid any confusion.