Humber/Ontario Real Estate Course 2 Exam Practice

Why is a clause concerning the Planning Act included in the purchase and sale agreement?

1. This clause authorizes the buyer to search the title of the property

2. This clause ensures that the seller provides a survey to the buyer

3. This clause protects the buyer if a severance is required to transfer title

4. Protect the seller if the present use is not lawful

5. Ensure compliance with zoning laws

6. Guarantee the legality of property boundaries

The correct answer is: This clause protects the buyer if a severance is required to transfer title

A clause concerning the Planning Act is included in the purchase and sale agreement to protect the buyer if a severance is required to transfer the title. The Planning Act governs land use planning and development control in Ontario. In real estate transactions, issues related to severances, where a portion of land is split from a larger parcel, can arise. By including a clause related to the Planning Act, the buyer is protected in case a severance is needed to ensure the transfer of title proceeds smoothly. The other options are not directly related to the Planning Act or the necessity to include a clause concerning this act in the purchase and sale agreement: - Option A talks about authorizing the buyer to search the title of the property, which is not directly linked to the Planning Act. - Option B mentions ensuring the seller provides a survey to the buyer, which is unrelated to the Planning Act. - Option D refers to protecting the seller if the present use is not lawful, which is not the main purpose of including a Planning Act clause. - Option E discusses ensuring compliance with zoning laws, which is related to land use regulations but not specifically the Planning Act. - Option F talks about guaranteeing the legality of property boundaries, which is not the main reason for including the Planning Act clause in the agreement.