Humber/Ontario Real Estate Course 3 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 3 Exam with our practice quizzes. Study using multiple-choice questions complete with hints and explanations. Ace your exam with confidence!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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For what purpose is a property inspection clause typically added in a purchase and sale agreement?

To mitigate risks for the seller
To be a pre-printed part of the agreement
To be arranged by the lender
To be arranged by the buyer
To ensure repairs are completed
To be required in all market conditions

The correct answer is: To be arranged by the buyer

A property inspection clause is typically added in a purchase and sale agreement in order for the buyer to have the opportunity to conduct an inspection of the property before finalizing the sale. This allows the buyer to uncover any potential issues with the property and negotiate any necessary repairs or adjustments to the purchase price. Options B, C, and F are incorrect as they do not accurately describe the purpose of a property inspection clause. Option A is incorrect as it is the responsibility of the buyer, not the seller, to mitigate risks by conducting an inspection. Option E is also incorrect as the purpose of the property inspection clause is to give the buyer the opportunity to request repairs, not to ensure they are completed. Therefore, option D is the most appropriate choice as it accurately describes the purpose of the clause.