Humber/Ontario Real Estate Course 3 Exam Practice

If a buyer's lawyer uncovers unpaid taxes due to a special assessment, how is the seller’s promise to pay described?

1. An informal agreement set by the lawyer

2. Assumption of unpaid taxes by the buyer

3. An effort to meet the terms of the contract

4. A personal commitment by the lawyer

5. An undertaking involving the assurance of the client

6. A client promise documented in an addendum

The correct answer is: A personal commitment by the lawyer

The concept of a seller's promise to pay for unpaid taxes uncovered during a transaction often revolves around the formalities and obligations outlined in the purchase agreement. The correct choice highlights that the arrangement or promise concerning the payment for the taxes is essentially a commitment made within the framework of the contractual obligations of the seller. Such a promise serves to ensure that the buyer's interest is protected and that any outstanding obligations related to the property are addressed prior to the completion of the sale. The seller's promise reflects a mutual understanding between both parties and emphasizes the legal responsibilities that come with transferring property ownership. This aligns well with the formal aspects of real estate transactions as recorded in legal documents. Other options, while they touch upon aspects of legal commitments and agreements, do not explicitly capture the seller's direct obligation in relation to the unpaid taxes. This choice specifically indicates that it is a commitment made by the seller, reinforcing the seriousness and binding nature of the responsibility that comes with the property sale.