Humber/Ontario Real Estate Course 3 Exam Practice

In what scenario should a condition precedent include a waiver provision?

1. When conditions are interconnected

2. When conditions must be met independently

3. When drafting mortgage conditions

4. When conditions are dated separately

5. When working with a condition subsequent

6. When buyer and seller agree on complex terms

The correct answer is: When conditions are interconnected

A condition precedent should include a waiver provision when conditions are interconnected because in such a scenario, the waiver provision allows parties to waive certain conditions if they are all dependent on each other. This helps in situations where meeting one condition is contingent upon the fulfillment of another condition, ensuring that the process can move forward smoothly if necessary conditions cannot be met independently. Options B, C, D, E, and F are not directly related to the necessity of including a waiver provision when conditions are interconnected.