Humber/Ontario Real Estate Course 3 Exam Practice

When can the owner draft an agreement of purchase and sale for a lot not within a subdivision plan?

1. If the potential buyer agrees to all terms

2. Once the lot is created regardless of planning consent

3. If the lot is smaller than 5 acres

4. After obtaining planning consent

5. As soon as the land is surveyed

6. Once the agreement is notarized

The correct answer is: After obtaining planning consent

The owner can draft an agreement of purchase and sale for a lot not within a subdivision plan after obtaining planning consent because this ensures that the lot meets all zoning and municipal regulations necessary for its development and sale. Planning consent is crucial for determining whether the land can be used as intended and whether it complies with local bylaws and land use designations. Without this consent, the transaction may not be legally valid, and there could be significant consequences for both the seller and the buyer, including compliance issues or a lack of approval for intended uses. This requirement underlines the importance of following local planning laws to protect all parties involved in the transaction. The other options do not address the legal necessity of having planning consent, which is essential for a smooth and lawful property transaction. For example, buyer agreement on terms or the size of the lot does not override the need for planning compliance. Surveying the land or notarizing an agreement does not equate to having the legal approvals in place for proceeding with the sale.