Humber/Ontario Real Estate Course 3 Exam Practice

Which document would outline the specific terms agreed upon for the sale of a property?

1. Listing agreement.

2. Agreement of Purchase and Sale.

3. Title search report.

4. Deed of conveyance.

5. Mortgage contract.

6. Inspection report.

The correct answer is: Agreement of Purchase and Sale.

The Agreement of Purchase and Sale is the key document that details the specific terms agreed upon for the sale of a property. This document outlines critical elements such as the purchase price, deposit, closing date, and any conditions that must be satisfied before the sale is finalized. Both the buyer and seller sign this agreement, making it a legally binding contract that ensures both parties are clear on their obligations and rights throughout the transaction process. The other documents mentioned serve different purposes. A listing agreement is used between a seller and a real estate agent to officially enlist the agent’s services in selling the property. A title search report pertains to the ownership history and any encumbrances on the property but does not detail sale terms. The deed of conveyance is the legal document that transfers ownership, executed after the agreement is reached. A mortgage contract outlines the terms regarding financing but does not specify the sale terms themselves. An inspection report assesses the condition of the property but is unrelated to the terms of sale.