Humber/Ontario Real Estate Course 3 Exam Practice

Which of the following documents must a real estate professional present to their client when an offer is received?

1. The Listing Agreement

2. The Agreement of Purchase and Sale

3. The Property Disclosure Statement

4. The Comparative Market Analysis

The correct answer is: The Agreement of Purchase and Sale

When a real estate professional receives an offer on a property, the primary document that must be presented to their client is the Agreement of Purchase and Sale. This document outlines the terms of the offer, including the purchase price, conditions, and any other significant details that the buyer is proposing. It is crucial for the client (the seller in most cases) to review this agreement in order to make an informed decision about whether to accept, reject, or counter the offer. The other documents, while important in the overall context of a real estate transaction, do not need to be presented specifically when a new offer is received. The Listing Agreement relates to the arrangement between the seller and the real estate professional, the Property Disclosure Statement provides additional details about the property's condition, and the Comparative Market Analysis helps in understanding the property's value in relation to the market but does not serve as a direct response to the specific offer being made. Therefore, the Agreement of Purchase and Sale is the critical document that must be presented at this stage of the transaction.