Humber/Ontario Real Estate Course 4 Exam Practice

What action can Buyer Khan take if an environmental inspection reports minor contamination?

1. The agreement would automatically be null and void because contamination was found on the land.

2. The buyer has the right to waive the condition, even though contamination was discovered.

3. The seller has the right to retain the deposit, if the buyer terminates the agreement as a result of this unsatisfactory report.

4. The seller has the right to terminate the agreement, because the environmental report was not satisfactory and the condition was not fulfilled as written.

The correct answer is: The buyer has the right to waive the condition, even though contamination was discovered.

Buyer Khan can waive the condition even though minor contamination was discovered during the environmental inspection. This is the correct answer because in real estate transactions, it is common for buyers to have the right to waive certain conditions in the agreement if they choose to do so. In this case, discovering minor contamination does not necessarily mean the buyer has to automatically terminate the agreement. By choosing to waive the condition, Buyer Khan can proceed with the purchase despite the environmental issue. Option A is incorrect because minor contamination does not automatically nullify the agreement. Option C is incorrect as the seller retaining the deposit would typically depend on the terms of the agreement and the circumstances of the termination. Option D is incorrect as the seller does not have the automatic right to terminate the agreement based on the unsatisfactory environmental report; the buyer has the option to waive the condition.