Humber/Ontario Real Estate Course 4 Exam Practice

What happens if a buyer includes conditions for a mortgage, home inspection, and well water test in an offer?

1. All three should have different expiry dates

2. A single condition means waiving it removes all three

3. Consider a single stacked condition with an escape clause

4. Each condition should be waived independently

5. Arrange separate expiry dates for each condition

6. Include a financing clause for security

The correct answer is: A single condition means waiving it removes all three

When a buyer includes conditions for a mortgage, home inspection, and well water test in an offer, it's essential to understand how those conditions are treated in the context of the offer. The correct answer reflects a scenario where a single condition encapsulates multiple elements. In many cases, buyers may choose to present their conditions in a stacked format, meaning that they may bundle these conditions together into one overarching condition. This approach simplifies the process; however, it can also lead to the understanding that if the buyer waives this single condition, it effectively means they are waiving all three underlying conditions at once. By having a single condition, the buyer demonstrates that the fulfillment of any of these requirements is interconnected—and the removal of the condition signals that they are ready to proceed without concern for any of those individual checks. This can streamline negotiations and decision-making, as stakeholders recognize that a collective decision has been made regarding multiple aspects of the property purchase. On the other hand, treating each condition as separate can complicate the negotiation process, as it may lead to a scenario where the buyer concludes a mortgage condition successfully yet may still need to address an issue that arose in the home inspection or well water test. This interconnected approach encourages clarity and decisive action in the transaction