Humber/Ontario Real Estate Course 4 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 4 Exam with our comprehensive practice tests. Study with flashcards and multiple-choice questions, complete with hints and detailed explanations. Achieve success on your real estate licensing journey!

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Buyer Dixon is concerned about getting fire insurance for an old home with outdated wiring. Salesperson Gallagher should:

Advise that insurance coverage will not be provided for outdated wiring.
Explain that age and wiring conditions are not issues for fire insurance.
Inform that insurance may be more difficult due to the house's age.
Deny need for any special condition in the agreement of purchase.
Advise to avoid older homes altogether.
Suggest a properly-worded condition in the agreement for investigation time.

The correct answer is: Suggest a properly-worded condition in the agreement for investigation time.

Recommending a properly-worded condition in the agreement for investigation time is a prudent approach for Buyer Dixon. This strategy enables the buyer to carry out due diligence regarding the fire insurance before finalizing the purchase. By including such a condition, Dixon can specify a time frame within which to investigate the implications of the home's outdated wiring on insurance availability and costs. This proactive step allows for a thorough assessment of any potential issues that may arise with securing insurance, enabling informed decision-making. In the context of real estate transactions, being cautious with older homes and their features is crucial. Such conditions help protect the buyer from potential financial burdens or complications that could arise after purchasing a home that may not adequately meet insurance requirements. By taking this course of action, Dixon can ensure peace of mind regarding the property's insurability.