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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If a buyer's legal representative finds a lien during the title search, what action should be taken?

Pay the lien immediately and seek reimbursement later.
Inform the seller’s lawyer about the title issue during the requisition timeframe.
Ignore the lien since it is not a title problem.
Note the lien situation and handle it on the closing date.

The correct answer is: Inform the seller’s lawyer about the title issue during the requisition timeframe.

The most appropriate action when a buyer's legal representative discovers a lien during the title search is to inform the seller’s lawyer about the title issue during the requisition timeframe. This is crucial because the presence of a lien raises concerns that may affect the transaction's legality and the buyer's ownership rights. Addressing this issue promptly allows the seller to take necessary actions to resolve the lien, such as paying it off or negotiating its removal before the sale is finalized. The requisition timeframe is an essential period in which the buyer can raise concerns regarding the title, and it's important to act within this window to ensure that the buyer is protected from potential legal complications that could arise from undisclosed liens after the transaction closes. The other options do not adequately address the legal and procedural requirements associated with title issues. Paying the lien immediately and seeking reimbursement may not be advisable without first confirming its impact on the transaction. Ignoring the lien can lead to significant legal problems, as liens pose real threats to ownership and can lead to complications in the future. Finally, noting the lien situation and handling it on the closing date fails to address the urgency of resolving the issue before the transaction is finalized.