Humber/Ontario Real Estate Course 4 Exam Practice

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If a seller's small subdivision has not met certain requirements of the Planning Act, which statement is NOT correct regarding the buyer's objection to the seller's title?

  1. The seller has no option but to return the buyer's deposit, as the sale is at an end.

  2. The seller may be unwilling to resolve the matter given the expense involved to do so and the sale is at an end.

  3. The seller may be unable to resolve the matter and the sale is at an end.

  4. The buyer and seller may mutually agree to terminate the agreement.

  5. The buyer can insist on immediate resolution before closing.

  6. The seller might resolve the matter if feasible within the existing budget.

The correct answer is: The seller has no option but to return the buyer's deposit, as the sale is at an end.

The correct interpretation of the scenario indicates that if a small subdivision has not fulfilled the necessary requirements of the Planning Act, it opens considerations regarding the validity of the sale and the parties' obligations. In the context of a buyer's objection to the seller's title, it is not necessarily true that the seller is required to return the deposit immediately, as this action depends on several factors, including the circumstances surrounding the objection and potential further actions. The option that suggests the seller must return the buyer's deposit implies an automatic conclusion to the transaction without considering other possibilities. In real estate transactions, particularly when dealing with title objections, various outcomes can unfold; these include negotiating the issue, extending the closing date, or addressing the matter in other ways that do not mandate an immediate refund. The other options highlight realistic scenarios that align with industry practices. For instance, mutual termination of the agreement can occur if both parties agree; a seller may choose not to resolve the issue due to cost implications; and there may be an inability to resolve the matter due to legal or other constraints. Additionally, buyers can sometimes push for resolution, and sellers may strive to address title issues if feasible within their budget. Therefore, the idea that the seller has no other recourse but to return

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