Humber/Ontario Real Estate Course 4 Exam Practice

Regarding amendments to an accepted agreement of purchase and sale, which statement is correct?

1. The amendment form can be used to revise the completion date and correct other details like a buyer's name.

2. The new amendment does not need signatures from all parties of the original agreement.

3. The signatures of all parties to the original agreement must be on the amendment.

4. The new wording must be added without including the original wording to be deleted.

5. The amendment form should not reference the original agreement of purchase and sale.

6. The amendment must be completed within the same business day to be valid.

The correct answer is: The signatures of all parties to the original agreement must be on the amendment.

The correct statement emphasizes the importance of having all parties involved in the original agreement sign the amendment. This requirement is crucial because it ensures that any changes made to the agreement are mutually agreed upon by all parties. Having all signatures serves as verification that everyone is aware of and consents to the modifications, thereby maintaining the integrity and legal binding nature of the original agreement. If the amendment were to be executed without the necessary signatures from all parties, it could lead to disputes regarding the validity of the changes. This signature requirement is not only a best practice but also provides legal protection, ensuring that no party can later claim they were unaware of the amendments or did not agree to them. The other statements fall short in this context; for instance, an amendment may alter various details but must always have full consent to be enforceable. Similarly, the requirement for signatures, reference to the original agreement, and the inclusion of original wording are all procedures set in place to protect the interests of those involved in the transaction.