Humber/Ontario Real Estate Course 4 Exam Practice

What document confirms a termination of agreement but also requires a mutual release for deposit return?

1. Notice of waiver

2. Notice of satisfaction

3. Notice of termination

4. Notice of condition waiver

5. Notice of repair completion

6. Notice of rescission

The correct answer is: Notice of termination

The document that confirms a termination of an agreement and requires a mutual release for deposit return is the notice of termination. This document is essential in real estate transactions as it formally indicates that both parties have agreed to cease all activities related to the contract. When parties decide to terminate an agreement, typically a mutual release is necessary to ensure that any deposits given as part of the agreement are returned to the buyer or the party who initially provided the funds. This mutual release protects both parties by clearing them of any further obligations and confirms that they have resolved the transaction without any outstanding issues or claims. The other options pertain to different aspects of real estate transactions. For instance, a notice of waiver is used when one party relinquishes a right or condition under the agreement, while a notice of satisfaction confirms that certain conditions have been fulfilled. A notice of condition waiver addresses specific contingencies without terminating the agreement and a notice of repair completion would indicate that repairs have been finalized. The notice of rescission typically refers to undoing a contract but does not specifically address the mutual release necessary for a deposit return like the notice of termination does.