Humber/Ontario Real Estate Course 4 Exam Practice

When drafting a purchase and sale agreement, what is important about rental items in a resale home?

1. All rental terms must be disclosed in detail.

2. They must be assumed by the buyer.

3. They should not influence the buyer's decision.

4. The seller is responsible for removal.

5. They are less of a factor due to fewer items being rented.

6. They should be left to the buyer's discretion.

The correct answer is: All rental terms must be disclosed in detail.

When drafting a purchase and sale agreement, it's crucial that all rental terms are disclosed in detail. This ensures transparency and provides the buyer with a clear understanding of the obligations associated with any rented items, such as appliances, heating systems, or water heaters. Full disclosure allows the buyer to assess potential ongoing costs and their implications on the overall value of including those items in the purchase. Moreover, detailed disclosure of rental terms can prevent future disputes between the buyer and seller regarding the condition of the rented items or the responsibilities tied to them. This clarity is essential because it affects the buyer's decision-making process and helps them make an informed choice regarding the property. While other considerations such as whether the items should be assumed by the buyer or if they should influence the buyer's decision are relevant, they hinge on having a clear understanding of the terms. Therefore, careful attention to rental items within the context of the purchase agreement is vital to ensure that all parties are aware of what is included in the sale and any financial implications involved.