Humber/Ontario Real Estate Course 1 Exam Practice

Which of the following is NOT stipulated by the Vendors and Purchasers Act in an agreement of purchase and sale?

1. Buyer has a 10-day period to secure suitable financing

2. Seller has a 30-day period to clear any title objections

3. Taxes must be adjusted as of the closing date

4. Buyer has the right to search title and file objections within a set time

5. Seller must ensure the property is free from liens

6. Buyer can request an extension for title objections

The correct answer is: Buyer has a 10-day period to secure suitable financing

The Vendors and Purchasers Act in an agreement of purchase and sale does not stipulate that the buyer has a 10-day period to secure suitable financing. While it is common practice for buyers to have a financing condition in their offer to purchase, the specific time period for securing financing is not typically dictated by legislation. The other options provided are all generally stipulated by the Vendors and Purchasers Act or are common practices in real estate transactions. For example, the seller typically has a 30-day period to clear any title objections, taxes must be adjusted as of the closing date, the buyer has the right to search title and file objections within a set time frame, the seller must ensure the property is free from liens, and the buyer can request an extension for title objections if needed.