Humber/Ontario Real Estate Course 1 Exam Practice

Which of the following is NOT correct regarding an agreement for the conveyance of real estate?

1. The agreement can be either verbal or in writing.

2. The agreement can be typed or legibly handwritten.

3. There is no standard agreement of purchase and sale used throughout Ontario.

4. The agreement to convey real estate must be in writing.

5. The agreement must include a signature from both parties.

6. The consideration must be clearly stated.

The correct answer is: The agreement can be either verbal or in writing.

The statement indicating that the agreement can be either verbal or in writing is not correct. In Ontario, a real estate agreement for the conveyance of property must be in writing to be enforceable. This requirement is part of the Statute of Frauds, which aims to prevent fraudulent claims. Therefore, while verbal agreements may be made, they do not provide the legal standing necessary for the conveyance of real estate. The other statements highlight important aspects of what makes a valid agreement. The requirement for an agreement to be in writing ensures clarity and enforceability in transactions. Additionally, agreements can be typed or legibly handwritten, accommodating different preferences and practices in real estate documentation. The lack of a standard agreement of purchase and sale across Ontario recognizes the diversity in real estate transactions, where various forms may be used. Both parties' signatures ensure mutual consent, while clearly stating the consideration solidifies the terms of the agreement. Each of these components plays a critical role in the validity and functionality of an agreement for the conveyance of real estate.