Ontario Real Estate Salesperson Program (Humber College): Course 2, M 16-20 258 Combined Terms (Module Quizzes Included) with Complete Solutions(GRADED A+)

The Salesperson can obtain information and verify using the following sources: - listing data sheet, including by contacting the listing Salesperson - various source documents, such as a deed, survey - seller's disclosure document regarding property conditions - seller's pre-listing home inspection, if available - online information available from the municipality - ANSWER-When preparing the "offer plan" before drafting the offer, how information can be obtained and verified by the Salesperson? If there is a cooperating brokerage involved, a "Commission Trust Agreement" is required and Salesperson from each brokerage will sign the respective portion of the "Commission Trust Agreement". This is done after the offer is accepted. - ANSWER-When does a "Commission Trust Agreement" is required? Yes! A Salesperson must complete a confirmation of cooperation and representation for every offer based on two scenarios, such as single representation or multiple representation. - ANSWER-Is it mandatory for a Salesperson to complete a confirmation of cooperation and representation for every offer? The seller will not guarantee that any intended future use will be lawful. For example, if the agreement states that the property is a single family home with a finished basement, there is no guarantee that this basement apartment is a legal one. - ANSWER-"Future Use" clause states that the seller and buyer agree that there is no representation or warranty of any kind that the future intended use of the property by buyer is or will be lawful except as may be specifically provided for in this agreement. What is the implication of this statement? Consumer Reports clause signifies that the buyer may be subject to credit and personal information check. - ANSWER-What does "Consumer Reports" clause signifies? "Time and Date" clause stipulates that any time and date stated in the agreement are based on the time where the property is located. - ANSWER-What the "Time and Date" clause in the agreement of purchase and sale stipulates? The Salespersons from the listing and cooperating brokerage will sign the "Commission Trust Agreement". This agreement assures the cooperating brokerage that the listing brokerage has a commission trust account and their commission money will be deposited and protected in that account. - ANSWER-Who will sign the "Commission Trust Agreement"? True! This date is the date that the deal closes and the buyer takes the possession. - ANSWER-True or False? An "offer plan" includes completion date. True! At minimum include a middle initial of the seller to ensure that this is the correct person. - ANSWER-True or False? The offer plan includes full legal name of the seller. It is mandatory to sign the acknowledgment by both buyers. - ANSWER-When two buyers are buying a property, time has come to sign the acknowledgment. Is it possible to sign the acknowledgment by one of them because the other buyer is not available for signing the acknowledgment? Yes the offer can still be submitted, however, the lawyer information must be provided to the Salesperson as soon as possible. - ANSWER-If either the seller or the buyer does not have their lawyer's information at the time of signing the acknowledgment, can the offer still be submitted? The acknowledgment portion of the Agreement of Purchase and Sale will be completed and signed only when the seller and the buyer have received signed, accepted copies of the agreement. - ANSWER-When the acknowledgment portion of the agreement is completed? Absolutely True! When a buyer makes one or more supplemental deposits, a Salesperson need to consider the impact on the balance due on closing. - ANSWER-True or False? The initial deposit received from the buyer is identified on the first page of an agreement of purchase and sale. Any subsequent deposit provisions are identified on a Schedule A. True! Supplemental deposits are common in real estate transactions where the buyer has investments that are not readily convertible to cash on the signing date but available at a later date to add to the deposits. - ANSWER-True or False? To pay an additional deposit by the buyer at a specified time after acceptance of the offer, a Salesperson will need to add a clause detailing the amount of the deposit, who it will be paid to, how and when it will be paid. True! A supplemental deposit may be paid upon notification or removal of a condition inserted in the offer. For example, an initial deposit was submitted at the time of offer and will follow with a supplemental deposit once the sale is firm and the conditions are removed. In this scenario, the Salesperson is required to add a clause to the Schedule detailing the amount of the deposit, how it will be paid and the condition. - ANSWER-True or False? The buyer may be required to pay additional or supplemental deposits when a condition is fulfilled or waived. Interest on a deposit is separate from the transaction and does not affect the balance due on closing. Interest is typically paid to the buyer under the terms of the clause included in the agreement. The clause instructs the deposit holder, which is typically the listing brokerage about how to handle the deposit, who to pay the interest after the completion date. - ANSWER-How the brokerage deal with interest on buyer's deposit? Yes, if parties to the agreement agree. For example, when parties agree to holding the deposit in an interest bearing investment such as Guaranteed Investment Certificate (GIC), the brokerage would write a cheque to the financial institution allowing withdrawal from trust account and buy the GIC. On the day before closing, the brokerage would collapse the GIC and put the fund back into the trust account pending closing. The accrued interest would be paid to the buyer on (or shortly after) closing. - ANSWER-Can a buyer request the deposit to be invested in interest earning investment funds? An acknowledgement or agreement clause sometimes necessary to obtain admission or affirmation that something may exist in order to remove misunderstanding. - ANSWER-What is the necessity for adding the acknowledgment or agreement clause in the Agreement of Purchase and Sale? - no warranty on chattels, for example: buyer acknowledges that there are no express or implied warranties on chattels included in the agreement. - water access: example, the property is only accessible by water. - discharge of buyer's existing mortgage, seller to pay early discharge fees or penalty. - growth or manufacture of illegal substance. - Kitec plumbing - underground tank, removed by seller - heritage act designation - ANSWER-What are some examples of "Acknowledgment" clause? "All matters in an agreement are merged or extinguished on closing" means the seller is responsible for the condition of the property until the date of closing and the buyer would be responsible as of the day of closing. However, the buyer could want the seller to represent (state) and warrant (guarantee) on certain matters, such as garage door be repaired and be in good condition on closing. As such, representation or warranties clause added stating that a particular warranty will survive and will not merge on closing. - ANSWER-What does it mean, " all matters in an agreement are merged or extinguished on closing!" - chattels and fixtures, typically warrant "in good condition" up-to day of closing. - swimming pool, bylaw compliance - seller's general representation - specific time period warranty (up-to furnace manufacturer's warranty etc) - ANSWER-What are some examples of warranties that the seller provides in the Agreement of Purchase and Sale? Ontario Real Estate Salesperson Program (Humber College): Course 2, M 16-20 258 Combined Terms (Module Quizzes Included) with Complete Solutions(GRADED A+)