HUMBER REAL ESTATE EXAMPREP TESTED
QUESTIONS WITH ACCURATE RESPONSES
PREMIUM LEARNING PACKAGE
●● True or false? An oral contract for the acquisition or disposition of
any interest in the land is enforceable.
Answer: False. Any contract in real estate is required to be in writing.
●● When drafting a contract, what does The Statute of Frauds require?
Answer: - Must be in writing to be enforceable by law (the only
exception is when a contract is verbal but parties begin to complete the
contract, then it could be enforceable)
●● What are the contract requirements of The Vendors and Purchasers
Act?
Answer: - The seller is not bound to produce any abstract of title, deed,
copy of a deed or other evidence of title except as are in the seller's
possession or control
- The buyer shall search the title at the buyer's own expense and shall
make any objections in writing within 30 days from making of the
contract
- The seller has 30 days in which to remove any objection made to the
title. If the seller is unable or unwilling and the buyer doesn't waive the
,request, the seller may cancel the contract and return any deposit made,
but is not otherwise liable to the buyer
- Taxes, local improvements, insurance premiums, rent and interest shall
be adjusted as at the date of closing
- The conveyance (legal process of transferring of ownership from one
party to another) shall be prepared by the seller and the mortgage, if any,
by the buyer; the buyer pays for the registration of the transfer/deed and
the seller pays for the discharge of the mortgage
- The buyer is entitled to possession or the receipt of rent and profits
upon the date of closing the transaction
●● What are the contract requirements of The Real Estate and Business
Brokers Act?
Answer: - All agreements are reduced to writing at the earliest
opportunity, signed by the brokerage and submitted to the seller or buyer
for signature
- That registrants use their best efforts to ensure that all parties to an
agreement receive a copy as soon as possible and ensure that deposits
and other related documents (i.e. notice removing conditions) be
delivered in accordance with the agreement of purchase and sale
●● What is 'Evidence of a Contract'?
Answer: Since a contract is the legal relationship created between the
parties, the contract document is the written record and therefore a
reflection of the mutual commitment agreed to by the contracting
, parties. A document, such as an Agreement of Purchase and Sale, is
evidence of a contract.
●● Define the 'Parol Evidence Rule'
Answer: In the determination of contractual disputes, this rule provides
that oral evidence is inadmissible in court to vary or contradict the terms
of a written contract, except in a case of fraud or mistake.
●● What is 'Privity of Contract'?
Answer: The general rule that only parties to a contract can enforce it or
be bound by it.
(i.e. A salesperson signs an agreement as a witness, but because the
contract is between the buyer and seller, only they are privy to the
contract.)
●● What are the essential elements of a contract?
Answer: - Genuine intention (Both parties must consent to the terms of
the contract)
- Lawful object (The contractual arrangement must be lawful)
- Definite & clear (The subject and terms of the agreement must be
stated clearly)
- Consideration (Each party must receive something of value)
- Capacity of the parties (The parties entering into a contract must be
legally competent & of sound mind and legal after of majority to make
the contract)
QUESTIONS WITH ACCURATE RESPONSES
PREMIUM LEARNING PACKAGE
●● True or false? An oral contract for the acquisition or disposition of
any interest in the land is enforceable.
Answer: False. Any contract in real estate is required to be in writing.
●● When drafting a contract, what does The Statute of Frauds require?
Answer: - Must be in writing to be enforceable by law (the only
exception is when a contract is verbal but parties begin to complete the
contract, then it could be enforceable)
●● What are the contract requirements of The Vendors and Purchasers
Act?
Answer: - The seller is not bound to produce any abstract of title, deed,
copy of a deed or other evidence of title except as are in the seller's
possession or control
- The buyer shall search the title at the buyer's own expense and shall
make any objections in writing within 30 days from making of the
contract
- The seller has 30 days in which to remove any objection made to the
title. If the seller is unable or unwilling and the buyer doesn't waive the
,request, the seller may cancel the contract and return any deposit made,
but is not otherwise liable to the buyer
- Taxes, local improvements, insurance premiums, rent and interest shall
be adjusted as at the date of closing
- The conveyance (legal process of transferring of ownership from one
party to another) shall be prepared by the seller and the mortgage, if any,
by the buyer; the buyer pays for the registration of the transfer/deed and
the seller pays for the discharge of the mortgage
- The buyer is entitled to possession or the receipt of rent and profits
upon the date of closing the transaction
●● What are the contract requirements of The Real Estate and Business
Brokers Act?
Answer: - All agreements are reduced to writing at the earliest
opportunity, signed by the brokerage and submitted to the seller or buyer
for signature
- That registrants use their best efforts to ensure that all parties to an
agreement receive a copy as soon as possible and ensure that deposits
and other related documents (i.e. notice removing conditions) be
delivered in accordance with the agreement of purchase and sale
●● What is 'Evidence of a Contract'?
Answer: Since a contract is the legal relationship created between the
parties, the contract document is the written record and therefore a
reflection of the mutual commitment agreed to by the contracting
, parties. A document, such as an Agreement of Purchase and Sale, is
evidence of a contract.
●● Define the 'Parol Evidence Rule'
Answer: In the determination of contractual disputes, this rule provides
that oral evidence is inadmissible in court to vary or contradict the terms
of a written contract, except in a case of fraud or mistake.
●● What is 'Privity of Contract'?
Answer: The general rule that only parties to a contract can enforce it or
be bound by it.
(i.e. A salesperson signs an agreement as a witness, but because the
contract is between the buyer and seller, only they are privy to the
contract.)
●● What are the essential elements of a contract?
Answer: - Genuine intention (Both parties must consent to the terms of
the contract)
- Lawful object (The contractual arrangement must be lawful)
- Definite & clear (The subject and terms of the agreement must be
stated clearly)
- Consideration (Each party must receive something of value)
- Capacity of the parties (The parties entering into a contract must be
legally competent & of sound mind and legal after of majority to make
the contract)
