A buyer's associate, Alex, is preparing a Residential Purchase Contract for his client, Emily, who is offering $550,000 for a single-family home in Cochrane. Emily wants to include a condition that the purchase is subject to a satisfactory home inspection by a licensed inspector of her choice within 10 business days. How should Alex incorporate this into the AREA Residential Purchase Contract to best protect Emily's interests?

Question: A buyer's associate, Alex, is preparing a Residential Purchase Contract for his client, Emily, who is offering $550,000 for a single-family home in Cochrane. Emily wants to include a condition that the purchase is subject to a satisfactory home inspection by a licensed inspector of her choice within 10 business days. How should Alex incorporate this into the AREA Residential Purchase Contract to best protect Emily's interests?

Answer options:

• He should verbally communicate this condition to the seller's agent and get a verbal agreement.
• He should write 'Home inspection satisfactory to buyer' in the 'Additional Terms' section without a timeframe. ✅ He should select the appropriate 'Condition' box in the contract, specify the home inspection, and clearly state the 10-business-day timeframe for removal of the condition.
• He should recommend Emily waive a home inspection to make her offer more attractive to the seller.

Correct answer: He should select the appropriate 'Condition' box in the contract, specify the home inspection, and clearly state the 10-business-day timeframe for removal of the condition.

Explanation: The AREA Residential Purchase Contract includes specific sections for conditions. To adequately protect the buyer, conditions must be clearly stated in writing, defining the event, the party to be satisfied, and a specific timeframe for fulfillment or waiver, as per standard real estate practice and contract law.