A real estate licensee is preparing a Contract of Purchase and Sale (CPS) for a buyer client. The buyer is concerned about the condition of the furnace and wants to include a clause for inspection. What is the most appropriate wording for such a subject clause?

Question: A real estate licensee is preparing a Contract of Purchase and Sale (CPS) for a buyer client. The buyer is concerned about the condition of the furnace and wants to include a clause for inspection. What is the most appropriate wording for such a subject clause?

Answer options:

• 'Subject to buyer being satisfied with the furnace inspection.' ✅ 'Subject to buyer obtaining a satisfactory furnace inspection report by 5:00 PM on [Date]. This condition is for the sole benefit of the buyer.'
• 'Furnace to be inspected by seller's chosen professional prior to completion.'
• 'Seller warrants furnace is in good working order at possession.'

Correct answer: 'Subject to buyer obtaining a satisfactory furnace inspection report by 5:00 PM on [Date]. This condition is for the sole benefit of the buyer.'

Explanation: A well-drafted subject clause should specify the party for whose benefit it exists, the specific action required (obtaining a report), the standard (satisfactory to the buyer), and a clear deadline. This is crucial for clarity and enforceability in a CPS.