A buyer submits an offer on a residential property that includes a condition for a satisfactory home inspection within five business days. On the fourth day, the buyer discovers significant structural issues and decides they no longer wish to proceed with the purchase. What is the most appropriate action for the buyer to take to validly terminate the agreement?

Question: A buyer submits an offer on a residential property that includes a condition for a satisfactory home inspection within five business days. On the fourth day, the buyer discovers significant structural issues and decides they no longer wish to proceed with the purchase. What is the most appropriate action for the buyer to take to validly terminate the agreement?

Answer options:

• Deliver a notice of fulfillment for the home inspection condition, then immediately provide a separate notice of termination.
• Allow the five business days to expire without fulfilling or waiving the condition, as this will automatically terminate the agreement. ✅ Deliver a notice of non-fulfillment or non-satisfaction of the condition to the seller within the stipulated timeframe.
• Instruct their real estate agent to inform the seller verbally that the condition will not be met, thus terminating the agreement.

Correct answer: Deliver a notice of non-fulfillment or non-satisfaction of the condition to the seller within the stipulated timeframe.

Explanation: If a buyer is not satisfied with a condition, they must provide a notice of non-fulfillment or non-satisfaction to the seller by the condition's deadline to validly terminate the Agreement of Purchase and Sale, as per standard real estate practices in Ontario. Failing to do so or attempting to fulfill when not satisfied could lead to a binding agreement.