Ontario Real Estate Licensing Exam Practice · Question
In Ontario, what is the primary purpose of a 'firm' Agreement of Purchase and Sale?
A 'firm' Agreement of Purchase and Sale means that all conditions have either been met, waived, or were never included, making the agreement legally binding on
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Question: In Ontario, what is the primary purpose of a 'firm' Agreement of Purchase and Sale?
Answer options: ✅ It is a legally binding contract with no conditions to be fulfilled, indicating a definite sale.
- It is an offer that includes several conditions that must be met before closing.
- It allows the buyer to withdraw from the contract without penalty within a cooling-off period.
- It signifies that only one offer has been made on the property.
Correct answer: It is a legally binding contract with no conditions to be fulfilled, indicating a definite sale.
Explanation: A 'firm' Agreement of Purchase and Sale means that all conditions have either been met, waived, or were never included, making the agreement legally binding on both parties without any outstanding contingencies. This indicates a definite commitment to proceed with the transaction.
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