Ontario Real Estate Licensing Exam Practice · Question
A buyer includes a condition for a satisfactory home inspection within five business days. The inspection reveals a significant structural issue, and the buyer decides not to proceed. What is the most appropriate action for the buyer?
If a buyer wishes to terminate an agreement due to an unsatisfactory condition, they must formally notify the seller in writing that the condition has not been
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Question: A buyer includes a condition for a satisfactory home inspection within five business days. The inspection reveals a significant structural issue, and the buyer decides not to proceed. What is the most appropriate action for the buyer?
Answer options: ✅ Deliver a notice to the seller, in writing, stating the condition is not satisfied and declining to waive it.
- Verbally inform the seller's salesperson that they are backing out due to the inspection.
- Demand a price reduction from the seller based on the inspection report.
- Attempt to negotiate repairs with the seller before making a final decision.
Correct answer: Deliver a notice to the seller, in writing, stating the condition is not satisfied and declining to waive it.
Explanation: If a buyer wishes to terminate an agreement due to an unsatisfactory condition, they must formally notify the seller in writing that the condition has not been fulfilled and will not be waived, usually within the specified timeframe. This formally voids the agreement as per the terms of the condition.
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