Sunita, a registered salesperson, is representing the seller of a detached home in Kitchener. A potential buyer, David, has expressed interest but is hesitant to sign a written offer. What must Sunita advise the seller regarding an agreement of purchase and sale?

Question: Sunita, a registered salesperson, is representing the seller of a detached home in Kitchener. A potential buyer, David, has expressed interest but is hesitant to sign a written offer. What must Sunita advise the seller regarding an agreement of purchase and sale?

Answer options: ✅ A written agreement is required to create a legally enforceable contract for the sale of land in Ontario.

• A verbal agreement followed by a handshake is legally binding for real estate transactions.
• The buyer can make a verbal offer, and the seller can accept verbally, after which Sunita will draft the paperwork.
• A written agreement is only necessary if the transaction involves a mortgage.

Correct answer: A written agreement is required to create a legally enforceable contract for the sale of land in Ontario.

Explanation: The Statute of Frauds stipulates that a contract for the sale of land, or an interest in land, must be in writing and signed by the parties to be charged to be legally enforceable.