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Ontario Real Estate Licensing Exam Practice · Question

A buyer's offer for a house in Kingston includes a condition of 'satisfactory home inspection' to be fulfilled within seven business days. On the sixth day, the buyer's salesperson obtains a signed waiver of the condition from the buyer. What is the status of the agreement at this point?

When a condition precedent to the buyer's sole benefit is waived within the stipulated timeframe, the Agreement of Purchase and Sale becomes firm and binding im

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Question: A buyer's offer for a house in Kingston includes a condition of 'satisfactory home inspection' to be fulfilled within seven business days. On the sixth day, the buyer's salesperson obtains a signed waiver of the condition from the buyer. What is the status of the agreement at this point?

Answer options:

  • The agreement is null and void as the condition was not met. ✅ The agreement immediately becomes firm and binding.
  • The seller must now agree to the waiver for it to be effective.
  • The buyer still has one more day to satisfy the condition.

Correct answer: The agreement immediately becomes firm and binding.

Explanation: When a condition precedent to the buyer's sole benefit is waived within the stipulated timeframe, the Agreement of Purchase and Sale becomes firm and binding immediately upon the communication of that waiver.

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