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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