Humber/Ontario Real Estate Course 2 Exam Practice

An acknowledgment clause in a purchase and sale agreement:

1. Is most useful when something may be misunderstood or misinterpreted by one or both of the parties to an agreement.

2. Is only used to confirm that there are no express or implied warranties on any chattels included in the purchase price.

3. Is typically used to provide a representation and warranty about an existing situation or fact involving a property.

4. Is used with acknowledgments involving the buyer, but not for acknowledgments involving the seller.

The correct answer is: Is most useful when something may be misunderstood or misinterpreted by one or both of the parties to an agreement.

An acknowledgment clause in a purchase and sale agreement is most useful when something may be misunderstood or misinterpreted by one or both of the parties to an agreement. It helps ensure that both parties are on the same page and understand the terms and conditions of the agreement clearly. By including an acknowledgment clause, any potential misunderstandings can be addressed and clarified, reducing the likelihood of disputes or disagreements down the line. It acts as a form of protection for both the buyer and the seller by making the agreement more transparent and less prone to misinterpretation or confusion.