Humber/Ontario Real Estate Course 2 Exam Practice

How should you categorize an acknowledgment clause in a purchase agreement?

1. Confirms there are no warranties on included chattels.

2. Is generally used for property-related facts.

3. Is vital when matters might be misinterpreted by parties.

4. Used only for buyer's acknowledgments.

The correct answer is: Is vital when matters might be misinterpreted by parties.

An acknowledgment clause in a purchase agreement is categorized as vital when matters might be misinterpreted by parties because it serves to clarify and confirm that both parties understand and agree to specific terms or conditions outlined in the agreement. This clause helps prevent misunderstandings or disputes by ensuring that all parties acknowledge certain key aspects of the transaction. It is crucial for the clarity and mutual understanding between the parties involved in the real estate transaction.