Humber/Ontario Real Estate Course 2 Exam Practice

If an offer includes a condition allowing the buyer to sell their home within 120 days failing which the offer becomes null and void, what is the correct course of action?

1. Sellers have the right to terminate the agreement immediately.

2. Buyers can extend the condition period if they provide a valid reason.

3. Sellers must stop offering their property during the 120 days.

4. The agreement cannot be terminated, even if the condition is not fulfilled.

The correct answer is: Sellers must stop offering their property during the 120 days.

In this scenario, the correct course of action is option C: Sellers must stop offering their property during the 120 days. This is because when a buyer includes a condition in an offer that they must sell their home within a specified period, failing which the offer becomes null and void, the seller is obligated to hold off on further marketing or accepting other offers for the property until the condition is either satisfied or the offer terminates. This demonstrates good faith on the part of the seller and ensures that they do not engage in potentially conflicting actions by seeking alternative offers while the initial offer is still pending based on the condition set by the buyer.