Humber/Ontario Real Estate Course 2 Exam Practice

If an offer states: "The Buyer may terminate this agreement through written notice delivered to the Seller personally or in accordance with any other notice provisions in the Agreement of Purchase and Sale or any Schedule by...," which of the following is correct?

1. The clause is a condition precedent.

2. The clause must contain a waiver provision.

3. The clause is a condition subsequent.

4. The clause can only be used with mortgage conditions.

The correct answer is: The clause is a condition subsequent.

The correct answer is C. The clause is a condition subsequent. In this scenario, the clause allows the Buyer to terminate the agreement after it has been entered into, which aligns with the definition of a condition subsequent. Option A is not correct because a condition precedent would refer to a condition that must be fulfilled before the agreement becomes binding, which is not the case in the scenario provided. Option B is also not correct since a waiver provision is not explicitly mentioned or required in the scenario, making it unrelated to the clause provided in the question. Option D is not the correct answer because the clause mentioned does not specifically relate to mortgage conditions but rather to the Buyer's ability to terminate the agreement through written notice.