Humber/Ontario Real Estate Course 2 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 2 Exam with our comprehensive quiz that covers essential concepts and topics. Enhance your understanding with multiple choice questions designed to test your knowledge and boost your confidence before the exam.

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What must be included in a representation warranty clause to avoid misleading implications?

A statement of terms for future property reassessment.
Language indicating the warranty survives closing.
A disclaimer for pre-existing conditions.
An expiry date for the warranty period.

The correct answer is: An expiry date for the warranty period.

An expiry date for the warranty period must be included in a representation warranty clause to avoid misleading implications. This is because without an expiry date, the warranty could potentially extend indefinitely and create false expectations for the buyer. Options A, B, and C are incorrect because they do not directly address the issue of avoiding misleading implications. A statement of terms for future property reassessment (option A) may be important in its own context but does not pertain to the given question. Language indicating the warranty survives closing (option B) may be useful for clarifying that the warranty remains in effect after the closing of a sale, but it does not directly address the issue of misleading implications. A disclaimer for pre-existing conditions (option C) may be important for protecting the seller from liability for issues that arose before the sale, but it also does not directly address the given question about misleading implications.