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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When is a condition precedent typically included in a real estate purchase agreement?

  1. When the buyer needs to secure financing

  2. When the buyer has an existing mortgage

  3. When the seller consents to post-closing assessment

  4. When the buyer exercises an option to purchase

  5. When both parties seek to avoid mortgage insurance

  6. When the property is located outside zoning restrictions

The correct answer is: When the buyer needs to secure financing

A condition precedent is typically included in a real estate purchase agreement when the buyer needs to secure financing. This condition allows the buyer to make the purchase contingent upon being able to obtain a mortgage loan. By having this condition in place, the buyer can protect themselves in case they are not able to secure the necessary financing to complete the purchase. Options B, C, D, E, and F do not typically involve the need to secure financing, which is why they are not correct in this context.

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