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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Which of the following is true about the purchase price stated in the agreement of purchase and sale?

It includes the deposit.
It cannot be based on total acreage (or hectares) in the case of a farm.
It must be based on total working acreage (or hectares) in the case of a farm.
It excludes the deposit.
It must reflect only the market value of the property.
It should be listed before any property inspections occur.

The correct answer is: It includes the deposit.

The correct answer is A. The purchase price stated in the agreement of purchase and sale includes the deposit. This amount is the total of both the deposit and the balance of the purchase price that the buyer agrees to pay for the property. Options B, C, E, and F are incorrect because they do not accurately reflect the nature of the purchase price stated in the agreement of purchase and sale. Option B specifies that the purchase price cannot be based on total acreage in the case of a farm, which is not true. Option C states that the purchase price must be based on total working acreage in the case of a farm, which is not a requirement. Option E specifies that the purchase price must reflect only the market value of the property, which is an oversimplification. Option F suggests that the purchase price should be listed before any property inspections occur, which is not a standard practice.