OREA Contract Law for Real Estate 2

Question 1

In Ontario real estate, what is a 'condition precedent' in an Agreement of Purchase and Sale?

Accepted Answer

A condition that must be satisfied before the contract becomes binding, such as obtaining financing or a satisfactory home inspection

Answer

A condition that must be fulfilled after closing

Answer

A mandatory clause required by RECO in all contracts

Answer

A condition that only applies to commercial transactions

Question 2

What is a 'waiver' in the context of conditions in an Ontario Agreement of Purchase and Sale?

Accepted Answer

The voluntary relinquishment of a condition by the party for whose benefit the condition was inserted

Answer

A document that releases the real estate agent from liability

Answer

A mandatory government form

Answer

The automatic removal of all conditions at closing

Question 3

Under Ontario law, what remedies are available to a buyer if the seller breaches an Agreement of Purchase and Sale?

Accepted Answer

Specific performance, monetary damages, rescission, or a combination depending on the circumstances

Answer

Only monetary damages

Answer

The buyer can only cancel the contract

Answer

No remedies are available — the buyer must find another property

Question 4

In Ontario, what is an 'amendment' to an Agreement of Purchase and Sale?

Accepted Answer

A written change to the terms of an existing agreement, agreed to by all parties

Answer

A new contract that replaces the original

Answer

A verbal modification that does not need to be in writing

Answer

A unilateral change made by the buyer

Question 5

What is 'tender' in Ontario real estate contract law?

Accepted Answer

The unconditional offer to perform one's obligations under the contract, typically by being ready, willing, and able to close on the closing date

Answer

A type of bidding process for commercial properties

Answer

A request for proposals from contractors

Answer

A deposit paid at the time of offer

Question 6

In Ontario, what is the difference between 'void' and 'voidable' contracts in real estate?

Accepted Answer

A void contract has no legal effect from the beginning; a voidable contract is valid until one party chooses to set it aside

Answer

There is no difference

Answer

A voidable contract is more serious than a void contract

Answer

Both types require court approval to enforce