OREA Residential Transactions

Question 1

In a typical Ontario residential real estate transaction, what is the correct order of steps?

Accepted Answer

Listing, showing, offer and negotiation, acceptance, conditions fulfilled, closing

Answer

Closing, offer, negotiation, inspection

Answer

Inspection, offer, listing, closing

Answer

Financing, listing, closing, offer

Question 2

What is the standard form 'Agreement of Purchase and Sale' used in Ontario residential transactions?

Accepted Answer

The OREA Form 100, a standardized form used by real estate registrants for residential resale transactions

Answer

A government-issued contract form

Answer

A form created by each individual brokerage

Answer

A form issued by the Canadian Real Estate Association

Question 3

In Ontario, what is the purpose of a 'home inspection' in a residential transaction?

Accepted Answer

To assess the physical condition of the property, including its structural, mechanical, and electrical systems, and identify potential defects

Answer

To determine the property's market value

Answer

To verify the property's zoning classification

Answer

To check the property's title status

Question 4

What is the role of a 'buyer's lawyer' in a residential real estate transaction in Ontario?

Accepted Answer

To conduct title searches, review the agreement, prepare closing documents, and protect the buyer's legal interests

Answer

To negotiate the purchase price

Answer

To arrange the home inspection

Answer

To qualify the buyer for a mortgage

Question 5

In Ontario, what adjustments are typically made at closing in a residential transaction?

Accepted Answer

Property taxes, utilities, fuel oil, and other costs are prorated between buyer and seller as of the closing date

Answer

Only the purchase price is exchanged

Answer

No adjustments are necessary — the purchase price covers everything

Answer

Only the real estate commission is adjusted

Question 6

What is the 'requisition date' in an Ontario residential transaction?

Accepted Answer

The deadline by which the buyer's lawyer must raise any title concerns or defects with the seller's lawyer

Answer

The date the property is listed for sale

Answer

The date the mortgage is approved

Answer

The date the buyer takes possession