Humber/Ontario Real Estate Course 4 Exam Practice

How should a schedule be attached to a preprinted agreement of purchase and sale?

1. A copy of the agreement should be attached as schedule

2. A reference to the schedule should appear on the first page of the agreement

3. Schedules need not be referenced in the agreement

4. Schedules override any preprinted clauses

5. The schedule must be attached before the first page

6. A schedule does not require initials

The correct answer is: A reference to the schedule should appear on the first page of the agreement

The correct choice emphasizes the importance of clarity and organization in a legally binding document such as an agreement of purchase and sale. By having a reference to the schedule on the first page of the agreement, it ensures that all parties are aware of the additional details being provided through the attached schedule. This approach enhances transparency and prevents any potential misunderstandings regarding the terms of the agreement. Referencing the schedule makes it easier for all parties to locate and understand the specifics that may alter or clarify the main agreement. This is a common practice in real estate documents, where schedules often include important information such as inclusions and exclusions, specifics about the property, or financing terms that are not covered in the primary body of the agreement. Overall, referencing enhances the document's integrity and serves as a safeguard in case of future disputes.