Humber/Ontario Real Estate Course 4 Exam Practice

What should a buyer consider regarding clauses for inspection in an agreement of purchase and sale?

1. A final inspection clause is mandatory in every agreement of purchase and sale.

2. Inspection clauses are only necessary for commercial properties.

3. It is advisable to include a pre-closing inspection clause to avoid discovering post-closure damages.

4. Buyers do not have the legal right to add inspection clauses in residential property contracts.

5. Pre-closing inspections can be conducted without any clauses if agreed verbally.

6. Inspection clauses are the seller's responsibility to include.

The correct answer is: It is advisable to include a pre-closing inspection clause to avoid discovering post-closure damages.

When considering clauses for inspection in an agreement of purchase and sale, it's crucial for buyers to understand the importance of including a pre-closing inspection clause. This clause is highly advisable because it allows the buyer to assess the condition of the property right before the transaction is finalized. By conducting an inspection shortly before closing, potential issues or damages can be identified, allowing the buyer to address these concerns with the seller or, if necessary, negotiate remedies before the sale is completed. This proactive approach helps mitigate the risk of unexpectedly discovering significant problems after the closing, which could lead to additional expenses or disputes. Including such clauses provides buyers added assurance and a clearer understanding of what they are purchasing, which is a vital aspect of the real estate transaction process.