Humber/Ontario Real Estate Course 3 Exam Practice

The correct answer is to send a requisition letter to the seller's lawyer regarding the matter. This step is crucial for the buyer's lawyer because encumbrances can affect ownership and the buyer’s ability to use the chattels. A requisition letter serves as a formal inquiry or request for clarification and information about the encumbrances. The lawyer typically seeks to resolve any outstanding issues before closing the transaction, ensuring that the buyer is fully informed about any legal or financial implications related to the encumbrances on the chattels. Addressing this issue proactively is important to protect the buyer's interests and to clarify any uncertainties that could impact their rights once the sale is finalized. This approach allows for negotiation and resolution before the closing date, which is critical to maintaining a smooth transaction process. Contextually, this choice aligns with standard legal practice, where diligence in addressing potential issues is essential before completing a property sale.