Humber/Ontario Real Estate Course 3 Exam Practice

What does a true condition precedent involve in a real estate agreement?

1. Flexibility in fulfillment

2. Written specificity

3. Addressing loan approvals

4. Adjustment to buyer's needs

5. Primarily related to severance approvals

6. Conditions subject to change

The correct answer is: Written specificity

A true condition precedent in a real estate agreement requires clear and written specificity about the conditions that must be met for the agreement to move forward. This ensures that all parties understand exactly what is required before the contract becomes binding. Such conditions are concrete and leave no room for ambiguity, which is crucial in real estate transactions where misunderstandings can lead to significant legal implications or financial loss. Written specificity helps in enforcing the terms effectively; if a dispute arises, the documented conditions serve as a reference point. Therefore, this clarity is vital to protect the interests of the parties involved. Each condition also must be capable of being executed or fulfilled in a definitive manner. Conditions that lack this level of clarity may lead to confusion, dispute, or possible failure of the contract. The other options may touch upon relevant aspects of agreements but do not capture the essential characteristic of a true condition precedent, which is the clear and explicit formulation of terms that must be met for contractual obligations to be enforced.