Humber/Ontario Real Estate Course 3 Exam Practice

What should be done when drafting an agreement of purchase and sale with regard to family heirlooms?

1. Family heirlooms must always be included in the sale of the home

2. Heirlooms cannot be considered taxable items

3. Heirlooms must be explicitly excluded by the seller if not included

4. Seller is not required to disclose family heirlooms

5. Family heirlooms should be valued separately

6. Agreement must list all personal property, including heirlooms

The correct answer is: Heirlooms must be explicitly excluded by the seller if not included

In drafting an agreement of purchase and sale, it is crucial to specify the inclusion or exclusion of personal items, such as family heirlooms. If the seller intends to retain family heirlooms and they are not to be included as part of the sale, it is imperative that these items are explicitly excluded in the agreement. This clear documentation protects both parties' interests by preventing misunderstandings or disputes regarding what is included in the sale versus what is not. If heirlooms are not explicitly excluded by the seller, there is a risk that they may be assumed to be included in the transaction, leading to potential conflict after the sale is finalized. Therefore, making the exclusion clear in the agreement ensures that expectations align and prevents legal issues arising from any ambiguity related to personal property.