Humber Real Estate - Course 2, Module 19, Additional Sale-Related Documents and Other Legal Obligations Graded A

Humber Real Estate - Course 2, Module 19, Additional Sale-Related Documents and Other Legal Obligations Graded A The brokerage As a salesperson, you may not be required to prepare a trade record sheet. They are typically done by who? True. Any changes must be in a new document called an amendment. Only the altered or amended term(s) are written in the new document, and it's meant to be read in conjunction with the existing agreement. True or false? When an offer has been accepted, there can be no change to the document. Irrevocable time period Just like an agreement of purchase and sale, an amendment has an __________ ______ _________. - Cross reference the amendment to the agreement of purchase and sale - Insert the wording being deleted (when required) exactly as shown on the agreement of purchase and sale - Insert the new wording (when required) exactly as it should be shown on the agreement of purchase and sale - Insert the irrevocable date - Have all required parties - that being all those who signed the original agreement of purchase and sale - sign the amendment What steps are required to document an amendment to an agreement of purchase and sale? False. All parties who signed the original agreement must sign the amendment before the irrevocable time period is over for it to take effect. True or false? It's okay to have only 1 seller sign an amendment (even though 2 signed the original agreement). The Confirmation of Acceptance, and Acknowledgement (that they have received their copies of the new paperwork) When an amendment has been accepted, what must also be signed? True. Contact information is also included. True or false? The Acknowledgement clause gives the brokerage permission to contact the lawyers for each party (aka solicitor)? Whether the condition(s) included were: - Condition precedent - Condition subsequent - A true condition precedent An accepted offer containing one or more conditions will require written notice to be provided to the other party. What will impact the type of notice provided? Notice that the condition is either fulfilled or waived. *Notice is required to make the agreement legally binding. What type of notice is required for Condition Precedent? Notice is only required if the party is not able to fulfill the condition or is not waiving the condition. In this case, a notice of termination would be provided. *No notice is required to make the agreement legally binding. If no notice is given and the condition is not fulfilled, the agreement remains binding. What type of notice is required for Condition Subsequent? Notice of fulfillment Note: If there are multiple conditions associated with the accepted offer, a separate notice may be required for each condition unless the conditions are fulfilled and completed at the same time. In that case, one notice itemizing the conditions can be used, When a condition is fulfilled exactly as in the agreement, the other party is notified using a ______ __ _______. - Cross reference the notice to the agreement of purchase and sale - Insert the exact clause wording being fulfilled - The party providing the notice signs and dates the notice - The party receiving the notice signs, dates and inserts the time when the notice was received - It's ok for a brokerage to sign *only the acknowledgement* on behalf of a client but a customer must sign on their own, except 1. If it's a multiple representation situation, the brokerage cannot receive notices on behalf of the clients - The acknowledgement must be completed prior to the expiry of the time period provided for in the accepted offer relating to the condition(s) - Copies of the notice are provided to each party and a copy is retained by the brokerage(s) When completing a Notice of Fulfillment of Condition(s), what steps are required? Waiver provision A waiver can only be used to waive or remove a condition if the clause in the original accepted offer contains a ________ ________. Fulfillment If a condition is a true condition precedent, it cannot be waived and only a notice of ____________ may be used. No. Because the condition wasn't *exactly* as written in the agreement, this condition should be waived by the buyer. A buyer has an insurance condition on their offer, and it was conditional on the insurance quote to be under $1000 for the year, but it's $1100.