Residential Transactions Flashcards
6 cards from real OREA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Residential Transactions flashcards as text
In a typical Ontario residential real estate transaction, what is the correct order of steps?
Answer: Listing, showing, offer and negotiation, acceptance, conditions fulfilled, closing
A typical residential transaction follows this sequence: the property is listed for sale, shown to prospective buyers, an offer is made and negotiated, the offer is accepted (possibly with conditions), conditions are fulfilled or waived, and the transaction closes.
What is the standard form 'Agreement of Purchase and Sale' used in Ontario residential transactions?
Answer: The OREA Form 100, a standardized form used by real estate registrants for residential resale transactions
The OREA (Ontario Real Estate Association) Form 100 is the standardized Agreement of Purchase and Sale used for residential resale transactions in Ontario. It includes standard clauses and space for additional terms and conditions.
In Ontario, what is the purpose of a 'home inspection' in a residential transaction?
Answer: To assess the physical condition of the property, including its structural, mechanical, and electrical systems, and identify potential defects
A home inspection is a visual examination of the property's physical condition by a qualified inspector. It covers the structure, roof, plumbing, electrical, HVAC, and other systems, helping the buyer make an informed decision about the purchase.
What is the role of a 'buyer's lawyer' in a residential real estate transaction in Ontario?
Answer: To conduct title searches, review the agreement, prepare closing documents, and protect the buyer's legal interests
The buyer's lawyer performs critical functions including searching title, reviewing the Agreement of Purchase and Sale, examining the survey, conducting off-title searches, preparing closing documents, registering the transfer, and disbursing funds at closing.
In Ontario, what adjustments are typically made at closing in a residential transaction?
Answer: Property taxes, utilities, fuel oil, and other costs are prorated between buyer and seller as of the closing date
At closing, a 'statement of adjustments' prorates costs between buyer and seller. Common adjustments include property taxes (prepaid or in arrears), fuel oil, utility deposits, and any prepaid or owing amounts, all calculated as of the closing date.
What is the 'requisition date' in an Ontario residential transaction?
Answer: The deadline by which the buyer's lawyer must raise any title concerns or defects with the seller's lawyer
The requisition date is the deadline specified in the agreement by which the buyer's lawyer must submit written objections (title requisitions) regarding any defects or concerns with the property's title. The seller then has a specified time to resolve them.