In a typical residential real estate offer process, what happens immediately after the seller accepts the buyer's offer?
Correct Answer
D) A binding purchase and sale agreement is formed
When a seller accepts a buyer's offer without changes, a legally binding purchase and sale agreement is immediately created. This contract outlines all terms and conditions of the sale, including price, closing date, and any conditions that must be satisfied before the transaction can complete.
Why This Is the Correct Answer
When a seller accepts a buyer's offer without modifications, a legally binding purchase and sale agreement is immediately formed. This contract establishes the legal obligations of both parties and contains all essential terms including purchase price, closing date, conditions, and other negotiated terms. The acceptance creates mutual consideration and agreement, forming a valid contract under Canadian real estate law that both parties must honor.
Why the Other Options Are Wrong
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- → A buyer's lawyer requests a status certificate and pays the fee on May 1. The corporation never delivers it. After closing, the corporation claims the seller owed $3,000 in common expense arrears and demands it from the buyer, who relied on the silence. What is the effect under s. 76 of the Condominium Act, 1998?
- → A status certificate delivered to a buyer omits a $4,000 special assessment that the board levied against the unit after the current budget date to increase the reserve fund. The buyer relied on the certificate and closed. Under the Condominium Act, 1998, what is the result?
- → A seller's salesperson is estimating the buyer's costs of reviewing an Ontario condominium unit's status certificate. What is the most the corporation may charge for providing the certificate?
- → A listing salesperson expects offers next week on a resale condominium unit and knows buyers will want the status certificate. By when must the corporation give a status certificate once it is requested?
- → An investor buyer wants to know how many units in a condominium building were rented last year before making an offer. Which document must state the number of units for which the corporation received lease notices during the preceding fiscal year?
- → What is the most common type of residential property ownership in Canada?
- → A buyer reviewing a status certificate asks what the condominium's reserve fund may be spent on. Under the Condominium Act, 1998, what is the permitted purpose?
- → An established Ontario condominium corporation completed its most recent reserve fund study in 2024. Under O. Reg. 48/01, when must it complete its next reserve fund study?
- → A buyer's status certificate shows that the corporation received a new reserve fund study two months ago, and the board has not yet sent owners anything about it. What does the Condominium Act, 1998 require of the board?
- → The seller of a condominium unit got board approval and signed a registered s. 98 agreement with the corporation to install a hot tub on her exclusive-use terrace, taking on its repair and insurance costs. How does that agreement affect the buyer?
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A buyer's financing condition cannot be satisfied by the condition deadline, and the buyer is not willing to buy without a mortgage. Under a standard Alberta residential purchase contract, what are the buyer's options?
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