Humber/Ontario Real Estate Course 1 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 1 Exam with our comprehensive quiz. Test your understanding with multiple choice questions and detailed explanations. Build confidence and knowledge for a successful exam experience!

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A real estate offer is valid if:

It is signed by all parties involved.
It includes a witness signature.
The property address is clearly stated.
It specifies the purchase price and terms.
The offer is presented in a specific format.
The offeror has received necessary legal advice.

The correct answer is: It specifies the purchase price and terms.

A real estate offer being valid hinges on several key components, and specifying the purchase price and terms is indeed critical. A clear delineation of what is being offered, including price and terms, serves as a foundation for any transaction. This clarity enables all parties to understand the commitments and expectations involved, which is essential for a legally binding agreement. In real estate transactions, without a specified purchase price, parties might have different interpretations of the offer, leading to misunderstandings and potential disputes. Additionally, detailing the terms helps to outline contingencies, deadlines, and other relevant conditions, providing a roadmap for both the buyer and seller. While the other factors listed can contribute to the overall effectiveness and clarity of an offer—such as signatures from all parties, a clearly stated property address, and legal advice—none are as foundational to the offer's validity as the specification of the purchase price and terms. Those details directly inform the actions and commitments of the parties involved, making them essential for a valid offer.