Humber/Ontario Real Estate Course 1 Exam Practice

If Seller Reed and Buyer Marino agree to use electronic signatures, what is the final step to finalize their agreement?

1. Electronic signatures are only valid for service agreements.

2. Acknowledgment of receipt by both parties finalizes the agreement.

3. The agreement is completed when Reed receives the electronic document.

4. Verification of correct email addresses is not necessary.

The correct answer is: Acknowledgment of receipt by both parties finalizes the agreement.

The process of finalizing an agreement with electronic signatures typically includes the acknowledgment of receipt by both parties. This step ensures that both the seller and the buyer confirm they have received the signed documents, which is crucial in establishing that both parties are in agreement and understand the terms being set forth. In the context of a real estate transaction, it's important that both parties acknowledge their receipt to create a legally binding contract. Acknowledgment serves to solidify the transaction and confirms that both are aware of and agree to the contents of the agreement. The validation of electronic agreements thus hinges upon both parties' acknowledgment, which acts as a clear affirmation that they are accepting the electronic signatures and the contents of the document. This solidifies the legal standing of the agreement and contributes to a smooth transaction process.