Humber/Ontario Real Estate Course 2 Exam Practice

In this scenario, the most suitable clause to include in a property listing that requires the buyer to acknowledge limitations due to a municipal bylaw is the Acknowledgement clause.

An Acknowledgement clause in a real estate transaction is used to confirm that parties are aware of specific facts or conditions. In this case, including an Acknowledgement clause ensures that the buyer recognizes and acknowledges the limitations that may be imposed by a municipal bylaw affecting the property.

The other options are not the most appropriate in this situation:

- Conditional clause typically sets a condition that must be met for the contract to proceed.

- Direction/consent clause is used to outline how specific actions will be carried out or to seek permission for particular activities.

- Representation/warranty clause involves a statement made by one party about the truth or accuracy of certain facts.

- Suspensive clause is a clause where the contract is conditional on a specific event happening.