Humber/Ontario Real Estate Course 2 Exam Practice

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Prepare for the Ontario Real Estate Course 2 Exam with our comprehensive practice tests. Study with flashcards, multiple choice questions, and detailed explanations to ensure you are ready for exam day!

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A seller's lawyer learns of a title defect close to the closing date. Which of the following actions is the most appropriate?

Ignore the defect and proceed with the transaction.
Delay the closing until the defect is resolved.
Inform the buyer and negotiate a resolution.
Transfer the title despite the defect.
Cancel the sale immediately.
Request a higher price to compensate.

The correct answer is: Inform the buyer and negotiate a resolution.

In this scenario, the most appropriate action for the seller's lawyer to take is to inform the buyer and negotiate a resolution, as stated in option C. It is crucial to disclose any title defects to the buyer and work towards finding a solution that is agreeable to all parties involved. Ignoring the defect (option A), transferring the title despite the defect (option D), cancelling the sale immediately (option E), or requesting a higher price (option F) could lead to legal issues and further complications. Delaying the closing until the defect is resolved (option B) could be considered, but communication and negotiation with the buyer should be the initial course of action to ensure transparency and trust in the transaction.