Humber/Ontario Real Estate Course 2 Exam Practice

How should a warranty clause for a seasonal feature like a pool be structured?

1. Include a seller’s acknowledgment of good condition.

2. Include a clause that survives the termination date.

3. Request multiple deposits based on condition confirmations.

4. Seek verbal assurances from the seller.

5. Demand an additional summer inspection clause.

6. Include only a winter warranty validity period.

The correct answer is: Include a clause that survives the termination date.

A warranty clause for a seasonal feature like a pool should be structured to include a clause that survives the termination date. This is crucial because a pool may not be operational or easily inspected during certain times of the year, especially in colder climates, hence having a clause that extends beyond the initial termination of the agreement provides protection for the buyer in case any issues with the pool arise after the deal concludes. This ensures that the seller remains responsible for any latent defects or problems that may surface at a later time. Remember that in real estate transactions, it is essential to have clauses that offer ongoing protection for all parties involved.