Humber/Ontario Real Estate Course 2 Exam Practice

How should an amendment to a purchase agreement correctly reference the original document?

1. By including original signatures only

2. Without any reference to the initial agreement

3. By clearly cross-referencing it

4. Only through verbal agreement from all parties

5. By including the details in a separate document

The correct answer is: By clearly cross-referencing it

When making an amendment to a purchase agreement, it is crucial to clearly cross-reference the original document to ensure that all parties understand which agreement is being modified. This reference helps tie the amendment to the original agreement and maintains a clear record of the changes made. By including a clear cross-reference, any confusion or misunderstandings can be avoided, and all parties involved can easily track the changes made to the initial agreement. Options A, B, D, and E are incorrect because they do not provide the necessary clarity and reference back to the original document, which is essential when making amendments to a purchase agreement.