Humber/Ontario Real Estate Course 4 Exam Practice

What should a registrant do when including a schedule in a purchase agreement?

1. Ensure the buyer initials every page

2. Include a reference to the schedule on the first page

3. Avoid referencing the schedule in the agreement

4. Cross-reference information is not necessary

5. Attach schedule before signature pages

6. Attach schedule after the preprinted agreement

The correct answer is: Include a reference to the schedule on the first page

Including a reference to the schedule on the first page of a purchase agreement is important for ensuring clarity and organizing the document effectively. This reference acts as an introduction, guiding the reader to the additional information contained in the schedule, which may include specific terms, descriptions, or contingencies that are critical to the transaction. By making a clear reference to the schedule at the beginning, the registrant enhances the document's structure and helps all parties involved to understand that additional details are provided in the attached schedule. This practice can prevent misunderstandings and ensures that the information in the schedule is acknowledged as part of the overall agreement from the outset. Other options that suggest actions like having the buyer initial every page or attaching the schedule at varying points in the document may introduce complications, as they do not emphasize the importance of referencing the schedule upfront. Not referencing the schedule at all could lead to confusion about what information is included, and forgoing cross-referencing can overlook critical aspects of the transaction. Therefore, making a reference on the first page is a best practice that promotes clarity and organization in legal documentation.