To communicate an intention to exercise an option, a buyer: a) is required to gi

Question

To communicate an intention to exercise an option, a buyer:

a) is required to give notice to the seller in writing.

b) may use any means to give notice, unless a particular manner for exercising the option is specified in the option agreement.

c) does not need to give the seller any notice.

d) needs to wait for the seller to contact them first.

93. A recorded option ceases to constitute constructive notice of a buyer’s option rights when:

a) six months have run after the expiration date stated in the recorded option agreement.

b) if the date of the option cannot be determined from the recorded agreement, six months have run after the option was recorded.

c) Either a or b.

d) Neither a nor b.

94. The creation of a joint tenancy requires the conveyance of four unities, which are:

a) title, possession, space and ownership.

b) interest, title, vesting and ownership.

c) time, interest, possession and quiet enjoyment.

d) title, time, interest and possession.

95. To begin an analysis of income property, a buyer’s agent may ask the seller’s agent to produce:

a) information regarding security arrangements on or near the property during the past year.

b) a copy of exclusions to the owner’s policy of title insurance.

c) the lender’s name and the balance, payments, interest rates and due date on each existing mortgage.

d) Any of the above.

Explanation / Answer

1b) may use any means to give notice, unless a particular manner for exercising the option is specified in the option agreement.

The buyer is required to give notice in any manner unless specified in the agreement. Hence all other options are incorrect.

93: c) Either a or b

If the date can be determined the option ceases 6 months after the date else 6 months after the option was recorded.

94: d) title, time, interest and possession.

Unity of title implies that the joint tenants take title by the same instrument. Unity of time, implies that they receive their interest in title at the same time. Unity of interest, means they own equal shares. Unity of possession means each tenant has the right to own the entire property. Hence other options are incorrect.

95: d) Any of the above.

The agent needs to review the documents to assess the worth of the income property.

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