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Case Study Alfred Stewart of ABC Realty Inc. is preparing an offer for his buyer client on a property at 67 Drive in Anycity listed

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Case Study Alfred Stewart of ABC Realty Inc. is preparing an offer for his buyer client on a property at 67 Drive in Anycity listed by Gloria Chen of XYZ Real Estate Ltd 67 Wentworth Drive insulation (UFFI). The is an older, detached bungalow which has been insulated with urea formaldehyde foam buyer is aware of the presence of UFFI and intends to have it removed after the s completed There is a minor, overhead easement at the rear of the property line for the supply of hydro servies Although this is visible when inspecting the site, the easement has not been identified in the agreement of purchase and sale An offer of $215,000 numbers were inserted in the offer was prepared by Alfred. Both XYZ Real Estate Ltd's and ABC Realty Inc's fax Clause 3 (Notices) and the following UFFI clause was included on Schedule "A" of The Seller discloses and the Buyer acknowledges that the building contains urea formaldehyde foarm insulation. The Buyer accepts the property in that state and further acknowledges that the Seller does not warrant the quality or quantity of the insulation or the quality of its installation. The offer was presented to the sellers and, after some deliberation, they decided to make a counter offer by raising the purchase price to $220,000. The counter offer was presented to the buyer who decided to accept it. Alfred called Gloria to let her know the offer was accepted and then faxed a copy of the accepted Agreement to XYZ Real Estate Ltd about 1 hour later, but still within the irrevocable time period Answer the following three questions based on the soenario above and on the preprinted wording in the OREA Agreement of Purchase and Sale (form 100), a blank copy of which is provided in the Appendox 43 After the offer was accepted, the buyer is discussing the offer with a friend. The friend comments that the UFFI clause that was added to Schedule A conflicts with the pre-printed clause in the offer (Clause 23-UFFI), Will this discovery create a problem for the buyer or seller, and why? a No, because the listing agreement identfied UFFI in the home and the buyer acknowledged this. The information on the listing agreement supersedes the agreement of purchase and sale. b Yes, because the contract is not definite and clear, a new agreement will have to be signed with Clause 23 c No, because the Agreement states if there is a conflict between anything added to the Agreement and the d Yes, the pre-printed clause states that no building on the deleted from the agreement and initialed by all parties d portion, the added provision automatically takes the place of the pre-printed terms. property contains UFFI, while the clause on Schedule A contradicts this. The seller could be found guilty of misrepresentation. 44 When would notice of acceptance of the Agreement be deemed to have been received by the seller and given by the buyer? When any sales representative of XYZ Real Estate Lrd. has personaly received the fax that was sent to the brokerage's fax number When Alfred called Gloria and verbally provided notice that the buyers had accepted the offer When the acceptad offer was faxed to the fax number indicated on the offer for delivery of documents to the a b e When the seler has signed acknowledging receipt of their copy of the accepted agreement of purchase and

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