Which standard condition addresses the disclosure of incumbrances?

• A. Time limit for deducing title
• B. Formation of contract and deposit
• C. Disclosure of incumbrances
• D. Available remedies for breach of contract

Answer: (C)

Disclosures about encumbrances are addressed by a standard condition that requires the seller to reveal any matters known to them that would restrict or affect the property’s use or value. This covers encumbrances such as easements, rights of way, restrictive covenants, and other charges that could limit what the buyer can do with the land. The point of this condition is to give the buyer a full and honest picture before completion, so they can decide whether to proceed, negotiate a price adjustment, or walk away if the encumbrances are unacceptable. It works alongside title searches and the seller’s information disclosures, helping to fill gaps and prevent surprises after exchange. If known encumbrances are not disclosed, the buyer can pursue remedies for breach of contract or misrepresentation, depending on the circumstances. The other standard conditions deal with when the contract is formed, how the deposit is handled, or what remedies apply for breach, which are separate from the duty to disclose encumbrances.