Which clause in the Agreement of Purchase and Sale relates to the PDS form?

Prepare for the NSAR Salesperson License Test with flashcards and multiple choice questions, each with hints and explanations. Get ready for your real estate exam!

The correct answer is based on the relevance of the Property Disclosure Statement (PDS) within the context of the Agreement of Purchase and Sale. Clause 3 specifically addresses the seller's obligations regarding the PDS form, stating that the seller must provide the PDS to the buyer as part of the transaction. This requirement is crucial because the PDS serves to inform the buyer about the condition of the property and any known issues, thus enabling them to make a more informed decision.

By specifically mentioning the PDS, this clause ensures that there is transparency in the sale process and that the buyer is protected from potential undisclosed problems. This enhances the ethical standards and practices in real estate transactions, reinforcing the importance of full disclosure in maintaining trust between the involved parties.

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