Humber/Ontario Real Estate Course 2 Exam Practice

Which of the following statements is accurate regarding the buyer's responsibilities in a real estate transaction?

1. The buyer is responsible for costs associated with any mortgage taken back by the seller

2. The buyer is responsible for deed preparation

3. The seller is responsible for deed preparation

4. The seller is responsible for land transfer tax

5. The buyer is responsible for land transfer tax

6. The seller is responsible for costs associated with any mortgage taken back by the seller

The correct answer is: The buyer is responsible for costs associated with any mortgage taken back by the seller

In a real estate transaction, when a mortgage is taken back by the seller, it means the seller is financing the purchase for the buyer. In such cases, it is typically the buyer's responsibility to cover the costs associated with this type of mortgage. This includes but is not limited to legal fees, registration fees, and other expenses related to setting up the mortgage. Therefore, option A is the correct choice as it accurately states that the buyer is responsible for costs associated with any mortgage taken back by the seller. Regarding the other options: B. The buyer is not typically responsible for deed preparation; this task is usually handled by the seller. C. It is generally the seller's responsibility, not the buyer's responsibility, to prepare the deed for the property. D. The buyer, not the seller, is typically responsible for paying the land transfer tax as it is a cost associated with acquiring the property. E. This statement is inaccurate as the buyer is usually responsible for paying the land transfer tax.