Humber/Ontario Real Estate Course 2 Exam Practice

Which statement correctly describes adjustments on closing in a real estate transaction?

1. The completion date falls under the buyer's responsibility.

2. Closing adjustments include taxes and house insurance.

3. Metered utilities always require adjustments.

4. The completion date falls under the seller's responsibility.

5. Transfer fees are not adjusted.

6. Only property taxes are adjusted.

The correct answer is: The completion date falls under the buyer's responsibility.

In a real estate transaction, the completion date typically falls under the buyer's responsibility. This is because the buyer is responsible for paying closing costs and obtaining mortgage financing within the specified time frame. The completion date is an essential part of the closing process as it marks the official transfer of ownership from the seller to the buyer. Therefore, Option A is the correct statement regarding adjustments on closing in a real estate transaction. Options B, C, E, and F are incorrect. - Option B is incorrect because closing adjustments can include various items such as property taxes, utilities, and condominium fees, in addition to taxes and house insurance. - Option C is incorrect because not all metered utilities require adjustments; it depends on the specific agreement between the buyer and the seller. - Option E is incorrect because transfer fees are often subject to adjustments in a real estate transaction. - Option F is incorrect because in addition to property taxes, other expenses like utilities, maintenance fees, and rent (if applicable) may also be adjusted during closing.