Humber/Ontario Real Estate Course 2 Exam Practice

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Prepare for the Ontario Real Estate Exam with our comprehensive Humber Course 2 Exam Practice quiz. Engage with multiple choice questions and detailed explanations, designed to help you excel.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

In regard to adjustments at closing, which of the following statements is true?

If fuel is a metered utility and a reading is taken on closing, no adjustment is needed.
Insurance is transferred on completion of the agreement.
Property taxes for the day of closing are the seller's responsibility.
The seller should be given credit for prepaid rent accruing from the closing date to the next rent due date.
The mortgage registration fee is handled by the buyer.
Utilities for previous months are prorated between buyer and seller.

The correct answer is: If fuel is a metered utility and a reading is taken on closing, no adjustment is needed.

In real estate transactions, adjustments at closing are necessary to ensure that the financial responsibilities associated with the property are properly allocated between the buyer and the seller. When it comes to a metered utility like fuel, if a reading is taken on the closing date, no adjustment is needed since the final bill can be calculated based on the actual usage between the last reading and the closing date. This means that there should be no need to adjust or credit for any fuel usage that may have occurred up to the closing date, as the final bill will reflect the accurate consumption during that period. While some of the other statements may sound plausible, they do not accurately reflect the typical practices related to adjustments at closing in Ontario real estate transactions.