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.

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The closing date of a transaction is May 14, and the year's taxes of $2,200 have not been paid. Who gets credit and for how much on the statement of adjustments?

Buyer; $808
Buyer; $802
Seller; $808
Seller; $802
Seller; the full amount

The correct answer is: Buyer; $802

In this scenario, since the closing date is on May 14 and the year's taxes of $2,200 have not been paid yet, the seller owes the buyer for the portion of the year during which they still owned the property. As the seller owned the property for the first 134 days of the year (January 1 to May 14), the seller owes the buyer for this period. To calculate this adjustment, you can divide $2,200 by 365 days to determine the daily tax rate, which is approximately $6.03 per day. Then, multiply this daily rate by the 134 days that the seller owned the property during the year, resulting in a credit of $808 to be given to the Buyer on the statement of adjustments. Therefore, the correct answer is that the Buyer receives a credit of $802 on the statement of adjustments.