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!

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What is the required tax adjustment for a property sold for $254,000 with property taxes already covered for the year amounting to $2,450, if the closing date is September 14th?

Buyer; $524.11
Buyer; $824.33
Seller; $731.64
Seller; $845.47
Buyer; $1,724.50
Seller; $523.71

The correct answer is: Seller; $731.64

If the closing date is September 14th, then the seller is responsible for the property taxes for the portion of the year they still owned the property. This means they are responsible for 257 days (from January 1st to September 14th) and the buyer is responsible for the remaining 108 days (from September 15th to December 31st). This amounts to a tax adjustment of $731.64 for the seller, as they will receive the portion of the property tax already paid by the buyer for the year. Option A, B, E, and F are incorrect because they suggest that the buyer is responsible for the tax adjustment, which is not the case. Option D is incorrect because it overestimates the tax adjustment amount, as it assumes the buyer has already paid the full amount for the year.