Humber/Ontario Real Estate Course 2 Exam Practice

What should a buyer verify as part of due diligence concerning property taxes?

1. The amount due may be verified through the seller’s accountant

2. Future tax increases can be neglected as they are uncertain

3. The current amount and due dates with the local municipality

4. The government adjusts taxes every ten years

5. The property tax assessment does not change ownership

6. The buyer's lawyer cannot typically access this information

The correct answer is: The current amount and due dates with the local municipality

As part of due diligence concerning property taxes, a buyer should verify the current amount and due dates with the local municipality. This is essential because property taxes are directly tied to the property and can vary based on the location and assessment value. By confirming the current amount and due dates with the local municipality, the buyer can ensure they are fully aware of their property tax obligations. Option A is incorrect because the buyer should verify property tax information directly with the local municipality, not through the seller's accountant. Option B is incorrect because future tax increases should not be neglected, as they can have a significant impact on the ongoing cost of owning the property. Option D is incorrect because property taxes are typically adjusted annually, not every ten years. Option E is incorrect because property tax assessments can change when ownership of the property is transferred. Option F is incorrect because the buyer's lawyer can typically access property tax information as part of the due diligence process.