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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Which risk is associated with the phrase 'included in' regarding HST in a purchase agreement?

Any HST risk is borne by the seller.
The risk is shared equally between buyer and seller.
The risk of HST payment is on the buyer's client.
The property is considered tax-exempt.
The seller and buyer agree it nullifies the offer if HST is applicable.
The HST risk is transferred to the buyer’s agent.

The correct answer is: Any HST risk is borne by the seller.

When the phrase 'included in' is used regarding HST in a purchase agreement, it signifies that any HST risk is borne by the seller. This means that the seller is responsible for any potential HST implications associated with the transaction. The inclusion of this phrase in the agreement shifts the burden of HST payment and compliance from the buyer to the seller. This allocation of risk to the seller ensures that the buyer is not held accountable for any unforeseen HST liabilities, providing them with a level of protection in the transaction. Therefore, option A is the correct choice as it accurately captures the risk associated with the phrase 'included in' regarding HST in a purchase agreement. In contrast, the other options do not accurately reflect the implications of the phrase 'included in' in relation to HST in a purchase agreement.