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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Which statement best describes a statement of adjustments in real estate?

It is typically prepared by the seller's real estate agent.
It only includes adjustments related to the seller.
It details credits and debits between the buyer and seller, and balance due at closing.
It is prepared by the buyer's legal representative.
It solely focuses on property taxes.
It excludes utility bills adjustments.

The correct answer is: It details credits and debits between the buyer and seller, and balance due at closing.

A statement of adjustments in real estate is a document that details the financial credits and debits between the buyer and the seller leading up to the closing of a real estate transaction. It includes adjustments for items such as property taxes, prepaid expenses, rental income, and deposits. A key component of a statement of adjustments is to ensure that both parties are paying their fair share of expenses related to the property. Therefore, option C correctly captures the essence of what a statement of adjustments is meant to achieve. Regarding the other options: A. A statement of adjustments is typically prepared by legal professionals, not the seller's real estate agent. B. It includes adjustments related to both the buyer and the seller, not just the seller. D. The statement of adjustments is usually prepared by the seller's legal representative, not the buyer's. E. While a statement of adjustments may involve property taxes, it is not solely focused on them. F. Utility bill adjustments are often included in a statement of adjustments, so they are not necessarily excluded.