Humber Real Estate - Course 2, Module
5, The Financial Aspects of the Buying
and Selling Process and the Role of
Third-Party Professionals Exam Q’s &
A’S
- Home stager
- Lender (i.e. a cost associated with discharging a mortgage early)
- Surveyor
- Lawyer
- HST or capital gains tax
- Moving expenses - ANSWER-What are some examples of common expenses that
a seller may incur in a typical real estate transaction?
- Review the Agreement of Purchase and Sale
- Note any deadlines to ensure the transaction proceeds as scheduled
- Respond to any questions or concerns received from the buyer's lawyer
- Fulfill any other requirements of the transaction
- Ensure that prepaid expenses are returned to the seller by way of adjustments and
that they have settled any outstanding property tax or utility payments before closing
- Transfer the property title to the new owner - ANSWER-What tasks will a lawyer
complete when working with a seller?
Lawyer fees, brokerage fees or commissions (if applicable), and moving costs. -
ANSWER-On what types of services is HST applicable on?
When there is a capital gain realized on the sale of a seller's rental or investment
property, or non-principal residence. - ANSWER-When is capital gains tax
applicable?
On the seller's next income tax return. - ANSWER-When would the capital gains tax
be payable?
No. The seller should be advised to contact their accountant for an estimate as this
is beyond the expertise of a salesperson. - ANSWER-If a seller asks you for an
estimate of the capital gains tax payable, can you provide this service to your client?
Costs that are allocated between the seller and buyer on closing. It could be a debit
or credit to either party depending on the situation. - ANSWER-Define 'Adjustments'
when referring to the sale of a property.
Unmetered utility costs and property tax. - ANSWER-What are the most commonly
adjusted for expenses?
, - Property inspector
- Appraiser
- Surveyor
- Lawyer
- Land transfer tax and HST on various services
- Commission
- Moving expenses
- Expenses related to adjustments made on closing - ANSWER-What are some
common expenses buyers will encounter?
Information about the physical structure, including the roof, attic, walls, floors, ceiling,
windows, doors, insulation and all other visible components of the structure.
The mechanical systems are also inspected, including the condition of the heating
system, central air conditioning, electrical, plumbing and other systems. - ANSWER-
What does an inspection report by a Property Inspector cover?
- The buyer pays
- The lender requires it - ANSWER-Who normally pays for the appraisal cost of a
house during a sale? Who requires an appraisal to be completed?
The property's size, shape, terrain and accessibility. - ANSWER-What can a
surveyor's fee depend on?
Adjustment item
Note: Sometimes the buyer may be obligated to pay commission to the brokerage
that is representing them under the terms of a buyer representation agreement. In
those cases the buyer can pay the commission directly to their brokerage or instruct
their lawyer to pay the fee. - ANSWER-The commission paid to the brokerage(s) is
most commonly paid to the listing brokerage by the seller's lawyer (as per the terms
of the seller representation agreement) and appear as an ___________ __________
on the Statement of Adjustments.
The day before closing. - ANSWER-How long is a seller responsible for costs
associated with the property?
- Canadian citizen or permanent resident of Canada
- 18 years of age or older
- Must occupy the home as a principal residence within 9 months of registration
- Cannot have owned a home anywhere in the world (this is confirmed by signing an
affidavit with a lawyer.)
- If the purchase has a spouse, the spouse cannot have owned an eligible home or
had any ownership interest in an eligible home anywhere in the world while he or she
was the purchaser's spouse. (This is confirmed by signing an affidavit with a lawyer.)
If they have, then a refund would not be available to either spouse. - ANSWER-What
are the criteria to quality for the First-time buyers refund / tax credit?
Up to $4,000 - ANSWER-How much money can buyers of new homes claim for a
first-time buyer refund?
5, The Financial Aspects of the Buying
and Selling Process and the Role of
Third-Party Professionals Exam Q’s &
A’S
- Home stager
- Lender (i.e. a cost associated with discharging a mortgage early)
- Surveyor
- Lawyer
- HST or capital gains tax
- Moving expenses - ANSWER-What are some examples of common expenses that
a seller may incur in a typical real estate transaction?
- Review the Agreement of Purchase and Sale
- Note any deadlines to ensure the transaction proceeds as scheduled
- Respond to any questions or concerns received from the buyer's lawyer
- Fulfill any other requirements of the transaction
- Ensure that prepaid expenses are returned to the seller by way of adjustments and
that they have settled any outstanding property tax or utility payments before closing
- Transfer the property title to the new owner - ANSWER-What tasks will a lawyer
complete when working with a seller?
Lawyer fees, brokerage fees or commissions (if applicable), and moving costs. -
ANSWER-On what types of services is HST applicable on?
When there is a capital gain realized on the sale of a seller's rental or investment
property, or non-principal residence. - ANSWER-When is capital gains tax
applicable?
On the seller's next income tax return. - ANSWER-When would the capital gains tax
be payable?
No. The seller should be advised to contact their accountant for an estimate as this
is beyond the expertise of a salesperson. - ANSWER-If a seller asks you for an
estimate of the capital gains tax payable, can you provide this service to your client?
Costs that are allocated between the seller and buyer on closing. It could be a debit
or credit to either party depending on the situation. - ANSWER-Define 'Adjustments'
when referring to the sale of a property.
Unmetered utility costs and property tax. - ANSWER-What are the most commonly
adjusted for expenses?
, - Property inspector
- Appraiser
- Surveyor
- Lawyer
- Land transfer tax and HST on various services
- Commission
- Moving expenses
- Expenses related to adjustments made on closing - ANSWER-What are some
common expenses buyers will encounter?
Information about the physical structure, including the roof, attic, walls, floors, ceiling,
windows, doors, insulation and all other visible components of the structure.
The mechanical systems are also inspected, including the condition of the heating
system, central air conditioning, electrical, plumbing and other systems. - ANSWER-
What does an inspection report by a Property Inspector cover?
- The buyer pays
- The lender requires it - ANSWER-Who normally pays for the appraisal cost of a
house during a sale? Who requires an appraisal to be completed?
The property's size, shape, terrain and accessibility. - ANSWER-What can a
surveyor's fee depend on?
Adjustment item
Note: Sometimes the buyer may be obligated to pay commission to the brokerage
that is representing them under the terms of a buyer representation agreement. In
those cases the buyer can pay the commission directly to their brokerage or instruct
their lawyer to pay the fee. - ANSWER-The commission paid to the brokerage(s) is
most commonly paid to the listing brokerage by the seller's lawyer (as per the terms
of the seller representation agreement) and appear as an ___________ __________
on the Statement of Adjustments.
The day before closing. - ANSWER-How long is a seller responsible for costs
associated with the property?
- Canadian citizen or permanent resident of Canada
- 18 years of age or older
- Must occupy the home as a principal residence within 9 months of registration
- Cannot have owned a home anywhere in the world (this is confirmed by signing an
affidavit with a lawyer.)
- If the purchase has a spouse, the spouse cannot have owned an eligible home or
had any ownership interest in an eligible home anywhere in the world while he or she
was the purchaser's spouse. (This is confirmed by signing an affidavit with a lawyer.)
If they have, then a refund would not be available to either spouse. - ANSWER-What
are the criteria to quality for the First-time buyers refund / tax credit?
Up to $4,000 - ANSWER-How much money can buyers of new homes claim for a
first-time buyer refund?
