Humber/Ontario Real Estate Course 3 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 3 Exam. Study with challenging questions and detailed explanations to enhance your understanding. Get ready to excel in your exam!

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A seller can face various expenses when selling a home. Which of the following is NOT one of them?

Discharge penalties for an existing mortgage.
Legal fees relating to the sale completion.
Payment for a survey of the property required by the buyer.
Possible taxation such as capital gains tax.
Real estate agency commissions.
Repairs and upgrades requested by the buyer.

The correct answer is: Payment for a survey of the property required by the buyer.

The correct response is that payment for a survey of the property required by the buyer is not typically an expense that the seller has to incur. In a real estate transaction, it is generally the buyer's responsibility to order and pay for any surveys, as the survey serves their interest in verifying property boundaries and identifying any encroachments or easements. The seller's primary financial obligations are associated with the transfer of ownership and preparing the property for sale. The other expenses listed, such as discharge penalties for an existing mortgage, legal fees relating to the sale completion, possible taxation such as capital gains tax, real estate agency commissions, and repairs and upgrades requested by the buyer, are all common costs that a seller may need to manage during the home-selling process. These costs directly relate to the seller's responsibilities in completing the sale and ensuring the property is in a suitable condition for prospective buyers.