Humber/Ontario Real Estate Course 3 Exam Practice

The completion date in a real estate transaction is often used for which of the following purposes?

1. As a benchmark for the seller's apportionment of costs

2. As the date for reading water and utility meters to minimize adjustments

3. As the date when rental agreements with tenants must be terminated

4. As the moment when liens and encumbrances must be cleared

5. As a reference for adjusting property taxes

6. As the target for title registration completion

The correct answer is: As the date for reading water and utility meters to minimize adjustments

The completion date in a real estate transaction serves several important functions, and one of its primary purposes is indeed related to the reading of water and utility meters. This date is significant because it marks the transition of ownership and occupation of the property from the seller to the buyer. Reading the water and utility meters on the completion date helps to ensure that all final bills and usage charges are accurately apportioned between the parties. By recording the meter readings on this specific date, both the seller and the buyer can avoid disputes over utility costs that occur after the completion date. This is a key element in ensuring that the seller is only responsible for utility usage up until the completion date, while the buyer assumes responsibility for usage thereafter. While other options also relate to various aspects of the transaction, they do not specifically align with the primary purpose of the completion date in the context of utility management, which makes this option the most appropriate.