Humber/Ontario Real Estate Course 3 Exam Practice

What is one of the responsibilities of the seller's lawyer in a property conveyance?

1. Completes the title search

2. Arranges title insurance

3. Prepares a draft deed

4. Prepares the statement of adjustments

5. Secures financing for the buyer

6. Represents the buyer in all transactions

The correct answer is: Prepares the statement of adjustments

The preparation of the statement of adjustments is indeed one of the responsibilities of the seller's lawyer in a property conveyance. This document details the financial obligations of both the seller and the buyer, ensuring that all costs associated with the property transfer, such as property taxes, utilities, and any other fees, are accounted for. It ensures that each party understands what they are responsible for financially up to the closing date. While completing a title search and arranging title insurance are often critical components of the property transaction process, these responsibilities might more commonly fall under the duties of the buyer's lawyer or a title insurance company, rather than the seller's lawyer. The seller's lawyer is typically more focused on the aspects that directly relate to the sale's closing and the proper transfer of ownership. Preparing a draft deed is also typically part of the seller's lawyer's duties, but it is one component of the overall process rather than being as comprehensive in its financial implications as the statement of adjustments. Securing financing for the buyer is generally the responsibility of the buyer's lawyer or financial institution, and representing the buyer in all transactions is outside the purview of the seller's lawyer, who is primarily concerned with the seller's interests.