Humber/Ontario Real Estate Course 3 Exam Practice

Which statement is correct about adjustments on the closing date?

1. The completion date is controlled by the buyer.

2. Adjustments always involve metered utilities.

3. Closing adjustments typically include taxes and home insurance.

4. The completion date is the seller’s responsibility.

5. Only the buyer’s solicitor can prepare adjustments.

6. Adjustments never involve property taxes.

The correct answer is: The completion date is controlled by the buyer.

The correct statement about adjustments on the closing date is that the completion date is controlled by the buyer. In a real estate transaction, the completion date is typically determined and negotiated by the buyer, reflecting when they will take possession of the property and complete the purchase process. This date is crucial as it affects various aspects like adjustments, moving timelines, and transfer of ownership. Sellers must comply with the completion date set by the buyer to ensure a smooth closing process. Option B is incorrect because adjustments can involve various items beyond just metered utilities, such as property taxes, prepaid expenses, condominium fees, etc. Option C is incorrect as closing adjustments commonly encompass a range of items, including property taxes, home insurance, utilities, and other relevant expenses. Option D is incorrect since the completion date is typically initiated and managed by the buyer, not solely the seller. Option E is incorrect because both the buyer's and seller's solicitors can be involved in preparing adjustments, ensuring fairness and accuracy for both parties. Option F is incorrect as property taxes are commonly subject to adjustments on the closing date, ensuring the appropriate allocation of costs between the buyer and the seller.