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Humber Real Estate - Course 2, Module 5, The Financial Aspects of the Buying and Selling Process and the Role of Third-Party Professionals 2023 Questions and Answers$11.49
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Humber Real Estate - Course 2, Module 5, The Financial Aspects of the Buying and Selling Process and the Role of Third-Party Professionals 2023 Questions and Answers
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Course
Humber Real Estate
Institution
Humber Real Estate
Humber Real Estate - Course 2, Module 5, The Financial Aspects of the Buying and Selling Process and the Role of Third-Party Professionals 2023 Questions and Answers
- Home stager
- Lender (i.e. a cost associated with discharging a mortgage early)
- Surveyor
- Lawyer
- HST or capital gains t...
Humber Real Estate - Course 2, Module 5, The Financial
Aspects of the Buying and Selling Process and the Role of
Third-Party Professionals 2023 Questions and Answers
- Home stager
- Lender (i.e. a cost associated with discharging a mortgage early)
- Surveyor
- Lawyer
- HST or capital gains tax
- Moving expenses
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
What tasks will a lawyer complete when working with a seller?
Lawyer fees, brokerage fees or commissions (if applicable), and moving costs.
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.
When is capital gains tax applicable?
On the seller's next income tax return.
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.
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.
Define 'Adjustments' when referring to the sale of a property.
Unmetered utility costs and property tax.
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
, 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.
What does an inspection report by a Property Inspector cover?
- The buyer pays
- The lender requires it
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.
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.
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.
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.
What are the criteria to quality for the First-time buyers refund / tax credit?
Up to $4,000
How much money can buyers of new homes claim for a first-time buyer refund?
The buyer
According to the Vendors and Purchasers Act, who is responsible for the costs that are
incurred on the day of closing?
The lender took physical possession of the property. The property reverted to the
original owner on a specified date, assuming the loan was paid with interest.
Otherwise, the property was lost forever due to lack of payments on agreed
dates.
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