Humber/Ontario Real Estate Course 3 Exam Practice

When finalizing a real estate deal, who is typically responsible for costs linked to any seller financed mortgages?

1. A:The buyer covers deed preparation costs.

2. B:The seller pays the land transfer tax.

3. C:The buyer handles costs linked to mortgages taken back by the seller.

4. D:The seller handles costs linked to mortgages taken back.

5. E:The buyer and seller share the deed preparation cost.

6. F:Neither buyer nor seller is responsible.

The correct answer is: C:The buyer handles costs linked to mortgages taken back by the seller.

The buyer is typically responsible for costs linked to mortgages taken back by the seller. This is because the buyer is the one taking on the mortgage and obtaining the property. Option A is incorrect because deed preparation costs are typically covered by the seller. Option B is incorrect as the land transfer tax is usually paid by the buyer. Option D is incorrect as the seller would not handle costs for a seller financed mortgage since they are providing the financing. Option E is incorrect as the buyer is responsible for these costs. Option F is incorrect as someone must be responsible for the costs, typically the buyer.