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

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, elec