Humber/Ontario Real Estate Course 4 Exam Practice

In a property transaction, what tasks are typically carried out by the seller's lawyer?

1. Completing a title search

2. Arranging title insurance

3. Preparing a draft deed

4. Preparing the statement of adjustments

5. Conducting a final walk-through

6. Negotiating closing costs

The correct answer is: Preparing the statement of adjustments

Preparing the statement of adjustments is a critical task typically carried out by the seller's lawyer in a property transaction because this document outlines the financial aspects related to the closing of the property. It details various costs and adjustments that need to be settled between the buyer and seller before the transaction is finalized. This includes property taxes, utilities, and other relevant costs that may need to be prorated or adjusted at closing. The statement of adjustments ensures clarity on what amounts are owed or credited, facilitating a smooth financial transition in the property transfer process. It is essential for ensuring that both parties understand their obligations and any outstanding payments that need to be made or received at closing. While other tasks like completing a title search, arranging title insurance, and preparing a draft deed are indeed important in the real estate transaction process, they typically fall under the responsibilities of the buyer's lawyer or are part of the general process that does not specifically focus on the seller's interests. Other tasks like conducting a final walk-through or negotiating closing costs are usually handled in collaboration between both parties and their respective legal or real estate representatives, rather than being solely the responsibility of the seller's lawyer.