Humber/Ontario Real Estate Course 4 Exam Practice

Which of the following would NOT typically be a closing cost associated with purchasing a residential resale property?

1. Adjustment for Property Taxes

2. Title Search and Document Fees

3. Harmonized Sales Tax

4. Land Transfer Tax

5. Notary Fees

6. Inspection Fees

The correct answer is: Harmonized Sales Tax

The choice of Harmonized Sales Tax as an answer highlights an important aspect of closing costs in residential real estate transactions. Generally, closing costs are expenses paid by buyers and sellers during the transaction process, and they often include various fees directly associated with the transfer of property ownership. In Ontario, when purchasing a residential resale property, closing costs typically include items such as adjustment for property taxes, title search and document fees, land transfer tax, notary fees, and inspection fees. These costs are standard and are incurred as part of the property transaction. Harmonized Sales Tax (HST), however, does not apply to the purchase of used residential properties. It might be applicable in transactions involving new homes or certain goods and services, but since a resale property does not constitute new construction, HST would not typically be included as a closing cost in this context. This distinguishes it from the other options listed, which are standard fees encountered in the closing process of purchasing a residential resale property.