Humber/Ontario Real Estate Course 3 Exam Practice

What is generally required in the process of closing a property deal?

1. Adjusting the sale term length

2. Authority confirmation for both parties

3. Compliance with all municipal regulations

4. Finalizing the mortgage appraisal

5. Inspection of the final building structure

6. Payment settlement and document exchange

The correct answer is: Payment settlement and document exchange

The process of closing a property deal typically culminates in the payment settlement and exchange of crucial documents. This step is essential as it ensures that the buyer officially acquires ownership of the property and that the seller receives the agreed-upon payment. During this closing phase, various documents such as the deed, settlement statement, and title insurance are signed and exchanged, solidifying the transaction and transferring legal ownership. Factors like adjusting sale term lengths, confirming authority, ensuring compliance with regulations, finalizing mortgage appraisals, or inspecting the building structure may be critical components of the real estate process, but they do not occur during the closing stage. Instead, these elements are generally addressed earlier in the transaction timeline. Only the settlement of payment and formal exchange of documents finalize the deal and tie together all aspects of the transaction.