Humber/Ontario Real Estate Course 1 Exam Practice

Which of the following statements is NOT correct regarding the process of transferring property ownership?

1. The closing date is the date on which the transfer of ownership occurs.

2. A salesperson must clearly identify two important dates in an agreement: the completion date (the date that the title search is done) and the closing date (the date that the sale closes).

3. A mortgage being registered under the Land Titles system is legally referred to as a 'charge.'

4. The change of ownership under Land Titles is typically referred to as a 'transfer.'

5. The closing date is the date on which the final payment is made.

6. The completion date and closing date are different events.

The correct answer is: A salesperson must clearly identify two important dates in an agreement: the completion date (the date that the title search is done) and the closing date (the date that the sale closes).

The reason why option B is not correct regarding the process of transferring property ownership is that the completion date and closing date are not separate events as stated in the option. In real estate transactions, the completion date and closing date actually refer to the same event, which is the date on which the transfer of ownership occurs and the sale is finalized. Therefore, the completion date (the date when the title search is done) and the closing date (the date that the sale closes) are not two distinct dates, but rather two terms used interchangeably to refer to the same event in the process of transferring property ownership.