Humber/Ontario Real Estate Course 1 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 1 Exam with our comprehensive quiz. Test your understanding with multiple choice questions and detailed explanations. Build confidence and knowledge for a successful exam experience!

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Who is primarily responsible for taxes in transactions involving non-resident sellers?

Buyer's lawyer
Minister of National Revenue
Buyer's agent
Seller
Local tax authority
Notary public

The correct answer is: Seller

In transactions involving non-resident sellers, the seller is primarily responsible for handling taxes. This responsibility typically includes ensuring that any applicable taxes, such as non-resident withholding taxes, are properly accounted for and paid. Non-resident withholding taxes are taxes that non-residents must pay on certain types of income earned in Canada, including the sale of real estate. Therefore, it is important for the seller to be aware of and fulfill their tax obligations to avoid any complications or penalties related to the transaction. The other options are incorrect: - The buyer's lawyer, buyer's agent, and notary public do not have the primary responsibility for handling taxes in transactions involving non-resident sellers. - The Minister of National Revenue is responsible for the administration of Canada's tax laws but is not primarily responsible for taxes in transactions involving non-resident sellers. - The local tax authority is also not primarily responsible for taxes in transactions involving non-resident sellers.