BC Real Estate Trading Services Licensing Exam Practice · Question
A Contract of Purchase and Sale for a condo in Kelowna has a completion date of November 15th, 2023, and a possession date of November 16th, 2023. Property taxes for the year are $2,800. The seller has paid the full year's property taxes. How will the property taxes be adjusted on the Statement of Adjustments?
Adjustments are typically made as of the possession date. The buyer will owe the seller for the portion of the taxes for which the seller has pre-paid but will
Start free practice for BC Real Estate Trading Services Licensing Exam Practice
242 questions · no signup required · 40 free questions per day
Question: A Contract of Purchase and Sale for a condo in Kelowna has a completion date of November 15th, 2023, and a possession date of November 16th, 2023. Property taxes for the year are $2,800. The seller has paid the full year's property taxes. How will the property taxes be adjusted on the Statement of Adjustments?
Answer options:
- The buyer will credit the seller for the period from November 1st to December 31st.
- The seller will credit the buyer for the period from November 16th to December 31st. ✅ The buyer will credit the seller for the period from November 16th to December 31st.
- The property taxes will not be adjusted as they are paid annually.
Correct answer: The buyer will credit the seller for the period from November 16th to December 31st.
Explanation: Adjustments are typically made as of the possession date. The buyer will owe the seller for the portion of the taxes for which the seller has pre-paid but will not occupy the property, which is from the possession date (November 16th) to the end of the year (December 31st).
Start free practice for BC Real Estate Trading Services Licensing Exam Practice
242 questions · no signup required · 40 free questions per day
More about BC Real Estate Trading Services Licensing Exam Practice
Related Questions
- A developer, Grandview Developments Ltd., plans to build a new condominium project in Kelowna. They register a
- Michael, a real estate licensee, is assisting his client Jane in purchasing a commercial property at 123 Main
- A buyer, David, has entered into a Contract of Purchase and Sale for a vacant lot in Tofino. David's lawyer di
- Maria is purchasing a unit in a newly constructed strata building in Squamish. Her real estate licensee, Ken,
- A B.C. lawyer, acting on forged documents, fraudulently transferred a property located in Victoria from its ri
- A buyer is looking to purchase a home for $800,000 in Vancouver. They have saved a down payment of $100,000. W
More for BC Real Estate Trading Services Licensing Exam Practice candidates
Question explanations
- A developer, Grandview Developments Ltd., plans to build a new condominium project in Kelowna. They register a
- Michael, a real estate licensee, is assisting his client Jane in purchasing a commercial property at 123 Main
- A buyer, David, has entered into a Contract of Purchase and Sale for a vacant lot in Tofino. David's lawyer di
- Maria is purchasing a unit in a newly constructed strata building in Squamish. Her real estate licensee, Ken,
Ready to practice?
Free, no signup required. Build a wrong-question list as you go.
Start Free BC Real Estate Trading Services Licensing Exam Practice Practice →Related courses
Other Canadian certifications candidates often prepare for alongside this one.