Ontario Real Estate Licensing Exam Practice · Question
When a real estate salesperson earns commission on a real estate transaction in Ontario, how is HST typically applied?
HST is typically charged on the real estate commission by the brokerage to the client. Real estate services, including commission earned by salespersons as part
Start free practice for Ontario Real Estate Licensing Exam Practice
363 questions · no signup required · 40 free questions per day
Question: When a real estate salesperson earns commission on a real estate transaction in Ontario, how is HST typically applied?
Answer options:
- The salesperson is exempt from charging HST on their commission ✅ HST is charged on the commission by the brokerage to the client
- HST is only charged if the commission exceeds a certain amount
- The client pays HST directly to the Canada Revenue Agency
Correct answer: HST is charged on the commission by the brokerage to the client
Explanation: HST is typically charged on the real estate commission by the brokerage to the client. Real estate services, including commission earned by salespersons as part of a brokerage, are considered a taxable supply under the Excise Tax Act.
Start free practice for Ontario Real Estate Licensing Exam Practice
363 questions · no signup required · 40 free questions per day
More about Ontario Real Estate Licensing Exam Practice
Related Questions
- A buyer is considering a mortgage product that allows them to prepay a portion of their principal at any time
- A commercial property in Toronto is sold for $2,000,000. The vendor is an HST registrant. What is the buyer's
- What is the primary purpose of registering a deed under the Registry Act in Ontario?
- What is the primary role of a 'title search' in a residential real estate transaction in Ontario?
- A seller accepts a conditional offer. Before the conditions are fulfilled, the seller receives a firm, higher
- Which of the following is a common encumbrance that would be registered on title and affect a property owner's
More for Ontario Real Estate Licensing Exam Practice candidates
Study guides
Question explanations
- A buyer is considering a mortgage product that allows them to prepay a portion of their principal at any time
- A commercial property in Toronto is sold for $2,000,000. The vendor is an HST registrant. What is the buyer's
- What is the primary purpose of registering a deed under the Registry Act in Ontario?
- What is the primary role of a 'title search' in a residential real estate transaction in Ontario?
Ready to practice?
Free, no signup required. Build a wrong-question list as you go.
Start Free Ontario Real Estate Licensing Exam Practice Practice →Related courses
Other Canadian certifications candidates often prepare for alongside this one.