Humber/Ontario Real Estate Course 4 Exam Practice

What includes the fees for title registration documents?

1. Home renovation costs

2. Inspection fees

3. Closing costs for a buyer

4. Real estate agent's commission

The correct answer is: Closing costs for a buyer

The correct answer is that closing costs for a buyer include the fees for title registration documents. When a property transaction occurs, various expenses are incurred during the closing process, and these are collectively known as closing costs. Title registration is an essential part of this process, ensuring that the buyer receives legal ownership of the property. The fees associated with title registration cover the costs of recording the deed and obtaining a title search, among other things. This is significant because closing costs generally encompass various expenses that a buyer must be prepared for, including loan fees, appraisal fees, and indeed, the fees for title registration. In contrast, the other options do not relate directly to these registration fees. Home renovation costs are related to improvements made after purchasing a home, inspection fees are for assessing the condition of a property prior to purchase, and a real estate agent's commission pertains to the payment made to an agent for their services, rather than the closing costs incurred during the transaction itself.