Humber/Ontario Real Estate Course 1 Exam Practice 2025 - Free Real Estate Course 1 Practice Questions and Study Guide

The statement that the ultimate responsibility for associated taxes rests with the buyer is incorrect in the context of non-resident sellers. Typically, the responsibility for ensuring that taxes owed by the seller are settled falls on the seller, particularly if they are non-resident. In such situations, the legislation is designed to protect buyers from unexpected tax liabilities arising from the seller's lack of tax compliance.

When dealing with a non-resident seller, it is crucial to ensure that the seller is in good standing with tax obligations to prevent tax issues from impacting the buyer after the transaction gets finalized. The implications of non-residency mean that sellers may have different obligations regarding tax certificates, and it is standard practice that the necessary documentation, such as tax clearance, should be provided by the seller to confirm compliance.

Overall, the buyer does have responsibilities during the transaction, particularly concerning various due diligence aspects, but the primary liability regarding taxes, especially when a non-resident is involved, generally does not rest solely with them. The seller’s responsibilities include providing necessary documentation and ensuring that any taxes are resolved accordingly.