Ace the Humber/Ontario Real Estate Course 4 Exam 2025 – Unlock Your Property Potential!

Question: 1 / 1255

What is the balance due on closing if Buyer Dudek submits an offer for $252,000 with a $10,000 deposit and arranges a $172,000 first mortgage?

$252,000

$242,000

To determine the balance due on closing when Buyer Dudek submits an offer for $252,000, we need to consider the total purchase price, the deposit made, and the mortgage arranged.

The total purchase price is $252,000. Buyer Dudek made a deposit of $10,000, which reduces the amount that needs to be paid at closing. After accounting for the deposit, the remaining balance would initially be calculated as:

$252,000 (purchase price) - $10,000 (deposit) = $242,000.

Additionally, Buyer Dudek has arranged for a first mortgage of $172,000. However, the mortgage would not adjust the balance due at closing directly; instead, it indicates the amount the buyer will finance. Therefore, at closing, Buyer Dudek still needs to pay the remaining amount after the deposit, confirming that the balance due at closing remains $242,000.

Considering these components, the correct amount that Buyer Dudek will have to pay at closing is $242,000.

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$70,000

Cannot be determined based on the facts provided

$172,000

$262,000

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