Humber/Ontario Real Estate Course 4 Exam Practice

If the electrical meter is read on the completion day and the seller receives a final bill for $49.30, what adjustment is required at closing?

1. A credit for the buyer covering 14 days.

2. A credit of $23.19 for the seller.

3. A credit of $25.19 for the buyer.

4. No adjustment is necessary.

The correct answer is: No adjustment is necessary.

In this scenario, when the electrical meter is read on the completion day and the seller receives a final bill for $49.30, the critical aspect is to determine if any adjustments are necessary at closing based on the billing period and the payment responsibilities of the seller and buyer. If the seller has already paid for the electricity used up until the completion day, then they are not liable for any additional charges after that date. Since the final bill reflects an amount that the seller is responsible for until the date of completion, if they have paid it prior, there would be no further adjustments needed because the seller has already accounted for the usage. Thus, the conclusion is that no adjustment is required at closing since the seller's financial responsibility for the utility consumption has been fulfilled with the final bill. The funds covered by the bill will encompass all usage up until the closing date, which implies that the buyer is not under any obligation to pay for the seller's previous consumption.