Final answer:
Common seller expenses during the closing of a real estate transaction in Ontario include the mortgage discharge penalty, real estate commission plus HST, legal fees, and costs for fixing issues requested by the buyer's lawyer. Moving costs are not typically considered a closing expense.
Step-by-step explanation:
During the closing of a real estate transaction in Ontario, Canada, there are several expenses that are commonly incurred by a seller. These include:
- Mortgage discharge penalty: If a seller has a mortgage and they pay it off early due to the sale of the home, they may face a penalty from their lender.
- Real estate commission plus HST: Sellers are typically responsible for paying the commission to the real estate agents involved in the transaction, which is subject to the Harmonized Sales Tax (HST) in Ontario.
- Legal fees: Sellers will incur legal fees for the services provided by a lawyer, including drafting and reviewing documents, closing the sale, and addressing any legal issues that may arise.
- Any costs for fixing issues as requisitioned by the buyer's lawyer: If the buyer requests repairs or adjustments based on the conditions of the sale, the seller may have to cover these costs.
Moving costs, while a common expense for someone selling a home, are not usually considered part of the closing costs but rather post-closing personal expenses.
Therefore, the expenses that are commonly incurred by a seller during the closing of a real estate transaction in Ontario, Canada, are Mortgage discharge penalty, Real estate commission plus HST, Legal fees, and Any costs for fixing issues as requisitioned by the buyer's lawyer. The correct answer to the question is option B) 2, 3, and 4.