
🏡 How Much Do You Really Know About Buying or Selling a Home in Ontario?
Take our quick 10-question real estate quiz and find out if you’re ready to navigate the Ontario market like a pro. Whether you’re buying your first home, selling your current one, or just curious about the rules, this quiz will test your knowledge and teach you something new.
✅ Question 1:
True or False: The deposit on a home purchase in Ontario is refundable if the buyer changes their mind.
Answer: ❌ False
The deposit is only refundable if the buyer backs out within valid conditions (like financing or inspection). Once those conditions are waived or fulfilled, the deposit becomes non-refundable.
✅ Question 2:
How much is the Ontario Land Transfer Tax on a $600,000 home?
A) $4,475
B) $8,475
C) $16,475
D) There is no land transfer tax in Ontario
Answer: ✅ B) $8,475
Ontario uses a tiered formula to calculate land transfer tax. First-time buyers may qualify for a rebate of up to $4,000.
✅ Question 3 (UPDATED):
Which of the following defects must a seller in Ontario legally disclose?
A) A leak in the roof that has been fixed
B) If a house is believed to be haunted
C) A known hidden defect that could make the home unsafe
D) All of the above
Answer: ✅ C) A known hidden defect that could make the home unsafe
Sellers must disclose latent defects that are not easily visible and could render the home unsafe or unfit for habitation — even if they’ve been repaired.
✅ Question 4:
What’s the minimum down payment required to buy a $700,000 home in Ontario?
A) 5%
B) 10%
C) $45,000
D) $25,000
Answer: ✅ C) $45,000
For homes over $500,000, you need 5% on the first $500K and 10% on the remaining amount. That’s $25,000 + $20,000 = $45,000.
✅ Question 5:
True or False: The buyer pays the commission to the real estate agents.
Answer: ❌ False
In most Ontario transactions, the seller pays the full commission, which is then split between the listing and buyer’s agents.
✅ Question 6:
Which of the following is not a valid condition to include in an Ontario purchase offer?
A) Conditional on financing
B) Conditional on buyer’s parents approving the home
C) Conditional on home inspection
D) Conditional on sale of buyer’s property
Answer: ❌ B
While nearly anything can be written into an offer, unusual or subjective conditions like parental approval are not typically accepted or enforceable.
✅ Question 7:
What is RECO’s role in a real estate transaction?
A) They set mortgage rates
B) They regulate real estate agents
C) They appraise properties
D) They provide legal advice to buyers
Answer: ✅ B) They regulate real estate agents
The Real Estate Council of Ontario (RECO) enforces rules and standards to protect consumers in real estate transactions.
✅ Question 8:
True or False: You can buy a home in Ontario without using a real estate lawyer.
Answer: ❌ False
A lawyer is legally required to handle the closing, register the title, and ensure proper disbursement of funds.
✅ Question 9:
What is the Vacant Unit Tax in the City of Ottawa?
A) 1% of assessed value
B) $1,000 flat rate
C) Only applies to condos
D) There is no such tax
Answer: ✅ A) 1% of assessed value
Ottawa’s Vacant Unit Tax applies to residential properties left unoccupied for more than 184 days in a calendar year.
✅ Question 10:
True or False: Buyers in Ontario must pass a mortgage stress test, even with a fixed rate.
Answer: ✅ True
All buyers using federally regulated lenders must qualify at the greater of 5.25% or 2% above their contract rate.
📊 How Did You Do?
- 8–10 correct? You’ve got the knowledge — let’s talk strategy and next steps.
- 5–7 correct? You’re close! A quick chat can fill in the gaps.
- Less than 5? No problem — the Ontario market is complex, and that’s exactly why I’m here.
💬 Ready to make your move with confidence?
Whether you’re buying, selling, or just exploring, I’d be happy to help you navigate the market, answer your questions, and make informed decisions.
👉 Book a free consultation today or reach out anytime.