Humber/Ontario Real Estate Course 2 Exam Practice

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Prepare for the Ontario Real Estate Course 2 Exam with our comprehensive practice tests. Study with flashcards, multiple choice questions, and detailed explanations to ensure you are ready for exam day!

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Which of the following is generally considered a fixed cost in property ownership?

  1. Repairs and maintenance

  2. Property insurance

  3. Property taxes

  4. Utilities

  5. Gardening services

  6. Cleaning services

The correct answer is: Property taxes

Property taxes are generally considered a fixed cost in property ownership because they are set by the municipal government and remain the same regardless of the property's condition or usage. Property taxes are based on the assessed value of the property and are typically paid annually. In comparison, repairs and maintenance, gardening services, and cleaning services are variable costs that can fluctuate based on the property's condition and the owner's preferences. Property insurance, although a necessary expense, is not considered a fixed cost as the premiums can vary based on the coverage amount and the insurance provider. Utilities such as water, electricity, and gas bills are also variable costs that can change based on usage.

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