Humber/Ontario Real Estate Course 2 Exam Practice

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Prepare for the Ontario Real Estate Exam with our comprehensive Humber Course 2 Exam Practice quiz. Engage with multiple choice questions and detailed explanations, designed to help you excel.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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If Buyer Marshall offers $350,000 for Seller Lee's property and includes a $25,000 deposit with a seller take-back mortgage of $220,000, what is the amount indicated on the "pay the balance as follows" line in Schedule A?

$105,000
$225,000
$325,000
$105,900
$350,000
$110,000

The correct answer is: $105,000

In this scenario, the correct answer is $105,000. To understand why, we need to break down the elements of the offer. Buyer Marshall's offer is $350,000 for Seller Lee's property. This includes a $25,000 deposit. Additionally, there is a seller take-back mortgage of $220,000. To find the amount indicated on the "pay the balance as follows" line in Schedule A, we need to subtract the deposit and the seller take-back mortgage from the total offer price: $350,000 (total offer price) - $25,000 (deposit) - $220,000 (seller take-back mortgage) = $105,000 Therefore, the correct amount indicated on the "pay the balance as follows" line in Schedule A is $105,000. The other options are incorrect because they do not accurately calculate the remaining balance that the Buyer needs to pay after deducting the deposit and seller take-back mortgage from the total offer price.