Humber/Ontario Real Estate Course 2 Exam Practice

Disable ads (and more) with a membership for a one time $2.99 payment

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.

Start Multiple Choice Practice Test
Start Flash Cards

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!

Practice this question and more.

What clause should Salesperson Chou include regarding an existing, assumable first mortgage and a seller take-back mortgage?

  1. A prepayment clause for the seller take-back mortgage.

  2. A postponement clause related to the first mortgage.

  3. A renewal clause for the first mortgage.

  4. Both a postponement clause and a renewal clause for the seller take-back mortgage.

  5. A demand clause for immediate payment.

  6. A default clause for non-payment.

The correct answer is: A postponement clause related to the first mortgage.

Salesperson Chou should include a postponement clause related to the first mortgage when dealing with an existing, assumable first mortgage and a seller take-back mortgage. This clause helps clarify the priority of these two types of mortgages in the event of default or foreclosure, ensuring that the first mortgage takes precedence over the seller take-back mortgage. This can protect the interests of both the seller and the buyer in the transaction. The other options are not directly related to the situation described in the question: - A prepayment clause for the seller take-back mortgage may not be as crucial as a postponement clause when dealing with multiple mortgages. - A renewal clause for the first mortgage is not pertinent to the scenario described. - Both a postponement clause and a renewal clause for the seller take-back mortgage are not necessary in this context. - A demand clause for immediate payment and a default clause for non-payment are not relevant to establishing the hierarchy of mortgages in the event of default or foreclosure.

More Questions Like This