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.

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What happens when Seller Amari discharges the existing mortgage at closing?

  1. The existing mortgage is paid off by the seller prior to the closing funds

  2. The existing mortgage is typically discharged after closing

  3. The responsibility of paying off the mortgage lies with the buyer

  4. A special clause must be added to cover the mortgage

  5. The seller has no responsibility for the mortgage after closing

  6. The existing mortgage is never discharged

The correct answer is: The existing mortgage is typically discharged after closing

When Seller Amari discharges the existing mortgage at closing, the existing mortgage is typically discharged after closing. This means that the seller will settle the mortgage debt either on or immediately after the closing date, ensuring that the property is free and clear of any encumbrances. This is a standard practice in real estate transactions to ensure a smooth transfer of ownership from the seller to the buyer without any outstanding liabilities on the property. Options A, C, D, E, and F are incorrect because they do not accurately reflect the standard procedure when a seller discharges an existing mortgage at closing. The responsibility of paying off the mortgage rests with the seller, and it is typically done either on or after the closing date to ensure a proper transfer of ownership.

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