Humber/Ontario Real Estate Course 2 Exam Practice

When considering a seller take-back mortgage, which factor is NOT crucial?

1. Buyer's creditworthiness.

2. Seller's need for funds to close a subsequent transaction.

3. Fixtures excluded in the sale.

4. Potential sale of the mortgage and associated costs.

5. Buyer's employment history.

6. Current interest rates on the market.

The correct answer is: Fixtures excluded in the sale.

When considering a seller take-back mortgage, the factor that is NOT crucial is the fixtures excluded in the sale. Seller take-back mortgages involve the seller financing part of the purchase price instead of the buyer borrowing the entire amount from a traditional lender. The factors that are crucial in a seller take-back mortgage include: A. Buyer's creditworthiness - This is important in assessing the buyer's ability to repay the seller take-back mortgage as agreed. B. Seller's need for funds to close a subsequent transaction - This is crucial as it relates to the seller's financial situation and their need for liquidity to proceed with their own plans. D. Potential sale of the mortgage and associated costs - Sellers may choose to sell the mortgage to a third party for liquidity reasons, so understanding the potential sale and associated costs is essential. E. Buyer's employment history - This is crucial to evaluate the stability of the buyer's income and their ability to make mortgage payments on time. F. Current interest rates on the market - Monitoring interest rates is important as they can impact the terms of the seller take-back mortgage and its attractiveness to both parties involved. Therefore, the fixtures excluded in the sale are not a crucial factor to consider when dealing with a seller take-back mortgage.