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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Which of the following is NOT an advantage of a seller take back mortgage?

  1. The buyer can save fees typically associated with arranging mortgage financing with traditional lenders.

  2. The possibility of a seller take back mortgage can improve the saleability of a property, especially in a slow market or when trying to sell a unique property.

  3. The seller who offers a seller take back mortgage will always be able to sell that mortgage at its face value.

  4. The seller can potentially attract more buyers by offering more flexible mortgage terms.

  5. The buyer can negotiate more favorable interest rates and terms compared to traditional lenders.

  6. The seller can defer capital gains tax.

The correct answer is: The seller who offers a seller take back mortgage will always be able to sell that mortgage at its face value.

In the context of a seller take back mortgage, option C is not an advantage. It states that the seller who offers a seller take back mortgage will always be able to sell that mortgage at its face value. This statement is not necessarily true because the seller may face challenges when trying to sell the mortgage, such as finding a buyer willing to purchase the mortgage at its face value. On the other hand, options A, B, D, E, and F all highlight advantages of a seller take back mortgage. These advantages include saving fees associated with traditional mortgage financing, improving property saleability, attracting more buyers with flexible terms, negotiating favorable interest rates and terms, and deferring capital gains tax. These benefits make seller take back mortgages an attractive option for both buyers and sellers in certain real estate transactions.

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