mock 1 Flashcards
Which of the following is NOT an “interest” in a negotiation, but a “position”?
The fear of carrying two loans at the same time
The need to close the deal by Jan 12th
The need to secure a house to live in prior to work commencing
The desire to ensure that the wife receives more of the estate than the husband
The need to close the deal by Jan 12th
After the Order NISI is granted to a petitioner and the respondent borrower fails to pay the amount owed by expiry of the redemption period, the petitioner may apply for:
A statutory priceity over the property
All charges, except for the petitioner’s, to be wiped off the title
A certificate of pending litigation
A judicial sale
A judicial sale
Which of the following forms of discipline is not open to the disciplinary committee of the mortgage brokerage professional association?
Suspension of a registration under the Mortgage Brokers Act.
A reprimand.
Suspension of membership privileges.
The cost of the hearing.
Suspension of a registration under the Mortgage Brokers Act.
Alomar and Carter Development Co. has recently won the contract to build a new baseball stadium in Kelowna for the Little League World Series. The stadium is to be built over the next three years and will be able to hold over 7,000 fans. The company has received a construction loan in the amount of $2,500,000 written at the rate of 17% per annum, compounded monthly, with a 3-year term, a 25 year amortization period and annual interest only payments. What is the amount of annual interest only payments?
$466,586.30
$459,729.33
$425,000.00
$35,416.67
$459,729.33
Which of the following actions would constitute a trespass by Vivian?
Vivian throws her empty coffee cup onto Laura’s property
Vivian does door to door sales and walks onto Laura’s property to reach her front door
Vivian hits her head while rollerblading – strangers pull her over onto land with a “No Trespassing” sign
Vivian rushes to “Shoe World” store just at the door is being locked for the day and convinces the store owner to let her in for last minute shopping
Vivian throws her empty coffee cup onto Laura’s property
Tanner has put his house up for sale for $260,000. Jerome has made an offer consisting of $95,000 cash and a mortgage for balance. The mortgage has a 15 year amortization period with monthly payments over a 5 year term. The rate is J2=6%. The market rate for similar mortgages is J2=7.5%. What is the market value of Jerome’s offer?
$251,582.17
$251,483.01
$251,016.87
$245,547.47
$251,016.87
A Court has the power to re-open a mortgage transaction where, having regard to the risk and to all the circumstances, it is of the opinion that the cost of borrowing is excessive or harsh and unconscionable. In which one of the following statutes is this power contained?
Interest Act
Mortgage Brokers Act
Real Estate Services Act
Consumer Protection Act
Consumer Protection Act
Where a borrower believes that the amount of interest being charged is excessive, under which statute might relief be granted?
the Interest Act
the Business Practices and Consumer Protection Act
the Land Titles Act
all of the above
the Business Practices and Consumer Protection Act
Which of the following is used in the calculation of the maximum allowable mortgage loan under the loan-to-value constraint?
purchase price
market value
lending value
purchase costs
lending value
A reverse annuity mortgage has been created to improve Albert Montague’s income. Albert receives $1,456 per month based on security of a $255,000 home. The outstanding balance on the loan, which is written at j2 = 8%, cannot exceed 65% of the market value of the home at the time the loan was written. The contractual term of this loan:
must not exceed 85 months
must not exceed 107 months
must not exceed 113 months
cannot be determined from the information given
must not exceed 85 months
Which of the following statements is TRUE regarding the liability of an occupier?
- an occupier must object to habitual trespassers in order to prevent them from gaining an implied license of law
- an occupier of land owes no duty of care under the common law to trespassers and may deal with them as he or she chooses
- the duty of care owed to an occupier or land of common law to children is somewhat less than invitees
- an invitee is owed a lesser standard of care than to a licensee
- an occupier must object to habitual trespassers in order to prevent them from gaining an implied license of law
When a firm or representative selects a relatively small target market, and then focuses on the needs of this target market, this concept is known as:
Niche Marketing
Marketing Mix
Promotional Mix
Marketing Concept
Niche Marketing
What best defines a Balloon Payment?
Payment of interest over and above regular payments only at the end of the term
Payment of interest over and above regular payments during or at the end of the term
Payment of principal over and above regular payments during or at the end of the term
Payment of principal over and above regular payments only at the end of the term
Payment of principal over and above regular payments during or at the end of the term
A limitation or restriction placed upon the use of one person’s land for the benefit of another is called:
remuneration.
a zoning bylaw.
a restrictive covenant.
an order absolute of foreclosure.
a restrictive covenant.
Prepayment in a mortgage refers to:
the right to demand full repayment of the outstanding principal if the payments fall into arrears.
the right to the borrower to pay off all (or sum) of the outstanding balance during the term of the mortgage
the lender’s right to demand full payment of the outstanding balance at the end of the term of a partially amortized mortgage.
the payment of a finder’s fee to a mortgage broker (as compensation for arranging a mortgage loan) which is made prior to the advancing of mortgage funds
the right to the borrower to pay off all (or sum) of the outstanding balance during the term of the mortgage
the lender’s right to demand full payment of the
Two identical houses located next to one another in the same neighborhood sell within one week of each other. Ms. Brown sells hers for $112,000, while Mr. Fisher is only able to sell his for $100,000. Which of the following could account for the difference in selling price?
The listing brokerage representing Ms. Brown spent an extraordinary amount of money on advertising her property.
Mr. Fisher supplied a vendor take-back mortgage at 9% while the current market rates were 12%.
Ms. Brown was promoted to a new position in Edmonton and her expertise was required immediately.
All of the above factors could account for the difference in selling price.
The listing brokerage representing Ms. Brown spent an extraordinary amount of money on advertising her property.
Which of the following scenarios represents a method for using a manufactured home itself as security for purchase price?
A) Mike transferred ownership of his manufactured home to Paul, who then gave a security agreement on the home in favor of Mike in exchange for part of the purchase price
B) Alex borrowed money from his sister-in-law in order to pay for his manufactured home. In exchange, Alex gave a security agreement on the home in favor of his sister-in-law
C) Ivan purchased a manufactured home from Joanne under the condition that he will make biweekly payments to her for the next 3 years, at which time Joanne will transfer legal ownership to him
A & B only
A & C only
B & C only
all the above
all the above
“Reproduction cost” is best defined as:
the current construction cost of a building which would provide the same utility as the subject property.
the current cost of moving the building to a site where the building would represent the highest and best use of that site.
the current cost of constructing an exact replica of the subject property.
the original cost of construction, adjusted for inflation.
the current cost of constructing an exact replica of the subject property.
An invitation to treat is:
a request for offers.
a legal offer.
a request for information.
all of the above.
a request for offers.
The book value of an asset can be best defined as:
the purchase price of that asset less any depreciation taken to date.
the price for which a similar asset could currently be purchased in the market.
the price for which that asset could be sold.
a value which is subjectively arrived at by an appraiser.
the purchase price of that asset less any depreciation taken to date.
Which of the following statements regarding mortgagees is FALSE?
A mortgagee may require the addition of a guarantor to provide a separate personal covenant as a third party in addition to the borrower’s personal covenant to pay.
Where the property secured is a condominium, a mortgagee may require the borrower to grant to the mortgagee the right to vote at meetings of the strata corporation on various matters affecting the security of the mortgage.
Although a number of remedies are usually available to a mortgagee in the event of borrower default, the lender usually has complete discretion in deciding the most suitable remedy to use in the circumstances.
Once the mortgage terms have been agreed to by the mortgagor and the mortgagee, the mortgagee is bound to advance the total amount of the funds when requested by the borrower, regardless of the terms of the mortgage.
Once the mortgage terms have been agreed to by the mortgagor and the mortgagee, the mortgagee is bound to advance the total amount of the funds when requested by the borrower, regardless of the terms of the mortgage.
You received a mortgage for a face value of $175,000, at J2=6% with a 25 year amortization period and 5 year term. Payments are to be made monthly in the amount of $1,119.67 with an outstanding balance at the end of the term of $157,213.65. A brokerage fee of $3,000 and an appraisal fee of $750 were deducted from the face value. What is the cost of funds advanced to the borrower, expressed as a nominal rate with semi-annual compounding?
i = 6.5398%
i = 6.8510%
i = 6.9684%
i = 6.7552%
i = 6.5398%
Which one of the following statements about the revocation of an offer is TRUE?
If an offer has a specified time of expiry, it cannot be revoked prior to that time.
Unless consideration is paid to keep an offer open for a specified time, revocation can be made at any time prior to the acceptance.
Revocation can be made prior to or after acceptance
The method of revocation must be exactly the same as the method used in the offer
Unless consideration is paid to keep an offer open for a specified time, revocation can be made at any time prior to the acceptance.
Which of the following is “Curable Functional” depreciation in a building?
Building style with an emphasis on low ceilings
Decaying foundation
Old wallpaper in the master bedroom
Brass fixtures in the bathroom
Brass fixtures in the bathroom
Which British Columbia Act regulates the way private sector organizations collect, use, keep secure, and disclose personal information?
1.
Private Information and Disclosure Act
Private Sector Protection Act
Personal Information Protection Act
Privacy Collection Act
Personal Information Protection Act
Which of the following statements regarding lending value and loan-to-value ratio are TRUE?
A. Lending value is a long term conservative estimate of the value of the interest in land pledged as a security
B. Lending value is an estimate of the mortgage loan a purchaser will be able to obtain
C. The maximum loan to value ratio is set by statue as 80% for federally chartered financial institutions unless the mortgage is insured
D. A loan to value ratio that is higher than the competitor’s will drive lending activity to other lenders
Only statements B and D are true
Only statements A and C are true
Only statements A, C and D are true
Only statements A, B and D are true
Only statements A and C are true
Roberto makes an offer of $546,000 to purchase a house in Vancouver, subject to obtaining an acceptable first mortgage. A lender, who has appraised the property at $536,000, requires a 75% loan-to-value ratio and a 32% gross debt service ratio. Net taxes are $6,365 per annum and Roberto has a gross income of $130,000 per year.
What is the maximum amount this lender will advance if the rate is J2 = 5.75%, the amortization period is 25 years, and payments are to be made monthly?
$469,783.37
$554,500.00
$409,500.00
$402,000.00
$402,000.00
You have a partially completed appraisal report that you need to fill in. The subject property has 4 bathrooms and an alarm system. The house next door is similar in all respects except for the number of bathrooms and alarm system. It sold for $226,500 and has 3 bathrooms and no alarm system. If the market value of a bathroom is $6,000 and the market value of an alarm system is $4,000, this comparable will have to be adjusted for bathrooms and an alarm system by:
-$6,000 and -$4,000 respectively.
+$4,000 and -$6,000 respectively.
+$6,000 and +$4,000 respectively.
$0 and +$4,000 respectively.
+$6,000 and +$4,000 respectively.
An insured mortgage loan:
is mortgage loan insurance protects the lender against loss resulting from fire or other events
is when the borrower is protected against loss of his property if he is unable to make the required mortgage payments
is where the lender is protected against loss should borrower default
an insured mortgage would always be under the terms of conventional mortgage
is where the lender is protected against loss should borrower default
Which one the following statements is TRUE with respect to the doctrine of stare decisis?
Issues that have already been described in the courts are predictable with absolute certainty
If a court in British Columbia has already decided a particular issue, and a subsequent court is faced with the same issue, the earlier decision should govern the subsequent decision
Decisions in Ontario court will have no relevance to courts in BC
The BC Court of Appeal is authoritative for judges in BC Courts
If a court in British Columbia has already decided a particular issue, and a subsequent court is faced with the same issue, the earlier decision should govern the subsequent decision
Which of the following does NOT relate to the topic of contract law?
depreciation
consideration
voidability
quantum meruit
depreciation
“Replacement Cost” is best described as:
the cost incurred when the building was erected
the amount of funds set aside for periodic replacement of building components that wear out more rapidly than the building itself
the cost of providing an exact replica of the subject property
the cost of providing a building which would represent the modern equivalent of the subject property
the cost of providing a building which would represent the modern equivalent of the subject property
When using the comparative method of appraisal, a “recent” sale would be:
A sale made within one month prior to the appraisal date.
A sale made within one business cycle prior to the appraisal date.
A sale made within 6 months prior to the appraisal date.
None of the above.
None of the above.
Elvin is purchasing Jeremy’s beach house in Tofino. Elvin is having a difficult time getting enough financing, so he decided to give Jeremy his boat, valued at $21,000. Furthermore, he will be assuming Jeremy’s existing mortgage on the property. Elvin just paid deposit of $30,000 directly to Jeremy. Which of the following items will appear EITHER debit or credit on Jeremy’s statement of adjustment?
Purchase price, property transfer tax, cash proceeds of sale
Real Estate licensee’s commission, sale price, conveyance fees
Deposit, assumption of the first mortgage, real estate commission
Boat trade, deposit, property transfer tax
Deposit, assumption of the first mortgage, real estate commission
Your Clients are going to pay $355,000 for a vacant lot which they feel they can sell at the end of 4 years for $465,000. What yield, expressed as a nominal rate with quarterly compounding will your clients earn on their investment? Assume that these are the only cash flows for their investments.
- 7669908947%
- 9808760535%
- 16603994493%
- 8052310506%
6.8052310506%
Which of the following statements regarding the comparative method of appraisal is TRUE?
The comparative method should be used if a property possesses latent value.
To apply the comparative method of appraisal, the appraiser estimates the market value of the subject property using as evidence the sale prices of similar properties which were sold at any time prior to the date of the appraisal.
The comparative method of appraisal is the most inexact approach for finding market value since cost and market value are not necessarily equal at any particular time.
The comparative method reflects market behavior and requires a minimum of subject opinion from the appraiser.
The comparative method reflects market behavior and requires a minimum of subject opinion from the appraiser.
The term stare decisis means:
on the surface.
let the former decision stand.
beyond the powers.
decisions must be equitable.
let the former decision stand.
The BC Supreme Court can hear appeals from:
BC Court of Appeal
Small Claims Court
Small Claims Tribunal
The Court of Queens Bench
Small Claims Court
The increased ease of accessing information raises concerns about the privacy of information. Which of the following regulates the way private sector organizations collect, use, keep secure and disclose personal information?
Personal Privacy Act (PPA)
Real Estate Services Act (RESA)
Public Information Privacy Act (PIPA)
Personal Information Protection Act (PIPA)
Personal Information Protection Act (PIPA)
Jordan is a fee simple owner to a large rural property in BC. He is considering one of the following actions:
A. Suing a pilot for trespass after he harmlessly flies his small plane over Jordan’s property
B. Building a dam in the bed of a large river that flows through his property
C. Draining part of the lake that borders his property
D. Extracting and selling coal found under his property
For which activities, if any, does Jordan legally have the right to perform?
Only A
Only B and C
Only C and D
Jordan may not legally perform any of the listed activities
Jordan may not legally perform any of the listed activities
In a negotiation, determining priorities is crucial because:
it is essential to get every issue exactly how you would like it
effective negotiations revolve around convincing, pressuring, and arguments
you must enter negotiation with a true understanding that you will have to give up something in order to get what you value
you will be better able to distribute the assets or positions
you must enter negotiation with a true understanding that you will have to give up something in order to get what you value
Given the following info calculate the cash proceeds:
Mortgage: $375,000
Deposit to brokerage: $60,000
$115,000, 1st mortgage to be assumed
$80,000 2nd mortgage has been arranged by Orson
Property Taxes $1500 not yet due at completion
Commission: 5% sale price
Legal fees: $1,100
Completion and possession May 15th
Not a leap year
$240,699.32
$240,695.21
$355,699.32
$242,199.32
$240,699.32
Which of the following correctly complete the phrase: “A mortgage is …”
A. a contract
B. evidence of a loan
C. security for a loan
D. required to be registered to be effective between the parties
Only A, B and D correctly complete the phrase.
Only A, B and C correctly complete the phrase.
Only A and C correctly complete the phrase.
All of the above correctly complete the phrase.
Only A, B and C correctly complete the phrase.
Which of the following is a defense for a nuisance causing a physical damage to the property?
the nuisance is the unavoidable result of a statutorily authorized activity
all reasonable care was taken to prevent nuisance
the activity causing the nuisance benefits the public
a reasonable use was made of the property
the nuisance is the unavoidable result of a statutorily authorized activity
The consumer price index is a good method to adjust sales prices to the level of values prevailing as of the date of appraisal:
where the comparable sales are deemed to be not recent.
where there are inadequate numbers of comparable sales within a particular neighborhood.
where the cost method of appraisal is deemed to be inappropriate.
under no circumstances.
under no circumstances.
If a negotiator recognizes that the other negotiator is using dirty tactics, he should:
Use a similar tactic in return to prove that you are the better negotiator
Ignore the tactics and proceed with the negotiation
Raise the issue with the other negotiator and argue against it if needed
Raise his or her demands in response to dirty tactics with similar behavior
Raise the issue with the other negotiator and argue against it if needed
Which of the following would appear as CREDITS on the buyer’s statement of adjustment?
Legal fees to discharge an existing mortgage, proceeds of new first mortgage, deposit paid into the brokerage’s trust account
Purchase price, seller’s share of taxes not yet due, legal fees for discharging an existing mortgage
Assumption of existing 1st mortgage, buyer’s share of already paid taxes, real estate commission
Agreement for sale, deposit paid into the brokerage’s trust account, seller’s share of taxes not yet due
Agreement for sale, deposit paid into the brokerage’s trust account, seller’s share of taxes not yet due
Real Estate values are influenced by externalities. Which of the following below could be used to determine this principle?
The market suffers a significant drop in world oil prices and because of this the supply of vacant office space increases in the city.
It’s being announced that a small residential area has been rezoned for a shopping center. The value of the houses in the residential area nearby will increase.
Because of unemployment, real estate prices decline.
All of the above
It’s being announced that a small residential area has been rezoned for a shopping center. The value of the houses in the residential area nearby will increase.
The 4 P’s of Marketing are:
Price, Position, Place, Product
People, Place, Promotion, Product
Also known as a Marketing concept
Also known as the Marketing mix
Also known as the Marketing mix
Which of the following statements regarding general accounting principals are TRUE?
A). the Materiality Principle holds that changes to accounting principles should only be made where the change results in providing more relevant and useful information to the user of the financial statement
B). The consistency principle is closely aligned to the cost principle because the best way to ensure objectivity in accounting transactions is to record the amount of consideration given up at the date of the transaction.
C). To conform with the cost principle, it is not appropriate to record the asset at what might be considered its fair market value; the asset should be recorded on the account as the amount that enterprise paid for the asset
D) the matching principle requires the accrual basis of accounting be used for maintaining records, that is, expenses are recognized when incurred, which is not necessarily when they are paid
only statements A and D are true
only statements C and D are true
only statements A and B ate true
only statements B and C are true
only statements C and D are true
Which of the following statements about Financial Institutions Commission (FICOM) is false.
FICOM is an agency of the provincial government that administers a number of statutes and regulations, including the Mortgage Brokers Act.
FICOM`s jurisdiction includes credit unions, insurance and trust companies.
FICOM is responsible for enforcing the consumer protections granted by the Business Practices and Consumer Protection Act.
Through the Registrar of Mortgage Brokers, FICOM governs the registration of mortgage brokers and submortgage brokers
FICOM is responsible for enforcing the consumer protections granted by the Business Practices and Consumer Protection Act.
An appraiser using the comparative method of the appraisal and estimating a single-family house can use sale prices of the following comparative properties EXCEPT:
Houses in different neighborhoods
Houses recently sold between relative parties
Houses with different square footage
Houses sold over three months ago
Houses recently sold between relative parties
Corey makes an offer of $556,000 to purchase a house in Vancouver, subject to obtaining an acceptable first mortgage. A lender, who has appraised the property at $550,000, requires 80% loan to value ratio and a 32% gross debt service ratio. Net taxes are $6,365 per annum and Corey has a gross income of $130,000 per year. What is the maximum amount that this lender will advance if the rate is J2= 5.75%, the amortization period is 25 years, and payments to be made monthly?
$469,783.37
$554,647.04
$440,000.00
$435,000.00
$440,000.00
Steve purchased $12,000 of new construction equipment and steel. At the end of its 5 year life it will sell for $1,000. What is the annual depreciation expense using the straight-line method?
$2,400
$2,200
$2,600
$55,000
$2,200
Which of the following is a characteristic of a fee simple estate?
It is held subject to the Crown’s land use regulations
It may not be expropriated by the Crown
It is a leasehold interest
The common law interests of other individuals cannot exist in conjunction with a fee simple interest
It is held subject to the Crown’s land use regulations
The “blend and extend” refinancing option:
involves renegotiating a first mortgage with the lender and making prepayment penalties.
requires one to obtain a second mortgage with a higher interest rate.
is illegal and not available in Canada.
typically allows a borrower to take advantage of a low interest rate on their current mortgage funds, as well as additional funds, while avoiding costly prepayment penalties.
typically allows a borrower to take advantage of a low interest rate on their current mortgage funds, as well as additional funds, while avoiding costly prepayment penalties.
In which of the following mortgages does payment increase on the regular basis?
reverse annuity mortgage
graduated payment mortgage
straight line principal reduction mortgage
interest accruing mortgage
graduated payment mortgage
Which of the following statement regarding a credit report is false?
In order to gain access to an applicant’s credit report, a company must follow the legislation put forth by the provincial and federal government.
No discussion with an applicant about their credit report is necessary because the credit report accurately represents the applicant’s credit history.
Information including such things as the date on which accounts were opened, whether payments were on time or late, and credit balances in terms of credit limits, are all reported.
A credit report is a record identifying an applicant’s habits regarding their financial commitments.
Information including such things as the date on which accounts were opened, whether payments were on time or late, and credit balances in terms of credit limits, are all reported.
You have a partially completed appraisal report that you need to fill in. The 2,500 square foot subject property has an alarm system. The house next door is similar in all respects except for the square footage and alarm system. The 2,700 square foot comparable sold for $236,500 and does not have an alarm system. If the market value of an alarm system is $4,500 and, above a 2,000 sq. ft. benchmark, each 100 sq. ft. is worth $6,000, this comparable will have to be adjusted for an alarm system and square footage by:
$0 and -$6,000 respectively.
-$4,500 and +$6,000 respectively.
$0 and +$12,000 respectively.
+$4,500 and -$12,000 respectively.
+$4,500 and -$12,000 respectively.
Under the Land Title Act, in British Columbia a mortgage is registered on the title as:
a charge.
an agreement for sale.
a right to purchase.
a restrictive covenant.
a charge.
Max has arranged a loan of $232,000 at an interest rate of 7% per annum, compounded semi-annually. Payments are $1,528 per month. What is the period necessary to amortize the loan?
approximately 30 years
2.5 Years
29.9973846 months
approximately 10 years
approximately 30 years
The investment method of appraisal is generally used for:
Properties that produce rental income
Single family homes
Air space rights
Properties that possess latent value
Properties that produce rental income
A borrower who makes biweekly payments:
will make a smaller number of payments in a calendar year than a borrower who makes constant monthly payments (all other loan terms being equal).
will pay more interest over the life of the loan than a borrower who makes constant monthly payments (all other loan terms being equal).
pays one-twelfth of the annual payment every two weeks.
pays one-half of the monthly payment every two weeks.
pays one-half of the monthly payment every two week
Which of the following statements concerning the equitable jurisdiction of the courts are TRUE?
A. the rules of equity were developed as a remedy for the rigidity of the common law of England
B. where the rules of equity and common law conflict, the court will apply the common law rule
C. equitable remedies are available to parties in a court action as of right, regardless of their conduct
D. specific performance, injunction and legal damages are three types of equitable remedies
A, B and D are true
B, and C are true
Only A is true
All of the above are true
Only A is true
Which of the following items is deducted from gross potential revenue to arrive at gross realized revenue when preparing an appraisal using the income method?
Vacancy and bad debt allowance.
Interest on the mortgage
Real property taxes
Parking income
Vacancy and bad debt allowance.
The practice of recognizing expenses as they are incurred, rather than when they are paid for, is a characteristic of:
the cost principle.
the recognition principle.
the matching principle.
the conservation principle.
the matching principle.
David Jones is being sued for creating a nuisance. He makes the following arguments:
A. The activity which is involved benefits the public.
B. The damage he has created is trifling and of little consequence.
C. He has not been negligent in carrying out the activity.
D. The activity is authorized by statute and cannot be carried on without creating a nuisance.
Which of the above is a valid defense to the lawsuit?
A, B, C and D
A and D
B and D
A and C
B and D
Which of the following factors is MOST likely to affect the value of residential real property in the short run?
Consumer opinions relating to residential real estate values
The supply and cost of raw materials
Government programs effecting real estate
Shifts in age composition of the population
Consumer opinions relating to residential real estate values
A development company has received a contractual loan in the amount of $1,250,000 at 8% per annum, compounded monthly with 2 year term, and annual interest-only payments. What is the amount of these interest-only payments?
$102,000.00
$120,113.19
$102,178.19
$103,749.39
$103,749.39
Which of the following statements concerning the equitable jurisdiction of the courts are TRUE?
A. the rules of equity were developed as a remedy for the rigidity of the common law of England
B. where the rules of equity and common law conflict, the court will apply the common law rule
C. Equitable remedies are available to parties in the court action as of right, regardless of their conduct
D. Specific performance, injunction and legal damages are three types of equitable remedies
Which of the following is correct?
A, B and D are true
B, and C are true
Only A is true
All of the above are true
Only A is true
A borrower who makes biweekly payments:
will make a smaller number of payments in a calendar year than a borrower who makes constant monthly payments (all other loan terms being equal).
will pay more interest over the life of the loan than a borrower who makes constant monthly payments (all other loan terms being equal).
pays one-twelfth of the annual payment every two weeks.
pays one-half of the monthly payment every two weeks.
pays one-half of the monthly payment every two weeks.
Lydia has been awarded a judgment of $100,000 against Clive. If Clive refuses to pay the amount ordered, what are Lydia’s options for enforcing the judgment
She may have Clive fined for contempt of court.
She may register her judgment in the land title office and apply to the court for a judicial sale of Clive’s property
She may apply to have a garnishing order served on Clive’s employer, ordering the employer to pay all of Clive’s wages into court, whereupon Lydia could then apply to have it paid out to her
She may do all of the above
She may register her judgment in the land title office and apply to the court for a judicial sale of Clive’s property
Which of the clauses in a mortgage does NOT directly apply when a borrower defaults on a mortgage?
Omnibus clause
Repayment clause
Acceleration Clause
Mortgage in possession
Repayment clause
Which of the following is NOT an example of a breach of contract?
After Don contracted with Toni to buy his car, the night before Don was supposed to pay Toni and take the car, it was struck by lightning in Toni’s driveway and destroyed.
After Babs contracted with Quin in May to rent his motorhome for one week in July, Quin telephoned Babs and told her that he was going to be using the home himself that week, and that she would not be able to rent it.
Fred contracted with Jordan to sell him his collection of hockey cards, but one day later Fred sold them to Andrew, who paid him $15 more than Jordan had agreed to pay.
Adrian contracted to paint Woodie’s house starting on September 1 for a price of $500. On September 1 Adrian failed to turn up, and did not return any of the messages that Woodie left on his answering machine.
After Don contracted with Toni to buy his car, the night before Don was supposed to pay Toni and take the car, it was struck by lightning in Toni’s driveway and destroyed.
In which of the following situations is the residual method of appraisal the most suitable method to use ?
When the market supply and demand forces are fairly constant
Where there is a large volume of available market data and the subject property represents the highest and best use
where the value to be measured is market value expressed as an income flow
where the subject property processes development potential
where the subject property processes development potential
Which of the following statements BEST defines the word “recent” in the context of the comparative method:
A period of time which the prime interest rate has been stable
A period of time during which property values in the region have been stable
A period of time of not less than one week and no more than six months
A period of time during which at least four properties have sold in the subject property’s neighborhood
A period of time during which property values in the region have been stable
In which of the following mortgages does the payment increases on a regular basis?
reverse annuity mortgage
graduated payment mortgage
straight line principal reduction mortgage
interest accruing mortgage
graduated payment mortgage
Which of the following is a red flag mortgage brokers should be conscious of in order to spot value fraud?
A. There is a vendor take back mortgage on the property
B. The property contains an unauthorized suite
C. There are a number of trades on the property in a short period of time
D. The listing price is higher that the final purchase price
E. The appraiser is on the approved list of appraisers for the lender
A, D, E are red flags mortgage brokers should be conscious of in order to spot value fraud
A, B, C are red flags mortgage brokers should be conscious of in order to spot value fraud
D and E are red flags mortgage brokers should be conscious of in order to spot value fraud
Only C are red flags mortgage brokers should be conscious of in order to spot value fraud
A, B, C are red flags mortgage brokers should be conscious of in order to spot value fraud
An acquaintance of yours has approached you and wants to know why the bank which may finance his purchase of a house requires an appraisal. He claims that since an appraisal is not required for an investment in stocks, an appraisal should not be required for an investment in real property. Which one of the following statements provides the BEST reasoning for your support of the bank’s requirement?
The high turnover of real estate relative to stocks means that only an expert can keep up with changing values.
The local nature of the real estate market implies that the flow of information will be unlimited and easy to assemble
It is difficult to find real properties that are very much alike.
All of the above statements are true
It is difficult to find real properties that are very much alike.
An investor wants to decide whether he should buy a mortgage which calls for monthly payments of $450 for 20 years. If the investor can earn J12= 6% in other investments, at what price should the investor purchase the mortgage?
$62,811.35
$69,843.09
$66,100.37
$63,185.52
$62,811.35
How would wages payable and accounts receivable be classified on the Balance Sheet?
wages payable – current assets; accounts receivable – noncurrent liabilities
accounts receivable – current assets; wages payable – current liabilities
wages payable – noncurrent assets; accounts receivable – noncurrent liabilities
accounts receivable – noncurrent assets; wages payable – current liabilities
accounts receivable – current assets; wages payable – current liabilities
Which of the following scenarios illustrates a violation of the provision of the Competition Act?
A. Peter, Paul and Pedra each run one of the three real estate agencies in Squamish; Peter and Paul have been planning to fix their commissions at a rate which will undercut Pedra’s business but they have not yet initiated their plan
B. Harry, who is not in the real estate business, recently decided to sell his apartment himself and placed an advertisement in the paper giving the details. In the ad, he mentioned that the carpeting was new when he bought the apartment one year ago, when in actual fact, the carpeting was 5 years old at the time but in decent condition. Elaine, a ballet dancer, intends to replace the carpet with hardwood, shortly after she purchases the apartment.
Only A
Only B
Both A and B
None of the above
Both A and B
Which of the following is a defense for a nuisance causing a physical damage to a property?
the nuisance is the unavoidable result of a statutorily authorized activity
all reasonable care was taken to prevent nuisance
the activity causing the nuisance benefits the public
a reasonable use was made of the property
the nuisance is the unavoidable result of a statutorily authorized activity
Which of the following statements regarding the management of individual loans is true?
The book value of a mortgage is an estimate of the amount that might be received if the existing mortgage was to be sold in an arm’s-length transaction under current conditions
Individual borrowers have the right, under the terms of the Interest Act, to prepay all of the outstanding debt at any time after three years from the initiation of the mortgage.
Arrears (tardiness in making payments) and default (no payments being made) are not common on mortgage loans
A mortgage is an asset that cannot be sold to other investors
Individual borrowers have the right, under the terms of the Interest Act, to prepay all of the outstanding debt at any time after three years from the initiation of the mortgage.
Governments pass statutes in order to:
change the common law
develop a system of precedent
alter the constitutional allocation of legislative authority between the federal and provincial governments.
do all of the above.
change the common law
What is a limited partnership?
General partner who carries on the business of the partnership and has limited liability
General and limited partners have the same income status
Requires only one general (or managing) partner and one limited partner
Limited partners can take part in the day-to-day operations of the partnership
General and limited partners have the same income status
In appraising an income producing property using the income method, gross potential rents must be estimated. How are gross potential rents best determined?
based on long term vacancy rates in the area in which the subject property is located
based on published surveys of relevant real estate trends
based on the relationship between money actually received and units actually rented
based on actual current rents of similar properties
based on actual current rents of similar properties
When an Order Absolute of Foreclosure is obtained by a petitioner who is in the position of second mortgagee:
that mortgagee has right to sue the borrower on his or her personal covenant.
the petitioner may sell the property after taking title to it but will have to account to the borrower for any profit which might be realized in excess of the mortgage debt
all other charges, liens, encumbrances and interests registered on the borrower’s title are foreclosed or “wiped” off the title.
the order forecloses the registered owner’s interest in the mortgaged land and permits the petitioner to transfer title into his or her own name.
the order forecloses the registered owner’s interest in the mortgaged land and permits the petitioner to transfer title into his or her own name.
Where a deposit paid directly to a seller on account of the purchase price:
The amount of the deposit will appear as a credit to the buyer’s statement and a debit on the seller’s statement
The amount of the deposit will appear only on the seller’s statement of adjustments
The amount of the deposit will appear as a debit on the buyer’s statement and a credit to the seller
The amount of the deposit will appear in the same column as the purchase price on the sellers statement
The amount of the deposit will appear as a credit to the buyer’s statement and a debit on the seller’s statement
After a borrower has given a mortgage of real property, the borrower’s remaining interest is described at law as:
A collateral advantage.
The equity of redemption
An equitable mortgage.
None of the above
The equity of redemption
Which of the following statements about federal legislation governing mortgage interest rates is TRUE?
The Interest Act requires that the rate of interest chargeable under a mortgage be “reasonable”, in the prevailing market for funds
The Criminal Code defines a criminal rate of interest as an effective annual rate in excess of 50%.
Section 10 of the Interest Act creates the right to tender prepayment of a mortgage after 5 years provided that the borrower is not a corporation, and the mortgage is not for a business purpose.
The Interest Act provides that if a mortgage agreement does not specify the rate of interest chargeable, the rate allowed by law is 5%.
The Interest Act provides that if a mortgage agreement does not specify the rate of interest chargeable, the rate allowed by law is 5%.
Which of the following occurs during the pleading process?
Response to a Civil Claim
Trial
Judgement
Enforcement
Response to a Civil Claim
When will an appraiser be MOST justified in employing the cost method to determine market value?
when there is nothing to compare to
when the assumption that cost and value are equal
for the method which represents the property’s highest and best use
when property possesses latent value
when there is nothing to compare to
Lenders who are attempting to ration mortgage funds could:
decrease their gross debt service ratio.
decrease their interest rate on mortgage loans.
increase their maximum loan to value ratio.
increase the maximum amortization period available on mortgage loans.
decrease their gross debt service ratio.
Assume that your firm selects a relatively small target market and then focuses its entire effort on satisfying the needs of this target market, this is known as:
Undifferentiated marketing
Combined target marketing
Differentiated marketing
Concentrated marketing
Concentrated marketing
Which of the following does not result from the doctrine of stare decisis?
Decisions by the Supreme Court of Canada are accorded the most weight in our jurisprudence.
The outcome of the cases can be predicted with absolute certainty.
Former decisions are used as a basis for later decisions.
The common law system has uniformity.
The outcome of the cases can be predicted with absolute certainty.
A company has just bought a truck for $22,500. It is expected that the truck can be sold for $3,000 fifteen years from now. The current market value of the vehicle is $27,000. Using the straight-line method, what is the annual depreciation expense?
$1,300
$1,500
$1,600
$1,800
$1,300
Your client would like to purchase an income-producing property. You have found a property that has an annual income net operating incoming of $225,000 and a market capitalization rate of 4.5% per annum, compounded annually. What is the market value of the property?
$4,100,000
$4,500,000
$5,000,000
$5,625,000
$5,000,000
You place $10,000 in a term deposit where it will accrue interest at a rate of 6.5% per annum, compounded quarterly. The term of the investment is 2 years. How much money will you receive at the end of the 2 year term?
$11,376.39
$14,723.57
$8,790.14
$11,364.75
$11,376.39
Consider that these different appraisals, as estimates, are subject to some acceptable error. Which of the following is LEAST likely to be considered an acceptable error for an appraiser between several recent sales?
Appraised for $235,000 sells on the appraisal date for $250,000
Appraised for $462,000 sells on the appraisal date for $410,200
Appraised for $321,000 sells on the appraisal date for $343,500
Appraised for $529,000 sells on the appraisal date for $487,000
Appraised for $462,000 sells on the appraisal date for $410,200
