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