mock 12

Question 1

Your client wants to purchase a house that is listed for $276,000. The bank’s appraiser estimates that the landing value of the property is $275,000. Your client’s annual gross income is $50,000 per year. The bank applies an 80% loan-to -value ratio and gross debt service ratio of 32%. Property taxes amount to $1,800 per year. Assume that the lender demands a 25 year amortization and monthly payments at a contract rate of J2 = 4%. The Bank of Canada posted rate is J2=5.5%. How much can you client borrow, given the stress borrower qualification rules for uninsured mortgages? Round the answer to the nearest $10.

$184,950
$175,600
$206,360
$220,000

Answer 1

$184,950

Question 2

A mortgage broker who speaks poorly of another mortgage broker in the public or publicly discredits another licensee is breaching the ethical duty of;

professional courtesy and good faith
respecting client relations
confidentiality
competence

Answer 2

professional courtesy and good faith

Question 3

The two types of contract assignments are:

Statutory assignments and common law assignments
Equitable assignments and regulatory assignments
Common law assignments and civil law assignments
Statutory assignments and equitable assignments

Answer 3

Statutory assignments and equitable assignments

Question 4

Martha dies and leaves her residential property to her daughter Nicole “as a tenant for life and without impeachment for waste and then to Victoria in fee simple. Nicole leases part of the property to Tiffany for a year. Nicole will be most likely liable to Victoria for which of the following actions?

Refusing to forward rent received from Tiffany to Victoria.
Removing the vegetable garden that Victoria loved to install the swimming pool
Painting over a mural that Martha has painted on one of the interior walls of the house
Demolishing the house after getting into fight with Victoria and failing to rebuild it.

Answer 4

Demolishing the house after getting into fight with Victoria and failing to rebuild it.

Question 5

In appraisal an annual sum set aside for replacement, repairs and renovations is best known as a:

Special fund
Cyclical repair
Replacement reserve
Capitalization rate

Answer 5

Replacement reserve

Question 6

Which of the following message sources would be considered the MOST credible?

Sales Promotion
Word- of Mouth
Personal Selling
Email

Answer 6

Word- of Mouth

Question 7

Under the ethical duty of competence, what should the licensee do if he or she is asked to help a client in a type of transaction in which the licensee does not believe he or she can provide skilled and conscientious service?

The licensee should report the matter to the real estate Council.
The licensee should decline to act for the client.
The licensee should act for the client but conduct himself or herself cautiously.
The licensee should act for the client but disclose to the client that the licensee may not be able to provide skilled and conscientious service.

Answer 7

The licensee should decline to act for the client.

Question 8

Which of the following BEST describes the difference between common law and statue law?

Statue law refers to the written decisions of judges, whereas the common law refers to unwritten legal principles and customs.
In answering a legal question, the judge will first look to the relevant common law and will then refer to statue law to fill in the gaps.
Common law refers to judge-made law typically recorded in written decisions, whereas statue law refers to legislation enacted by governments.
Common law refers to the generally applicable laws enacted by governments, whereas statute law refers to specific regulations enacted under those general common laws

Answer 8

Common law refers to judge-made law typically recorded in written decisions, whereas statue law refers to legislation enacted by governments.

Question 9

“Quantum Meruit” is a legal principle that:

requires consideration to be quantifiable in the eyes of the court.
Void all contracts where the terms are not specific enough to have effect
Prevents consideration that occurred in the past from having any legal effect
Implies a promise to pay a reasonable amount where none is mentioned.

Answer 9

Implies a promise to pay a reasonable amount where none is mentioned.

Question 10

Which of the following statements about transport permits for manufactured homes are TRUE?

A. the registrar may issue a transport permit to the owner of an unregistered manufactured home if the owner provides the registrar with an undertaking to register

B. a transport permit will generally only be valid for a period of 30 days from the date of the issuance.

C. before issuing a transport permit, the registrar must be satisfied that all taxes on the home have been paid.

D. a transport permit only authorizes the movement of the manufactured home to a specific location.

Only A nd C
Only A and D
Only B, C and D
All of the above

Answer 10

Only B, C and D