mock 2 Flashcards
A local mortgage broker has arranged a mortgage in the amount of $240,000. The borrower has agreed to pay a brokerage fee of $8,999.82 which is to be added to the loan amount, giving a face value of $248,999.82 for the loan.
The mortgage bears interest at a contract rate of 18% per annum, compounded quarterly. The mortgage has a term and amortization period of 25 years. The loan is to be repaid using monthly payments. The equivalent periodic interest rate, expressed as a rate per month, on the funds advanced is:
- 53649446786%
- 42140087486%
- 50410643789%
- 67322516185%
1.53649446786%
There are many variations of identity fraud. Which one of the following is not an example of an identity fraud?
A fraudster electronically obtains information on a property and the registered owner, then forges a transfer of the title into his own name.
A fraudster creates a fake letter of employment listing a co-conspirator’s phone number who confirms the false employment record on a credit check
A fraudster purchases property and then acquires a false appraisal, which is used to sell and finance at an inflated price to an unsuspecting purchaser.
A fraudster poses as the solicitor of a fake purchaser for a transaction and steals the mortgage funds upon advancement instead of directing the funds to the vendor.
A fraudster purchases property and then acquires a false appraisal, which is used to sell and finance at an inflated price to an unsuspecting purchaser.
Real Estate is effected by a wider and more serious range of externalities the any other commodity. It’s because of:
Rapid development of real estate property in highly populated area
Divisibility of ownership, both physically and legally
Durability of real estate property
Immobility of real estate property
Immobility of real estate property
Which of the following statements is FALSE?
Electrical systems are protected from overload by fuses or circuit breakers
Gas heating tanks are normally a little bigger than electrical heating tanks because gas units have a faster recovery time.
Septic tanks are common in rural areas
For any additions to a house, current plumbing systems….
Gas heating tanks are normally a little bigger than electrical heating tanks because gas units have a faster recovery time.
Truck driver Nick dumped toxic waste on Henry’s backyard. Henry’s neighbour saw it and they trace it back to Nick and decide to press charges against him and sue for $20,000 in damages. Which of the following is TRUE?
If the plaintiff decides to appeal from Small Claims Court it will go to the BC Court of Appeal
If the plaintiff decides to take action, he has to bring his claim down to $3,000 in order to go to Small Claims Court
If the plaintiff decides to appeal he will use the Response to a Civil Claim form
If the plaintiff wants to appeal from Small Claims Court he can go to any Supreme Court anywhere in his province
If the plaintiff wants to appeal from Small Claims Court he can go to any Supreme Court anywhere in his province
The Competition Act prohibits false or misleading advertising. Which of the following statements
concerning this offence is FALSE?
A person or company can be guilty under the Competition Act even though every part of their
advertisement is literally true, when the general overall impression is misleading.
For a misrepresentation to offend against the Competition Act it must be false or misleading in a
material respect.
The standard applicable in determining whether a statement is misleading or not is whether a
knowledgeable person would be misled.
Where an accused can show that he or she had taken all reasonable care to determine the truth of
the statement and that he or she honestly believed it to be true, the accused will avoid liability.
The standard applicable in determining whether a statement is misleading or not is whether a
knowledgeable person would be misled.
A mortgage broker must provide a written disclosure statement in certain circumstances. The disclosure statement must be in the prescribed form and must be dated and signed by the mortgage broker. Assuming none of the exemptions apply, in which of the following transactions would the mortgage broker be required to provide a written disclosure statement?
A transaction where the mortgage broker arranges a mortgage for a lender in return for a commission.
A transaction in which a mortgage broker arranges the sale of a lender’s interest in a mortgage in return for a brokerage fee.
A transaction in which a mortgage broker sells his or her interest in a mortgage to a third party.
In all of the above circumstances, a written disclosure is required.
In all of the above circumstances, a written disclosure is required.
The evaluation of an applicant’s ability to meet the terms of a mortgage and the amount of their income available for future mortgage payment is known as:
a credit history
a credit review
a credit score
a credit analysis
a credit analysis
Which of the following documents regulated by the land title office are required in order for legal title to be transferred from seller to buyer?
Income tax rates
A Title Search Certificate
A Freehold Transfer
A statement of adjustments for each of the buyer and seller
A Freehold Transfer
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 – stranger pull her over on land with “No Trespassing” sign
Vivian rushes to “Shoe World” store just as 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
The Big Shoe company pays $15,500 for an asset which the income Tax Act allows capital cost allowance at 4% per a year. The asset is expected to have a useful life of 10 years and will have a salvage value of 1,500. Calculate the depreciation expense for accounting purposes for the asset’s 5th year if the accountant chooses to use straight-line depreciation
$6,020
$1,656
$1,400
$1,565
$1,400
Which of the following elements is NOT required in order to establish a restrictive covenant?
It must be negative in nature.
Both the benefited and burdened land must be precisely identified in the agreement or document creating the restrictive covenant.
The burden of the restriction must have been intended by the parties to bind the land.
The covenantor must retain the restricted property as any subsequent purchaser will not be a
party to the original contract.
The covenantor must retain the restricted property as any subsequent purchaser will not be a
party to the original contract.
Four years ago, Gussy Dup bought a small apartment in a very fashionable district of New Yawk. Gussy felt his purchase was a bargain at $340,000, especially considering his down payment was only $100,000 and he was able to obtain a mortgage for the remaining $240,000 at J2 = 5%, amortized over 25 years with annual payments. However, Gussy has now lost his job and must sell his apartment. He has received an offer of $50,000 cash plus assumption of the existing mortgage. The market rate for similar 21 year mortgages is J2 =3%
Calculate the market value of the offer.
$297,634.92
$347,634.92
$311,197.81
$313,571.25
$313,571.25
Which of the following items are 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.
When setting a target market, a good negotiator would:
1) Set a resistance point that effects the sale
2) Set an aspiration target that represents the best scenario
Set your expectations low
Both(1) and (2)
Both(1) and (2)
Which of the following statements is TRUE regarding 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 is owed to a licensee
An occupier must object to habitual trespassers in order to prevent them from gaining an implied license of law
As determined by the promotional mix, which of the following represents face-to-face communication with the potential customers:
Personal selling
Public relations
Sales presentations
Publicity
Personal selling
Wattage in the Canadian Electrical Code System is:
a measure of the rate of electrical flow
a measure of electrical potential or pressure of current flow
a measure of power or consumption
none of the above
a measure of power or consumption
A borrower has arranged a loan of $32,000 at an interest rate of 17% per annum, compounded semi-annually with payments set at $1,575.00 per month. What is the period necessary to amortize the loan?
exactly 24.129764086 years
exactly 23.9705036885 years
approximately 2 years
approximately 20 years
approximately 2 years
Where a borrower feels 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 Title Act
All of the above
The Business Practices and Consumer Protection Act
If a negotiator recognized 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 is NOT the powers of the Registrar of Mortgage Brokers under the Mortgage Brokers Act?
The Registrar has the power to investigate any complaints regarding a breach of Mortgage Brokers Act.
Registrar has the power to investigate criminal fraud.
Registrar’s powers of investigation allow him or her to enter, inspect all books of account and other records, and to seize any relevant information from a mortgage broker.
The Registrar has the power to freeze the trust funds of any mortgage broker pending the outcome of the investigation.
Registrar has the power to investigate criminal fraud.
Which of the following would appear as a debit on the seller’s statement of adjustment?
The amount of mortgage which the buyer will assume
The legal fees involved in discharge a judgment from the seller’s title
The amount of penalty owning for overdue taxes
All of the above would appear as a debit on the seller’s statement
All of the above would appear as a debit on the seller’s statement
A borrower who makes accelerated biweekly payments:
Will make a smaller number of payments in a calendar year than a borrower who makes constant monthly payments (all other terms are equal)
Will pay more interest over the life of the loan than a borrower who makes constant monthly payments (all other terms are equal)
Pays one-twelfth of the annual payments every two weeks
Pays one-half of the monthly payments every two weeks
Pays one-half of the monthly payments every two weeks