mock 9

Question 1

A promotional mix is a blend of:

Personal selling, advertising, place, price and promotion.
Product, price, personal appearance, public relationships and sales promotions
Personal selling, advertising, public relations, sales promotions and publicity
Product, price, place and personal selling.

Answer 1

Personal selling, advertising, public relations, sales promotions and publicity

Question 2

A mortgage for $200,000 is written at 6% per annum, compounded semi-annually. The mortgage calls for

monthly payments rounded up to the next higher dollar, a 5-year term, and a 20-year amortization. The mortgage contract permits the borrower to prepay the full amount of the loan at any time subject to the payment of a three months’ interest penalty. At the time of prepayment, the current comparable interest rate is 4% per annum, compounded semi-annually.

If the borrower wishes to prepay this loan at the end of the first year (with the 12th payment), calculate the

amount of the three months’ interest penalty.

$969.01
$15,504.15
$5,687.99
$2,883.28

Answer 2

$2,883.28

Question 3

Upon satisfactory completion of the initial registration of a manufactured home in BC, the registrar issues a decal which must be affixed to the manufactured home. The decal:

Must be renewed every year.
Must be replaced whenever the manufactured home changes ownership.
Is issued as a proof of registration under the Manufactured Home Act.
If lost, stolen, or damaged, can only be replaced through a lengthy and costly application process with the registrar.

Answer 3

Is issued as a proof of registration under the Manufactured Home Act.

Question 4

Common property in a strata title development is:

owned equally by all members of the strata corporation .
owned by the strata council
property designated for the exclusive use of the owners of one of more strata lots
subject to strata council rules regulating its use, safety, and condition.

Answer 4

subject to strata council rules regulating its use, safety, and condition.

Question 5

Using the cost method of appraisal, determine the market value of a property with a 40,000 square foot building if construction costs new are $60 per square foot, land value is estimated to be $1,200,000 and total depreciation on the building to date is to be 6%.

$3,456,000
$3,310,480
$3,408,000
$3,481,600

Answer 5

$3,456,000

Question 6

The flow of information concerning real property is limited and difficult to collect because:

Real property depreciates at a relatively constant rate over time.
Every parcel of real property is homogenous and comparables are easy to find and
evaluate.
The turnover rate for real property is low.
real property markets are national and even international in scope.

Answer 6

The turnover rate for real property is low.

Question 7

Your friend mentioned to you that the value of his house was $655,000 While you understand what he means , you know that the true subject of an appraisal is :

known as the value to the owner because it is subjective in nature
a combined value that considers personal property , public property and private simulations
the market value of the physical property
the value of the legal rights of the ownership vested in a particular piece of real estate.

Answer 7

the value of the legal rights of the ownership vested in a particular piece of real estate.

Question 8

Which of the following types of conduct does the Competition Act NOT explicitly address?

Spam (i.e , mass distributed junk mail)
Agreements in restraint of trade
Price maintenance
Misleading advertising

Answer 8

Spam (i.e , mass distributed junk mail)

Question 9

Your client borrowed $460,000 by the way of an interest accruing loan written at J12=3 %. How much will your client owe at the end of ten months?

$471,630.24
$473,800.00
$470,454.11
$448,656.56

Answer 9

$471,630.24

Question 10

Changes in mortgage interest rates tend to lag behind changes in bond yields in both upward and downward movements. One reason for this “stickiness” is:

the short-term nature of a mortgage loan contract.
Mortgages are highly liquid investments.
The wide use of advance commitments for a rate of interest before a loan is advanced.
Mortgage rates do not change during fluctuations in the national economy.

Answer 10

The wide use of advance commitments for a rate of interest before a loan is advanced.

Question 11

In mortgage lending, the interest adjustment period is:

The process of paying off a loan by periodic payments of blended principal and interest.
The period of time between the date that funds are advanced and the beginning of the first payment period.
The period of time agreed to by both parties to a real estate transaction for the adjustment of property taxes, rent, and other items.
Any period of twelve consecutive months chosen be a business as its accounting period.

Answer 11

The period of time between the date that funds are advanced and the beginning of the first payment period.

Question 12

Ryan entered into a contract with Erin to sell his sports car. Ryan had previously crashed the car multiple times and had it rebuilt. When Erin asked about whether the car had been involved in any accidents, Ryan replied by saying that it was in excellent condition and had never been in an accident. This is an example of:

Innocent misrepresentation
Fraudulent misrepresentation
Negligent misrepresentation
Undue influence

Answer 12

Fraudulent misrepresentation

Question 13

The key purpose of a foreclosure action is to:

Extinguish the borrowers equitable right to redeem the property
Obtain judicial recognition that the lender has a valid mortgage on the particular property.
Register a mortgage with the Land Title Office.
Obtain a quitclaim deed in the property whereby the borrower agrees to forfeit his or her title to the lender.

Answer 13

Extinguish the borrowers equitable right to redeem the property

Question 14

In appraisal, physical wear and tear that can be corrected economically is best known as:

functional incurable depreciation
physical incurable depreciation
functional curable depreciation
physical curable depreciation

Answer 14

physical curable depreciation

Question 15

Which of the following is NOT a unity required to create a joint tenancy?

Title
Interest
Possession
Disposal

Answer 15

Disposal

Question 16

Which of the following is NOT a remedy for private nuisance?

A notice of civil claim
Injunctive relief
Abatement
Damages

Answer 16

A notice of civil claim

Question 17

When preparing an appraisal using the income method, which of the following items is deducted from gross realized revenue to arrive at net operating income?

Vacancy and bad debt allowance.
Depreciation and cost capital allowance
Income tax
Operation expenses (paid by landlord)

Answer 17

Operation expenses (paid by landlord)

Question 18

With a partially amortized loan:

1. The regular payments of principal and interest are calculated based on an amortization period which is longer than the loan term.
2. The entire amount of principal is repaid by periodic payments and the final regular payment will be smaller than the others.
3. The regular payments made by the borrower are calculated based on the term of the loan.
4. The entire amount of principal is repaid by a balloon payment at the end of the amortization period.

Answer 18

1. The regular payments of principal and interest are calculated based on an amortization period which is longer than the loan term.

Question 19

Which of the following statements made during a recent discussion about corporations are TRUE?

A. A corporation is subject to income tax, unlike a partnership.

B. Only shareholders are entitled to manage a corporation in accordance with the Business Corporation Act.

C. A corporation whose shares are traded on a stock exchange is referred to as a private company

D. Individuals who acquire shares in a company do not own the assess of the company

Only A and D are true
Only A, B and C are true
Only B and D are true
A, B, C or D are true

Answer 19

Only A and D are true

Question 20

You come across a property that possesses latent value. What would be the most appropriate method to appraise it?

The cost method
The comparison method
The income method
The residual method

Answer 20

The residual method

Question 21

You are thinking of purchasing undeveloped land to use for development purposes. As a sophisticated investor, you will determine the value of undeveloped land by:

1. Applying the appropriate replacement reserves to the selling price
2. Consulting with the owner of the undeveloped land as to his estimate of the land’s value.
   3.By calculating the net operating income the property produces.
   4 Determining the value of the improved land and subtracting the development costs.

Answer 21

4. Determining the value of the improved land and subtracting the development costs.

Question 22

A $190,000 mortgage loan, written at a nominal rate of 5% per annum, compounded semi-annually, has a 3 year contractual term. Payments are made monthly and are based on a 20 year amortization period. Payments are rounded up to the next higher dollar. What is the size of the required payments?

$1,297
$1,249
$1,157
$2,093

Answer 22

$1,249

Question 23

An offer of $625,000 is accepted, comprised of a cash down payment of $150,000 and a vendor supplied mortgage of $475,000 at J2=7.5%. The loan has an amortization period of 20 years, a term of 4 years and calls for monthly payments rounded up to the next higher dollar. Market rates for an equivalent mortgages are currently J2=8.5%. The market value of the offer is:

$672,614.10
$591,903.13
$576,555.07
$610,108.94

Answer 23

$610,108.94

Question 24

Three years ago your client bought a house at which time she arranged a mortgage in the amount of $320,000. The loan was written at a rate of 5.75% per annum, compounded quarterly, with 5 year term, and 25 year amortization period and monthly payments.

Your client has just received an offer to buy her house which provides $55,000 cash and assumption of the existing financing for the remainder of the term of current interest landing rates for 2 year term mortgages are 7.5% per annum, compounded quarterly, what is the market value of the offer?

$352,990.78
$347,047.13
$346,681.34
$292,047.13

Answer 24

$346,681.34

Question 25

Your friend just purchased a new condominium. She financed the purchase with the mortgage of $375,000 that calls for monthly payments of $2,250 over 20 year amortization period. What is a nominal rate, compounded semi-annually?

3.9177%
3.8861%
3.1420%
the interest rate cannot be determined

Answer 25

3.9177%

Question 26

Which of the following actions does NOT facilitate the exchange process in a negotiation?

Emphasizing the underlying interests and needs of each party.
Determining both parties’ priorities.
Considering as many solutions as possible.
Focusing on, and dedication significant time to, asserting and defending the positions of each party.

Answer 26

Focusing on, and dedication significant time to, asserting and defending the positions of each party.

Question 27

Scott grants RBC Bank a mortgage over his summer cottage on a lake. RBC, at law, has a contractual interest in Scott’s cottage. What is the legal name given to Scott’s remaining interest?

An equitable priority
A collateral advantage
The equity of redemption
An equitable mortgage

Answer 27

The equity of redemption

Question 28

A mortgage was written for $60,000 at an interest rate of J2=7.5% , 20 year amortization and monthly payments. Calculate the balance owning at the end of four years, rounded to the nearest dollar.

$52,791
$51,619
$53,885
$53,946

Answer 28

$53,885

Question 29

A mortgage loan with a face value of $160,000 is arranged through a mortgage broker. A commission of $7,000, appraisal fees of $250, as well as survey and legal fees totaling $1,000 will be deducted from the face value before the funds are advanced to the borrower. Calculate the cost of funds advanced to the borrower, expresses as an effective annual rate, if the loan is written at 4.75% per annum, compounded semi-annually with monthly payments over 15 year amortization and a 5 year term.

6. 058320%
7. 126070%
8. 935526%
9. 229407%

Answer 29

6.229407%

Question 30

When a property is taken in trade by the seller as part payment of the purchase price:

The value of the traded property is listed as a debit to the buyer and a credit to the seller.
The value of the property will appear as a credit on the buyer’s statement of adjustments.
The value of the traded property will appear on the buyer’s statement of adjustment only.
No entry to either statement of adjustments is needed to reflect the trade.

Answer 30

The value of the property will appear as a credit on the buyer’s statement of adjustments.

Question 31

Which of the following statements regarding the stress test borrower qualification rule for uninsured mortgage is TRUE?

The mortgage qualifying rate is based on the greater of the Bank of Canada’s 5-year benchmark rate and 2% above the mortgage’s negotiated contract rate
The stress test qualification rules only apply to mortgages from credit unions
Application of the stress test borrower qualification rule results in the borrower qualifying for a larger mortgage
The Financial Institutions Commissions of BC established the stress test requirements for all new mortgages from federally chartered institutions.

Answer 31

The mortgage qualifying rate is based on the greater of the Bank of Canada’s 5-year benchmark rate and 2% above the mortgage’s negotiated contract rate

Question 32

Which of the following statements is TRUE?

Subject to some exemptions, a bylaw may prohibit the rental of strata lots on the condominium complex.
In an entirely residential condominium complex, a bylaw must be amended by a ½ vote of the strata corporation.
A bylaw may contravene the Strata Property Act and Regulations, but only if it has been passed unanimously be the members.
An amended bylaw becomes enforceable once it is passed by the members.

Answer 32

Subject to some exemptions, a bylaw may prohibit the rental of strata lots on the condominium complex.

Question 33

Your client plans to pay for a vacant lot $500,000 which he feel will sell at the end of 5 years for $650,000. Assuming that these are the only cash flows for this investment, what is the yield expressed as a nominal rate with monthly compounding, will your client earn?

5. 25877%
6. 88447%
7. 57706%
8. 38739%

Answer 33

5.25877%

Question 34

Trespass:
Involves the use of one’s own property in a way that causes unreasonable ..with another’s use and enjoyment of his or her property.
Cannot be committed by a person under 19 years of age.
Has been replaced by the Occupiers Liability Act.
Is an intentional tort, meaning that the act if trespassing must be voluntary.

Answer 34

Is an intentional tort, meaning that the act if trespassing must be voluntary.

Question 35

Which of the following would likely NOT be considered an occupier under the Occupiers Liability Act of BC?

The owners of a summer home, in which they reside only four weeks a year.
With respect to a rental property, the property manager who rarely visits the building.
The tenants of a small home in Vancouver, who are in year 1 of a two year lease.
A maintenance person who is hired by a business to clean the windows of their building each day.

Answer 35

A maintenance person who is hired by a business to clean the windows of their building each day.

Question 36

Amanda has decided that she wants to convert her apartment building to a condominium development. Amanda knows that the conversion must be approved by the municipal council. In making its decision, which of the following criteria in the municipal council required, by statue, to consider?

A. Whether Amanda has complied with the disclosure statement requirements set out in the Real Estate Service Act

B. The priority of rental accommodations over privately owned housing in the area.

C. The life expectancy of the building

D. Public option on the location of the building

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

Answer 36

Only B and C

Question 37

Your friend took out an interest only loan at the bank. She borrowed $178,000 at an interest rate of 4.75% per annum, compounded semi-annually. She makes quarterly payments and the loan has a term of 5 years. What is the amount of her 13th quarterly interest only payment?

$2,825.09
$2,101.35
$697.72
$10,044.17

Answer 37

$2,101.35

Question 38

A company recently purchased $12,000 worth of new construction equipment. The company expects to sell the construction equipment at the end of it’s 5 year life for $1,000. What is the annual depreciation expense if the company uses straight-line depreciation method?

$2,000
$2,600
$2,400
$2,200

Answer 38

$2,200

Question 39

Which of the following is FALSE ?

Both arbitration and mediation can produce non-binding resolution
The rules of evidence are relaxed for arbitration and mediation
The neutral 3rd party in both arbitration and mediation may impose a biding solution on the two parties.
Both arbitration and mediation are less formal than the Court.

Answer 39

The neutral 3rd party in both arbitration and mediation may impose a biding solution on the two parties.

Question 40

What is the yield on a property that sold for $875,000 and had a stabilized annual net operation income of $64,000?

12. 1093%
13. 25806%
14. 6718%
15. 31429%

Answer 40

7.31429%

Question 41

Which of the following is a generally acceptable accounting principle?

Calendar Year Principle
Substitution Principle
Income Principle
Objectivity Principle

Answer 41

Objectivity Principle

Question 42

Which of the following statements comparing condominiums and cooperatives is FALSE?

A cooperative’s board of directors will normally be required to approve a prospective buyer whereas generally, a strata lot owner may sell his or her lot to whoever he or she wishes.
Both stratas and cooperatives are created by depositing an incorporation agreement to the Land title office.
The owner of strata lot holds a fee simple interest while the owner in a cooperative possess a share in a company or cooperative association.
Where an existing rental building is being converted to either a strata or a non-profit cooperative, the existing tenants are covered by the protections afforded by the B.C. Residential Tenancy Act.

Answer 42

Both stratas and cooperatives are created by depositing an incorporation agreement to the Land title office.

Question 43

A breach of a condition of a contract:

Disentitles the injured party to monetary damages.
Concerns only a minor term of the contract.
Allows the innocent party to terminate the contract.
Is not as serious as a breach of a warranty.

Answer 43

Allows the innocent party to terminate the contract.

Question 44

An Anchoring effect is best described as:

An economic trend that prevents the value of any one property in a neighborhood from rising too far above the value of the least valuable property in that neighborhood.
physiological phenomenon whereby the first number quoted in a negotiation causes the rest of negotiation to be based on that number.
A sociological theory that predicts that the longer someone occupies a property the higher the price he or she will seek upon deciding to sell it.
A market force that causes all commission rates in an area to fall uniformly in proportion when one licensee in the area reduces his commission rate.

Answer 44

physiological phenomenon whereby the first number quoted in a negotiation causes the rest of negotiation to be based on that number.

Question 45

You have a partially completed appraisal report that you need to fill in. The subject property has 5 bedroom and 4 bathrooms. The house next door is similar in all respects except for the number of bedrooms. The comparable sold for $650,000 and had 4 bedrooms and 4 bathrooms. If the market value of a bedroom is $4,500 and the market value of a bathroom is $5,000, the adjusted sale price for this comparable is:

$640,500
$645,500
$654,500
$659,500

Answer 45

$654,500

Question 46

Which of the following statements is/are FALSE with respect to statements of adjustments?

A,. The practice is to hold the seller responsible for the taxes on the adjustment date itself.

B. The adjustment date and the possession date do not have to be on the same day.

C. The total of the debit column on the seller’s statement must be identical to the total of the credit column on the buyer’s statement.

D. On the completion date of the sale of real property, the buyer is usually entitled to the transfer of title.

Only A and B are false
Only A and C are false
Only B and C are false
All of the statements are false

Answer 46

Only A and C are false

Question 47

A potential borrower has inquired as to how large a mortgage loan she can afford with monthly payments of $550. If mortgage interest rates are currently 14% per annum, compounded monthly, with amortization period of 25 years, calculate the maximum loan allowable.

$46,857.20
$45,690.13
$45,693.67
$46,853.31

Answer 47

$45,690.13

Question 48

The purpose of a Code of Ethics is to:

A. Provide a number of legal remedies that can be exercised by those wronged be a member of a given profession.

B. Set a standard of conduct reasonably expected of members of a certain profession.

C. Provide guidelines to ensure that a given professional’s actions are both lawful and morally fair.

D. Ensure that the reputation of a given profession is upheld in the public’s eyes.

D only
B only
B, C and D only
All of the above

Answer 48

B, C and D only

Question 49

Which of the following statements is FALSE?

Unlike a licence, an easement is an interest in land.
A restrictive covenant must benefit a dominant tenement and burden a servient tenement.
An easement always grants exclusive possession of the easement land.
A lease creates an interest in land.

Answer 49

An easement always grants exclusive possession of the easement land.

Question 50

Which of the following acts would engage a category a category of law that is “public law”:

Breaching a warranty in a contract
Negligence
Evading taxes
Filing for divorce.

Answer 50

Evading taxes

Question 51

Which of the following is NOT one of the four key aspects of the Torrens System of the registration?

The assurance principle
The void deed
The effect of registration
The indefeasibility principle

Answer 51

The void deed

Question 52

Consider the following four properties:

A. a concrete plant in Squamish

B. a small single-family house in the central business district of Langley

C. a residential condominium in Richmond

D. a multi-unit apartment complex in Burnaby

Which appraisal method would be most suitable to appraise each of these properties?

A) market comparison; B) income; C) cost; D) residual
A) cost; B) market comparison; C) residual; D) income
A) income; B) residual; C) market comparison; D) cost
A) cost; B) residual; C) market comparison; D) income

Answer 52

A) cost; B) residual; C) market comparison; D) income

Question 53

Elvin is purchasing Jim’s beach house in Tofino. Elvin having a difficult time getting enough financing, so he decided to give Jim his boat, valued at $21,000. Furthermore, he will be assuming Jim’s existing mortgage on the property. Elvin just paid deposit of $30,000 directly to Jim. Which of the following items will appear as EITHER a debit or a credit on Jim’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

Answer 53

Deposit, assumption of the first mortgage, real estate commission

Question 54

which of the following statements is TRUE with respect to advertising?

advertising agencies should only be used in the final design phase of the advertisement.
Adverting should always be confined to local papers and magazines.
Persuasive advertising is aimed at providing information and creating awareness about a product or service.
Reminder oriented advertising focuses on keeping the product and service around the client’s mind.

Answer 54

Reminder oriented advertising focuses on keeping the product and service around the client’s mind.

Question 55

Alex, Ray and Lisa each own a residential lot. Alex owns a lot at the bottom of the hill, Ray owns the lot directly above him and Lisa owns the lot directly above Ray. Lisa has valid restrictive covenant with both Alex and Ray preventing them from building homes above two stories tall. Eventually, Alex sells his lot to Mike, who builds a three story home. At the same time, Lisa sells her lot to Don. Who may enforce the restrictive covenant against Mike.

Only Don
Only Lisa
Only Don or Lisa
Only Lisa or Ray

Answer 55

Only Don

Question 56

Which of the following statements are TRUE?

The Supreme Court of BC may exercise common law, but not equitable jurisdiction.
Small Claims court in BC does not have jurisdiction for claims exceeding $35,000
An appeal by the taxpayer to reduce a tax assessment would fall within the sphere of private law.
The Supreme Court of Canada is required to hear all appeals.

Answer 56

Small Claims court in BC does not have jurisdiction for claims exceeding $35,000

Question 57

By extending the amortization period of a loan to 30 years:

1. Results in large mortgage payments for borrowers
2. Means that borrowers will make payments every two weeks in order to reduce their interest cost.
3. Results in less interest paid by the borrower.
4. Means the repayment of principal is spread over a greater number of payments, making each payment smaller.

Answer 57

4. Means the repayment of principal is spread over a greater number of payments, making each payment smaller.

Question 58

Which one of the following items will NOT be found on the Balance Sheet of a corporation?

Retained earnings to date
Names of the corporation shareholders
Original cost of the property owned by the corporation
Number of the shares issued

Answer 58

Names of the corporation shareholders

Question 59

When estimating the market value of an interest in real property, an appraiser should:

Determine the purchasers’ ceiling price and the vendors’ floor price and calculate the average
2. Determine the price that can be reasonably expected given willing purchasers and vendors, adequate time and exposure to the market.
3. Determine the highest price that can be justified as reasonable by purchasers, given the property’s future economic prospects and purchasers’ investment needs.
Both 2 and 3 options

Answer 59

2. Determine the price that can be reasonably expected given willing purchasers and vendors, adequate time and exposure to the market.

Question 60

Which of the following criteria are used be negotiation experts in determining the effectiveness of negotiations?

Efficiency, preservation of the relationship, a zero-sum game
Distributive results, preservation of the relationship, minimal wasted resources
False authority, efficiency, a zero-sum game
Efficiency, satisfaction of both parties, minimal wasted resources

Answer 60

Efficiency, satisfaction of both parties, minimal wasted resources

Question 61

Calculate the quarterly periodic rate of interest that is equivalent to 12 % per annum, compounded quarterly.

1%
3%
12.550881%
4%

Answer 61

3%

Question 62

Which of the following courses of action can a successful plaintiff pursue in order to enforce a judgment?

Serve written pleadings on the defendant
Appeal to the BC Court of Appeal
Execution
File a Notice of Civil Claim

Answer 62

Execution

Question 63

In a comparative method of appraisal, it is MOST important that the building and the comparable buildings be:

similar with respect to factors that have a major influence on buyers and sellers.
free from any mortgages on title
of the same general architectural style
constructed by either average or above average workmanship

Answer 63

similar with respect to factors that have a major influence on buyers and sellers.

Question 64

A $225,000 variable rate mortgage was written at 3.5% per annum, compounded semi-annually, to be amortized over 20 years with monthly payments rounded to the next higher dollar. The mortgage contract specified that the interest rate is to be adjusted on each anniversary of the mortgage to the current market rate. One year later, the market rate increased to 4.5% per annum, compounded semi-annually. Calculate the required payments, rounded to the next higher dollar, after the first year, assuming the amortization period is not to be extended and that the contract specified variable payments are allowed.

$2,116
$1,302
$1,967
$1,414

Answer 64

$1,414

Question 65

Your client applied for a commercial loan at the bank. The property has an annual operating income of $117,000 and has a lending value of $500,000. The bank uses a 1.17 debt coverage ratio and will allow a maximum loan to value ratio of 70%. Mortgage rates J2=5% for fully amortized loan over a 4 year term with annual payments. What is the maximum 4 year loan your client will be entitled from the bank rounded to the next higher dollar?

$350,000
$322,987
$354,596
$414,877

Answer 65

$350,000

Question 66

H gave J an exclusive listing to sell her condo with an expiry date of Aug 1st.

J brought A, a prospective purchaser to see the condo. A expressed an interest in purchasing the property and went home to prepare an offer. H emailed A and asked her to wait until after Aug 1st to make her offer so that H could avoid paying J the agreed upon completion. A agreed and waited until Aug 4th to submit her offer. After completion, J heard about the transaction, telephoned H, and demanded her commission.

Which of the following statements is TRUE?

If J can show that H and A got together and agreed to wait out the listing period in order to avoid payment of commission, she can successfully sue H for damages.
J is not entitled to commission after the listing contract has expired.
J may be given reasonable remuneration for her work based on the principle of Quantum meruit.
H’s conduct terminated the agency relationship and therefore J has no claim for commission.

Answer 66

If J can show that H and A got together and agreed to wait out the listing period in order to avoid payment of commission, she can successfully sue H for damages.

Question 67

An offer is released or expires when one or more of the following occurs:

A. The offeror decides to revoke his or her oral offer and mails a written revocation to the offeree before acceptance.

B. No time limit is specified in the offer but a reasonable time has passed without an acceptance by the offeree.

C. The offeror dies or becomes insane before the offeree accepts the offer.

D. An offer is revoked by the offeror and the revocation is communicated to the offeree before acceptance.

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

Answer 67

Only B, C and D

Question 68

Eric and Mandy own a unit in Poppyland Place, a beautiful strata development. They bought the unit 5 years ago and have rented it out to Ms. Johnson, who continues to occupy the unit. Mandy has recently passed away, and her will gifted her interest in the unit to her son Melvin. Melvin has now contacted Eric and is demanding that he be paid one half of the unit price. Which of the following statements are FALSE?

A. Upon Mandy’s death, the entire interest remainS with the surviving joint tenant Eric.

B. By gifting her interest in the unit to Melvin, Mandy severed the joint tenancy.

C. Melvin and Eric now own the unit as tenants in common.

D. Melvin and Eric own the unit as joint tenants.

Only A is false
Only D is false
Only A and D are false
Only B, C and D are false.

Answer 68

Only B, C and D are false.

Question 69

A loan in the amount of $275,000 is to be fully amortized by level monthly payments over 20 years. Interest on the loan is 3.75% per annum, compounded semi-annually and the monthly payments are to be rounded up to the next higher dollar. Calculate the required final payment to fully amortize the loan.

$1,627.00
$1,378.31
$1,374.05
$1,493.25 


Answer 69

$1,378.31

Question 70

The “omnibus clause” of a mortgage agreement:

Gives the lender the right to accelerate mortgage loan in the event of borrower default.
Allows the lender, in the event of a borrower default, to add the defaulted amount to the principal of the mortgage, subject to the interest stated in the mortgage.
Requires the borrower to keep the property in a state of good condition and repair.
Requires the borrower to obtain insurance on the property for its full replacement cost.

Answer 70

Allows the lender, in the event of a borrower default, to add the defaulted amount to the principal of the mortgage, subject to the interest stated in the mortgage.

Question 71

Which of the following statements regarding property appraisal is FALSE?

The courts provide some guidelines as to an appraiser’s legal responsibilities, which are outlined in the law of contract and the law of tort.
A licensed real estate agent can give an appraisal of real property.
A large over valuation of property by an appraiser, by itself, always establishes liability on the part of the appraiser.
The courts have recognized that there is a reasonable margin of error when calculating damages resulting from a negligent appraisal.

Answer 71

A large over valuation of property by an appraiser, by itself, always establishes liability on the part of the appraiser.

Question 72

The marketing mix consists of:

place, publicity, place and public relations
product, price, publicity and promotion
price, place, publicity and promotion
product, place, price and promotion

Answer 72

product, place, price and promotion

Question 73

The acts of discouraging the reduction of prices, placing upwards pressure on prices and discriminating against someone because of their low pricing policy (by means of threat, promise or agreement) are offences under the:

Mortgage Broker Act
Competition Act
Business Practices and Consumer Protection Act
Price Maintenance Act.

Answer 73

Competition Act

Question 74

The buyer of a property has arranged for a $275,000 mortgage loan at 8% per annum, compounded semi-annually. Payments are to be made monthly commencing July 1. Full funds are advanced May 17. Calculate the size of the interest adjustment payment due on June 1. Assume that it is NOT a leap year.

$825.45
$852.14
$887.93
$885.06

Answer 74

$887.93

Question 75

Which of the following items are found in the house are chattels?

A. New laminate flooring in the downstairs rooms

B. An ordinary fridge in the garage

C. Wood for the fireplace

D. A rose bush in the front garden

A and C
B and D
B and C
C and D

Answer 75

B and C

Question 76

Alex, desperate to pay for her husband’s loan. They find Sharky’s Loans LTD. . She becomes concerned that the amount of the loan is to harsh and unreasonable. Which statue can Alex look to for relief?

The business Practices and Consumer Protection Act
The Real Estate Service Act
The Mortgage Broker Act
The Interest Act

Answer 76

The business Practices and Consumer Protection Act

Question 77

Your client wants to purchase a home that is on the market for $650,000. She has gone to her bank and asked about the maximum loan available to her. The lending of value of her house has been determined to be $630,000. She earns $110,000 per year and annual taxes on the property are $3,200. Subject to a loan-to-value ratio of 80% and a gross debt ration of 32%, the bank is willing to lend your client money at J12=4% with 25 amortization and monthly payments. What is the maximum loan (rounded to the nearest dollar) that your client will be able to arrange?

$505,207
$504,000
$497,605
$520,000

Answer 77

$504,000