topic 7&8 Flashcards
When arranging a mortgage, at which point does the legal charge take effect?
A. before exchange of contracts
B. on exchange of contracts
C. on completion
D. after completion
C. on completion
What are the arrangements for paying any Stamp Duty Land Tax due on completion of a house sale?
A. The vendor’s solicitor is responsible for payment and will then invoice his client for the amount paid.
B. The buyer’s solicitor is responsible for payment of stamp duty land tax.
C. The buyer will receive a bill from HMRC after the sale has completed.
D. The vendor will pay the amount due direct to his solicitor.
B. The buyer’s solicitor is responsible for payment of stamp duty land tax.
Denise is buying a property from Karen, and Denise’s lender is about to release the advance. To whom will the advance be released initially?
A. Karen
B. Denise
C. Karen’s solicitor
D. Denise’s solicitor
D. Denise’s solicitor
Ray and Barbara are selling their house and wish to take the garden shed and gazebo to their new property. Which of the following statements is correct?
A. The items can be removed but only if this was stated in the sales particulars.
B. The items can be removed if the intention to do so was specifically included in the sale contract.
C. The items can be removed without giving any reason or stated intention.
D. The items form part of the land being sold and cannot be removed.
B. The items can be removed if the intention to do so was specifically included in the sale contract.
Having considered Arthur’s needs, his mortgage adviser Alison is unable to offer a suitable mortgage product from within the range considered. What recommendation if any should she make?
A. None
B. The next best product in terms of cost
C. The next best product in terms of features
D. The next best product in terms of risk
A. None
Which of these individuals or couples could accurately be identified as being ‘high net worth’?
A. John who earns £200,000 a year and his wife Karen who earns £150,000.
B. Paul who has a stocks and shares portfolio worth £3.5m.
C. Keith who has £2.5m in savings and his wife Paula who has £2.2m in savings.
D. Jenny who earns £270,000 per annum.
B. Paul who has a stocks and shares portfolio worth £3.5m.
Which of the following is not required in any initial disclosure document?
A. Details about any fees to be charged on the customer
B. The mortgage product recommended
C. The adviser’s status
D. Whether any commission is being received by a third party
B. The mortgage product recommended
Sara, a mortgage adviser on a face to face basis, has been asked to recommend a mortgage for Ian and Jan. She has identified what she feels is the most suitable mortgage and has a European Standardised Information Sheet (ESIS) for the couple. What must she do before Ian and Jan make an application?
A. Explain the importance of reading and understanding the ESIS and explain the key details.
B. Explain that the ESIS is an approximate guide to costs which may end up higher.
C. Tell the customer that they will send a copy of this to them within 5 working days.
D. There are no formal requirements.
A. Explain the importance of reading and understanding the ESIS and explain the key details.
A European Standardised Information Sheet (ESIS) is given to enable customers to check that the proposed mortgage is suitable for their needs. What information would not be contained in the ESIS?
A. Details of who the lender is.
B. Details of associated investment vehicles.
C. Details of the overall cost of the mortgage.
D. The interest rate on the mortgage.
B. Details of associated investment vehicles.
MCOB 4 and 4A outlines the rules relating to advising and selling standards. Which one of the following is not covered within the rules on advising and selling?
A. Inducements
B. Initial Disclosure
C. Suitability of advice
D. The status of the adviser
A. Inducements
A fax which is sent as an invitation to take out a mortgage would, under the Mortgage Conduct of Business Rules, be classified as a:
A. non-real time financial promotion.
B. real-time financial promotion.
C. solicited invitation.
D. unsolicited invitation.
A. non-real time financial promotion.
Which of the following would be able to arrange an execution only mortgage without first receiving advice?
A. any customer who requests it
B. high net worth individuals
C. those who are purchasing property under the ‘right to buy’ legislation
D. those who are seeking to consolidate debt by remortgaging
B. high net worth individuals
