Question 1

A mortgage need not require registration of a discharge to cancel the mortgage debt.

Accepted Answer

A) True 
 B)False

Question 2

In a foreclosure,even after the final day for redemption,the mortgagee may successfully sue the mortgagor for the debt

Accepted Answer

A) until the six-month period has expired. 
B) until the one-month period has expired. 
C) until the period prescribed in the Statute of Limitations runs out. 
D) after the property has been sold to another party. 
E) only if the mortgagor has sufficient funds to pay the debt. 
A) until the six-month period has expired. 
B) until the one-month period has expired. 
C) until the period prescribed in the Statute of Limitations runs out. 
D) after the property has been sold to another party. 
E) only if the mortgagor has sufficient funds to pay the debt.

Question 3

The right of the mortgagee,given by a statute or the terms of the mortgage,to sell the property upon default is called

Accepted Answer

A) an equitable sale. 
B) legal sale. 
C) a power of sale. 
D) an equitable right to sell. 
E) sale by court. 
A) an equitable sale. 
B) legal sale. 
C) a power of sale. 
D) an equitable right to sell. 
E) sale by court.

Question 4

George owns an acre of land and severs,or divides,it into building lots.Before George can build on the lots he requires money to finance the construction costs,so he goes to his bank and gets first mortgage financing in the amount of $1.5 million and the bank registers the mortgage on all the building lots.If George finishes construction on one building lot,sells it,and pays down the bank's mortgage,the bank will give George

Accepted Answer

A) a complete assignment of the mortgage. 
B) a complete discharge of the mortgage. 
C) a partial assignment of the mortgage. 
D) a reconveyance of legal title to all the lots. 
E) a partial discharge of the mortgage. 
A) a complete assignment of the mortgage. 
B) a complete discharge of the mortgage. 
C) a partial assignment of the mortgage. 
D) a reconveyance of legal title to all the lots. 
E) a partial discharge of the mortgage.

Question 5

Which of the following is NOT a typical stage in a real estate transaction?

Accepted Answer

A) cleaning the premises 
B) acceptance of the offer 
C) submission of an offer to purchase 
D) preparation of documents,including a statement of adjustments,by the seller 
E) the submission of requisitions by the purchaser's solicitor 
A) cleaning the premises 
B) acceptance of the offer 
C) submission of an offer to purchase 
D) preparation of documents,including a statement of adjustments,by the seller 
E) the submission of requisitions by the purchaser's solicitor

Question 6

Mary is buying a home for the first time.She has $200 000.00 in her bank account and has been pre-approved for a $100 000.00 mortgage.Mary now finds a house priced at $300 000.00 and based on her calculation of the money in her account and the pre-approved mortgage,she enters into an agreement of purchase and sale for it with its owner.In this case,

Accepted Answer

A)  Mary's calculation is not correct,and she will probably not have enough money to close the transaction. 
B) Mary's calculation is correct,and she will probably have enough money to close the transaction. 
C) Mary's calculation is correct,and she will definitely have enough to close the transaction. 
D) Mary's calculation is correct,and she will probably have enough money to close the transaction 
E) none of the above 
A)  Mary's calculation is not correct,and she will probably not have enough money to close the transaction. 
B) Mary's calculation is correct,and she will probably have enough money to close the transaction. 
C) Mary's calculation is correct,and she will definitely have enough to close the transaction. 
D) Mary's calculation is correct,and she will probably have enough money to close the transaction 
E) none of the above

Question 7

Under the land titles system,a first mortgage transfers legal title in the mortgage land to the mortgagee.

Accepted Answer

A) True 
 B)False

Question 8

Use the fact situation in Q1 to answer the related question that follows. Given the time of registration of the Royal Bank and the TD Canada Trust mortgages,

Accepted Answer

A) the Royal Bank mortgage is a first mortgage. 
B) the TD Canada Trust mortgage is a first mortgage. 
C) both mortgages rank equally. 
D) the TD Canada Trust mortgage is void as against the Royal Bank mortgage. 
E) the Royal Bank mortgage is void as against the TD Canada Trust mortgage. 
A) the Royal Bank mortgage is a first mortgage. 
B) the TD Canada Trust mortgage is a first mortgage. 
C) both mortgages rank equally. 
D) the TD Canada Trust mortgage is void as against the Royal Bank mortgage. 
E) the Royal Bank mortgage is void as against the TD Canada Trust mortgage.

Question 9

A lender who accepts an interest in land as security for a loan is called

Accepted Answer

A) a mortgagor. 
B) a insured. 
C) a mortgagee. 
D) a pledgor. 
E) a lender. 
A) a mortgagor. 
B) a insured. 
C) a mortgagee. 
D) a pledgor. 
E) a lender.

Question 10

Use the fact situation in Q1 to answer the related question that follows. Assuming that both the Royal Bank and the TD Canada Trust mortgage were registered on title to George's home,the equity in the home would be

Accepted Answer

A) $450 000.00 
B) $250 000.00 
C) $700 000.00 
D) $50 000.00 
E) $750 000.00 
A) $450 000.00 
B) $250 000.00 
C) $700 000.00 
D) $50 000.00 
E) $750 000.00

Question 11

Explain the difference between equity of redemption and equity.

Accepted Answer

The equity of redemption is th

Question 12

Which of the following is NOT a covenant of the mortgagor?

Accepted Answer

A) to pay the debt and accrued interest,at the stipulated times 
B) to pay the taxes on the land the buildings 
C) to execute the necessary discharge of the mortgage upon payment in full 
D) to keep the premises in a reasonable repair 
E) to keep the property adequately insured in the name of the mortgagee 
A) to pay the debt and accrued interest,at the stipulated times 
B) to pay the taxes on the land the buildings 
C) to execute the necessary discharge of the mortgage upon payment in full 
D) to keep the premises in a reasonable repair 
E) to keep the property adequately insured in the name of the mortgagee

Question 13

Explain the concept of a mortgage.

Accepted Answer

A mortgage under the common law is a con

Question 14

If a mortgagee does not register the mortgage,the mortgagee

Accepted Answer

A) loses the right to foreclose on the property. 
B) loses the right to sue the mortgagor. 
C) cannot enforce the mortgage against the property if it is sold. 
D) loses the right to have a court-supervised sale. 
E) all of the above 
A) loses the right to foreclose on the property. 
B) loses the right to sue the mortgagor. 
C) cannot enforce the mortgage against the property if it is sold. 
D) loses the right to have a court-supervised sale. 
E) all of the above

Question 15

The date for completing the sale of a real estate transaction is known as

Accepted Answer

A) the discharge date. 
B) the mortgage date. 
C) the closing date. 
D) the equitable date. 
E) the final date. 
A) the discharge date. 
B) the mortgage date. 
C) the closing date. 
D) the equitable date. 
E) the final date.

Question 16

Upon a sale of property,the document that sets out the debits and credits that must be adjusted to arrive at the proper amount to be paid on closing is called the

Accepted Answer

A) requisitions. 
B) draft deed. 
C) statement of adjustments. 
D) charge. 
E) charge/mortgage. 
A) requisitions. 
B) draft deed. 
C) statement of adjustments. 
D) charge. 
E) charge/mortgage.

Question 17

Under the registry system,when a first mortgagee gives a discharge of its mortgage to the mortgagor,the effect of the discharge if registered is to

Accepted Answer

A) act to reconvey legal title of the land to the mortgagor. 
B) acknowledge that the mortgage debt has been paid in full. 
C) act as a cancellation of the encumbrance on the land. 
D) act to bring all rights and remedies of the mortgagee to an end. 
E) all of the above 
A) act to reconvey legal title of the land to the mortgagor. 
B) acknowledge that the mortgage debt has been paid in full. 
C) act as a cancellation of the encumbrance on the land. 
D) act to bring all rights and remedies of the mortgagee to an end. 
E) all of the above

Question 18

A mortgage that can be paid off before its maturity date without penalty or bonus is a closed mortgage.

Accepted Answer

A) True 
 B)False

Question 19

Use the fact situation in Q1 to answer the related question that follows. Assuming that the Royal Bank mortgage was to be a first mortgage,in Ontario,

Accepted Answer

A) it would transfer legal title of George's house to the Royal Bank. 
B) it would simply be a lien on encumbrance on title to George's home. 
C) it would transfer an equitable interest in George's house to the Royal Bank. 
D) it would transfer the equity in George's house to the Royal Bank. 
E) it would transfer the equity of redemption in George's house to the Royal Bank. 
A) it would transfer legal title of George's house to the Royal Bank. 
B) it would simply be a lien on encumbrance on title to George's home. 
C) it would transfer an equitable interest in George's house to the Royal Bank. 
D) it would transfer the equity in George's house to the Royal Bank. 
E) it would transfer the equity of redemption in George's house to the Royal Bank.

Question 20

Explain why,in difficult economic times,it might be wiser for a mortgagee to foreclose rather than to sell the property.

Accepted Answer

In difficult economic times,not only doe

Exam 23: Mortgages of Land and Real Estate Transactions

A mortgage need not require registration of a discharge to cancel the mortgage debt.

In a foreclosure,even after the final day for redemption,the mortgagee may successfully sue the mortgagor for the debt

The right of the mortgagee,given by a statute or the terms of the mortgage,to sell the property upon default is called

Which of the following is NOT a typical stage in a real estate transaction?

Under the land titles system,a first mortgage transfers legal title in the mortgage land to the mortgagee.

Use the fact situation in Q1 to answer the related question that follows. Given the time of registration of the Royal Bank and the TD Canada Trust mortgages,

A lender who accepts an interest in land as security for a loan is called

Use the fact situation in Q1 to answer the related question that follows. Assuming that both the Royal Bank and the TD Canada Trust mortgage were registered on title to George's home,the equity in the home would be

Explain the difference between equity of redemption and equity.

Which of the following is NOT a covenant of the mortgagor?

Explain the concept of a mortgage.

If a mortgagee does not register the mortgage,the mortgagee

The date for completing the sale of a real estate transaction is known as

Upon a sale of property,the document that sets out the debits and credits that must be adjusted to arrive at the proper amount to be paid on closing is called the

Under the registry system,when a first mortgagee gives a discharge of its mortgage to the mortgagor,the effect of the discharge if registered is to

A mortgage that can be paid off before its maturity date without penalty or bonus is a closed mortgage.

Use the fact situation in Q1 to answer the related question that follows. Assuming that the Royal Bank mortgage was to be a first mortgage,in Ontario,

Explain why,in difficult economic times,it might be wiser for a mortgagee to foreclose rather than to sell the property.

Law, society, and Business

The Machinery of Justice

Government Regulation of Business

The Law of Torts

Professional Liability: the Legal Challenges

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration and Intention

Formation of a Contract: Capacity to Contract and Legality of Object

Grounds Upon Which a Contract May Be Set Aside: Mistake and Misrepresentation

Writing and Interpretation

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

Breach of Contract and Its Remedies

Sale of Goods and Consumer Contracts

Bailment and Leasing

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

Negotiable Instruments

Intellectual Property

Interests in Land and Their Transfer

Landlord and Tenant

Sole Proprietorships and Partnerships

The Nature of a Corporation and Its Formation

Corporate Governance: the Internal Affairs of Corporations

Corporate Governance: External Responsibilities

Secured Transactions

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