Question 1

Usually there is no difference in the rights and remedies afforded to a first and second mortgagee in their respective mortgages.

Accepted Answer

A) True 
 B)False

Question 2

An order by a court that ends the right of the mortgagor to redeem the mortgage within a fixed time is called

Accepted Answer

A) an injunction. 
B) the equity of redemption. 
C) a foreclosure. 
D) a writ. 
E) damages. 
A) an injunction. 
B) the equity of redemption. 
C) a foreclosure. 
D) a writ. 
E) damages.

Question 3

What is a reverse mortgage? Why might a reverse mortgage be an advantage to an older person?

Accepted Answer

People can give mortgages on their own h

Question 4

Foreclosure can only be obtained by commencing an action at law for foreclosure.

Accepted Answer

A) True 
 B)False

Question 5

A mortgagee rarely takes possession of the property upon default.It usually waits until a final order of foreclosure has been obtained.The main reasons for a mortgagee not going into possession include all of the following EXCEPT

Accepted Answer

A) it generally wants its money rather than the mortgagor's property. 
B) it would prefer to encourage the mortgagor to pay off the debt. 
C) its possession would remain uncertain since the mortgagor might at any moment tender payment,redeem his interest and demand possession. 
D) it must account for any benefit it receives from the occupation of the land and deduct it from the amount owing if the mortgagor ultimately tenders payment. 
E) it gives up any rights it may have to obtain a final order of foreclosure. 
A) it generally wants its money rather than the mortgagor's property. 
B) it would prefer to encourage the mortgagor to pay off the debt. 
C) its possession would remain uncertain since the mortgagor might at any moment tender payment,redeem his interest and demand possession. 
D) it must account for any benefit it receives from the occupation of the land and deduct it from the amount owing if the mortgagor ultimately tenders payment. 
E) it gives up any rights it may have to obtain a final order of foreclosure.

Question 6

Briefly describe the relevant factors that dictate whether a mortgagee requests a sale or forecloses in circumstances where a mortgage goes into default.

Accepted Answer

When faced with a mortgage default,the v

Question 7

Under the federal legislation entitled Proceeds of Crime (Money Laundering)and Terrorist Financing Act,professionals and financial institutions are required to report

Accepted Answer

A) suspicious transactions or large cash payments of $10,000 or more. 
B) mortgages registered in the names of family members. 
C) all documentation confirming clients' identities. 
D) the names and addresses of non-Canadian clientele. 
E) bank accounts and trust statements of any lawyer under suspension. 
A) suspicious transactions or large cash payments of $10,000 or more. 
B) mortgages registered in the names of family members. 
C) all documentation confirming clients' identities. 
D) the names and addresses of non-Canadian clientele. 
E) bank accounts and trust statements of any lawyer under suspension.

Question 8

Assume that you are a developer of land who wants to purchase some land and divide it into building lots and then build and sell homes on them.Explain the type of mortgage that you will obtain and how it will permit you to sell the homes you build.

Accepted Answer

In such a case,it is common for a develo

Question 9

In order to prevent mortgage fraud,as between a bank or finance company that is in the business of giving mortgages and the lawyer who acts on the mortgage,who do you think might have a higher duty to ensure that the borrowers are not imposters,and is this the case in the real world?

Accepted Answer

Usually it is the bank or finance compan

Question 10

A mortgagee is

Accepted Answer

A) a preferred creditor. 
B) a secured creditor. 
C) an unsecured creditor. 
D) a general creditor. 
E) a subsequent creditor. 
A) a preferred creditor. 
B) a secured creditor. 
C) an unsecured creditor. 
D) a general creditor. 
E) a subsequent creditor.

Question 11

Lawyers are covered by the Proceeds of Crime (Money Laundering)and Terrorist Financing Act since their work involves receiving large sums of money from their clients.

Accepted Answer

A) True 
 B)False

Question 12

William lists his rental property for sale.He recently learned that the property was infested with termites and wants to sell it before having to spend any money fixing the problem.Briefly discuss the difference between a latent defect and a patent defect and whether or not William is required to disclose the issue to prospective purchasers.

Accepted Answer

A patent defect is more common.It is a d

Question 13

Who is a general creditor?

Accepted Answer

A general creditor i

Question 14

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 15

Explain the concept of a mortgage.

Accepted Answer

A mortgage under the common law is a con

Question 16

What should a prudent mortgagee do when a mortgagor defaults on the mortgage and abandons the mortgaged property?

Accepted Answer

In such a case,to protect the value of t

Question 17

Today,with an increase in instances of mortgage fraud,there are times when homeowners can actually lose their property.Explain why recourse to the Land Titles Assurance Funds of various provinces may be of little value to such homeowners.

Accepted Answer

Mortgage fraud can result in a mortgagee

Question 18

Explain why,when there is a first mortgage on title of property,interest rates are higher for subsequent mortgages given on the same property.

Accepted Answer

The reason is that a subsequent mortgage

Question 19

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 20

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 likely not correct because real estate commissions are usually paid on top of the sale price. 
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 likely not correct because real estate commissions are usually paid on top of the sale price. 
E) none of the above

Exam 23: Mortgages of Land and Real Estate Transactions

Usually there is no difference in the rights and remedies afforded to a first and second mortgagee in their respective mortgages.

An order by a court that ends the right of the mortgagor to redeem the mortgage within a fixed time is called

What is a reverse mortgage? Why might a reverse mortgage be an advantage to an older person?

Foreclosure can only be obtained by commencing an action at law for foreclosure.

A mortgagee rarely takes possession of the property upon default.It usually waits until a final order of foreclosure has been obtained.The main reasons for a mortgagee not going into possession include all of the following EXCEPT

Briefly describe the relevant factors that dictate whether a mortgagee requests a sale or forecloses in circumstances where a mortgage goes into default.

Under the federal legislation entitled Proceeds of Crime (Money Laundering)and Terrorist Financing Act,professionals and financial institutions are required to report

Assume that you are a developer of land who wants to purchase some land and divide it into building lots and then build and sell homes on them.Explain the type of mortgage that you will obtain and how it will permit you to sell the homes you build.

In order to prevent mortgage fraud,as between a bank or finance company that is in the business of giving mortgages and the lawyer who acts on the mortgage,who do you think might have a higher duty to ensure that the borrowers are not imposters,and is this the case in the real world?

A mortgagee is

Lawyers are covered by the Proceeds of Crime (Money Laundering)and Terrorist Financing Act since their work involves receiving large sums of money from their clients.

Who is a general creditor?

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

Explain the concept of a mortgage.

What should a prudent mortgagee do when a mortgagor defaults on the mortgage and abandons the mortgaged property?

Today,with an increase in instances of mortgage fraud,there are times when homeowners can actually lose their property.Explain why recourse to the Land Titles Assurance Funds of various provinces may be of little value to such homeowners.

Explain why,when there is a first mortgage on title of property,interest rates are higher for subsequent mortgages given on the same property.

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

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

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Sale of Goods and Consumer Contracts

Bailment and Leasing

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

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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

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