You are on page 1of 40

PHASE 2 EXAMS EASY WAY TO PASS-----1

Q1. At what point in time does the person who holds a future estate obtain a fee
simple interest?

A) When the person who holds the future estate sells his/her interest.

B) When a person who holds the future estate dies.

C) Never, because it is a future estate.

D) When the person who holds the life estate dies-----

Q2.Which of the following statements is correct with regard to a matrimonial


home?

A ) In circumstances where the spouses own two or more properties, only one of the
properties can be a matrimonial home.

B ) According to the Family Law Act, a property is a matrimonial home only if it has
been designated as a matrimonial home.

C ) Unless they have designated a property as the matrimonial home, any property the
spouses are occupying as their family residence would be a matrimonial home--------

D ) The Family Law Act states that spouses are always joint tenants of a matrimonial
home.

Q3.What is the purpose of a post or column in residential construction?

A) It carries the load of a beam down to a footing---------

B) It provides a horizontal surface for attaching a sill plate.

C) It is used as a substitute for bridging.

D) It provides lateral support for the foundation wall.

Q4.In addition to supporting rafters, a knee wall has an additional function. A


knee wall may also:

A) support a large piece of heavy furniture such as a piano.

B) support an upper floor framing wall that is offset by more than 12 inches.

C) act as a brace to prevent a foundation wall from being deflected inwards.

D) act as the framing for the wall on the upper floor of a one and a half storey house--
Q5.Based on the condominium concept in Ontario, select the statement that
correctly completes the following sentence:

When a condominium is created:

A) the condominium corporation holds title to all of the units on behalf of the unit
owners.

B) the common elements are owned by the condominium corporation.

C) the owners of the units share an undivided tenant in common interest in the
common elements-----

D) a corporation is formed for the purpose of limiting the liability of the unit owners.

Q6.With respect to Planning legislation in Ontario, which of the following


statements is correct?

A) The purpose of the Planning act is to restrict the involvement of municipalities in


the planning process.

B) The Planning Act ensures that both upper tier and lower tier municipalities are
involved in the planning process--------

C) The Planning Act gives the Ontario Municipal Board the responsibility for creating
and implementing all Official Plans in Ontario.

D) The federal government is not involved in any matters related to land use.

Q7.Mrs. Thatcher owns a home with a finished basement which she'd like to
convert to an accessory apartment.

Which of the following is one the requirements she would have to comply with in
order to do so?

A ) An electrical inspection of the apartment to ensure compliance with the Electrical


Safety Code and Fire Safety Code-------

B) Enter into a site plan agreement with the municipality.

C) Proof of a signed lease with a tenant for a minimum term of one year.

D ) A physical inspection of the apartment by an authorized representative of the


Residential Tenancies Act.
Q8.Some mortgages are arranged through a mortgage broker. Which of the
following statements is correct as it relates to mortgage brokers?

A ) Mortgage brokers are restricted by law to arranging conventional mortgages only,


not high ratio mortgages.

B ) For most residential mortgages involving a mortgage broker, the mortgage


broker's fee is paid by the lender------

C ) The Mortgage Brokers, Lenders and Administrators Act only permits mortgage
brokers to arrange residential mortgages.

D ) The legislation regulating mortgage brokers does not permit mortgage brokers to
accept fees from borrowers.

Q9. When an agency relationship is created, the principal owes the agent certain
duties. Which of the following statements best describes these duties?

A) The principal must take responsibility for the lawful acts done by the agent on
behalf of the principal and pay the agent for the services provided---------

B) The principal owes indemnification which means the principal must pay the agent
for the services rendered.

C) The principal must act with loyalty and in good faith and protect the interests of the
agent.

D) The principal must act in good faith and fully disclose all information pertaining to
the transaction to the agent.

Q10.Property law in Ontario permits restrictive covenants (private deed


restrictions) to be placed on the title of real property.

Which of the following statements describes a reason for including a restrictive


covenant in a deed?

A) To allow a property to be used for a purpose that the zoning bylaws do not permit.

B) For the municipality to enforce zoning restrictions.

C) To create a mutual drive with the neighbouring property.

D) To prevent a property from being used for a purpose that is permitted by the
municipal zoning by law--------
Q11. Which of the following statements is (are) correct as it relates to the function
of a foundation?

i.To transmit the weight of the structure from the above-grade walls and floors
down to the footings.

ii. To resist the lateral pressure of the soil on the outside of the basement and act
as a retaining wall.

iii. To provide a continuous, uninterrupted surface on which to attach


eavestroughing.

iv. To carry the weight of the structure below the frost line and prevent frost
heaving.

A) Only statements ii, iii, and iv. are correct.

B) Only statements ii and iii are correct.

C) Only statements i and ii are correct.

D) Only statements i, ii And IV. Are correct---------

12. Mr. and Mrs. Patel owns a property on a 50 foot wide lot and would like to
construct an 8 foot wide garage beside the house at the end of their driveway.
The distance from the house to the side lot line is 12 feet. On checking with the
local municipality, they discover that the zoning by-law calls for a minimum 6 foot
side yard set back from any structure.

What would the Patel have to do in order to legally build the garage?

A) Enter into an encroachment agreement with the neighbour.

B) Make application to the local municipal council for a non-conforming use.

C) Since there is already a driveway on the side of the house, construction of the
garage is automatically permitted.

D) Make application to the local Committee of Adjustments for a minor variance

13.Salesperson Rice of Maple Realty Inc. is working with a buyer/client named Mr.
Frost. Salesperson Rice sells Mr. Frost a property at 257 Oak Lane listed by
Salesperson Daigle of Ace Realty Ltd.

Based on this information, identify the agency relationships and some of the
types of duties/obligations owed by the Brokerages in this scenario.
A) Both Ace Realty Ltd. and Maple Realty Inc. represent the seller and owe fiduciary
obligations to the seller. Both brokerages are treating the buyer as a customer and owe
him a limited third party duty of care.

B) Maple Realty Inc. is acting as a sub-agent and owes fiduciary obligations to both
the buyer and seller. Ace Realty Ltd. represents the seller, owes fiduciary obligations to
the seller and a limited third party duty of care to the buyer.

C) Maple Realty Inc. represents the buyer, owes fiduciary obligations to the buyer and
a limited third party duty of care to the seller. The seller is represented by Ace Realty
Ltd. Ace Realty Ltd. owes fiduciary duties to the seller and a limited third party duties of
care to the buyer--------

D) Ace Realty Ltd. is acting in a multiple representation capacity and owes fiduciary
obligations to both the buyer and the seller. Maple Realty Inc. represents the buyer and
owes him fiduciary obligations.

14.Salesperson Norris is working with a buyer who has signed a buyer customer
service agreement with Norris's brokerage. The buyer is about to sign an
agreement of purchase and sale on a property backing onto a vacant lot. Prior to
signing, the buyer asks Norris what is going to be built on the vacant lot. Norris is
not sure what is going to be built but assures the buyer that it will be just another
house.

Which of the following statements best describes Norris's conduct?

A) Norris has breached the obligation of a duty of care---------

B) Norris is under no obligation to make an inquiry as the buyer is a customer.

C) It is the seller's responsibility to disclose that information, not the salesperson's.

D) It is not Norris's responsibility to find out due to the concept of "buyer beware".

15. According to REBBA 2002 a buyer or seller must be given notice when the
registrant is one of the parties to the transaction.

Which of the following statements correctly applies to this situation?

A) This requirement applies when the registrant is buying a property but not when the
registrant is selling.

B) The notice must include full disclosure of all facts within the registrant's knowledge
that affect or will affect the value of the real estate---------
C) The requirement does not apply if a corporation owned by the registrant is the
purchaser of the property.

D) The requirement does not apply if the property is not listed with the brokerage.

16. Which of the following would be the correct statement regarding the
relationship between a life estate and future estate.

A) The holder of a future estate takes ownership of land when the holder of life
estate dies----.
B) A life estate and future estate are always held by the same person
C) When a future estate and life estate are combined they equal a leasehold estate
D) The person who holds a life estate can sell the property without the consent of
the person holding a future estate

17. Tenant in common ownership means that there is

A) The existence of four unities


B) Ownership by married couple rather than by unrelated people
C) A leasehold interest in a property by two or more persons or entities
D) No right of survivorship------

18. Over a period of hundreds of years of the Feudal System of Tenure was
replaced with the concept of estates with respect to property rights and laws.
This means that:-

A) In modern times there are no limitations on the right of ownership to property


B) There were more rights of ownership of property for individuals under the feudal
system, than the rights of ownership that exist today
C) Everyone who owns the land in Ontario is a tenant of the Crown and must pay
the rent to the Govt. Of Ontario
D) The rights of ownership that property owners enjoy today were acquired over
hundreds of years------

19. John and Jane are going to get married. John owns an expensive waterfront
home and they are going to live there together. How can John prevent Jane from
acquiring half of the value of the matrimonial home if marriage breaks up?

A) John can register a declaration on the title of the property that he is the sole
owner
B) A valid marriage contract can prevent a spouses right to possession of the
matrimonial home ------
C) John is the sole owner of the property before the marriage. So even if they move
into it once they are married, it will not become a matrimonial home
D) John can designate a different property as matrimonial home

20. Susan James, a non-owner spouse, has possessory rights to the matrimonial
home.

A) Provided that such occupancy does not extend for more than 60 days from a
divorce date
B) Provided she is either legally married or cohabitating
C) And also has the right to any equalised value arising from the sale of that home,
unless a valid domestic contract provides otherwise ------
D) Which cannot be altered by agreement, unless there is a marriage breakup

21. Fee simple with conditions is:-

A) Also known as a remainder


B) A type of estate in which fee simple can be terminated under certain situations----
C) Frequently found in todays real estate market
D) A type of estate that is consistently conformed to law and public policy.

22.Mr. and Mrs. MacMillan are divorcing. When married, they signed a marriage
contract that excluded two income properties that Mrs. Macmillan inherited from
her fathers estate. During the marriage, the couple acquired two more income
properties and the husband bought a fifth income property in his own name.
Accordingly, the equalization of property will:

A) Exclude all five income properties, since the equalization process only takes into
consideration a matrimonial home
B) Include all five income properties
C) Include the two income properties acquired during the marriage, but exclude the
inherited properties and the fifth property bought by the husband
D) Be limited to three properties acquired by the couple during the marriage-----

23. James and Helen Best, as husband and wife, own a house in Oakville, a
cottage in Georgian Bay and a timeshare in Collingwood. James, Helen and their
two kids regularly use these properties for their personal enjoyment. For purpose
of the Family Law Act and issues concerning matrimonial homes:-

A) Only the Oakville home can be designated as a matrimonial home


B) The Oakville home, as well as Georgian Bay cottage and the timeshare in
Collingwood, can be designated as matrimonial homes-----
C) Only the Oakville home and the cottage in Georgian Bay can be designated as
matrimonial homes
D) The cottage would be excluded as it is deemed to be recreational property and
therefore cannot be designated as matrimonial home

24. The term fractional interests with respect to property ownership refer to:-

A) Various interests that are part of the total bundle of rights---------


B) The right to divide your land without government approval
C) Purchasing an adjacent property to create a large property
D) The interest the municipality did not have them levy taxes

25. An easement is:-

A) Always written in the deed of a property for it to be enforceable


B) The right to purchase crops, trees, or gravel from the fee simple owner
C) The right of the land owner over the land of another owner for a specific purpose
rather than general use -------
D) A restriction in the deed of the property preventing the property from being used
for a specific purpose

26. Chattels and fixtures are often included in the sale of the property. Chattels
can be best described as:-

A) Property that is permanently attached to a building


B) Personal or movable items that are not part of real property-----
C) Items that are included with the property unless they are listed with the
agreement of purchase and sale
D) Items with a property that are leased rather than owned

27. The purpose and land descriptions single front township was first divided
into:-

A) Concession---
B) Sections
C) Parts of reference plan
D) Subdivision

28. A condominium is often said to be a creation of Statue. With this in mind, how
would the title of a condominium registered?

A) Since the registry offices are based on a land description, only the land and
common elements have deed that can be registered
B) If the municipality has both land registry system and land titles system in
operation, new condominium would be registered
C) Each unit would be registered in the registry and land titles systems by
depositing an exclusive use agreement
D) Once Declaration and Description is registered, each unit can be registered
with a separate deed-------

29. Reference Plans were introduced to:-

A) Help in metes and bounds


B) It is paper based
C) Readily available
D) Show a graphic illustration of the property----

30. The Association of Ontario Land Surveyors has determined that a Survey
consists of four components. These are

A) Research, Measurement, Monumentation, Plant and/ Report-----


B) Measurement, a certificate, drawing, a fee schedule
C) Measurement, monumentation, sketch and report
D) Boundaries, angles, drawings, metes and bounds description

31. One of the key differences between a Registry system VS. Land Title system
is that:-

A) The registry system is the newer of the two systems and operates on mirror,
curtain and insurance principle
B) All new subdivisions including new condominium projects must be registered
under registry system
C) Under Land Title System the title to the property cannot be acquired by any
length of possession or prescription (adverse possession) -------
D) In a sale involving a property registered under the land title system the title must
extend to at least 60 years

32. Which of the following statement correctly applies to the registration of


documents under Land Registration Act?

A) The Act provides for implied covenants for the registration of the personal
mortgage and a transfer of title---------
B) Under the Act documents can be registered in the registry system but not under
land title system
C) There are six registration documents created by the registry system, but they are
not used in the land title system
D) When a mortgage is discharged a Schedule to the charge mortgage of land is
filed

33. The main purpose of Ontario Planning Act is:-

A) To eliminate restrictions on the use and development of land


B) To provide for orderly development of land and to control land use on an ongoing
basis----
C) To establish a provincial committee of adjustments for all over Ontario
D) To ensure the municipality controls the subdivision of land rather than the
province

34. Which of the following statement correctly describes the function of a


Committee of Adjustments:-

A) It has only one responsibility.. To grant minor variances from the zoning-by-laws
B) It grants minor variances, determines whether or not a non- conforming use is
legal and hears appeals against sub-division approvals
C) It is responsible for reviewing official plans, enforcing zoning by-laws and hearing
appeals of decisions relating to consents to sever properties
D) It grants minor variances controls and continuance of non-conforming use and
grants consents to sever properties-----

35. Which of the following statements correctly describes the Planning Act
controls for the division of the land?

A) An owner cannot apply for severance until they have owned the land for at least
21 years
B) A consent is typically obtained when land is being divided into 8 parcels or less
C) An owner can sell his entire parcel of land or else get a consent for severance or
sub-division plan approved -----
D) An owner can legally divide their land by depositing a reference plan in the
registry office

36. Under what circumstances can a non-conforming use be legal?

A) If the use of the property was established before zoning by-law was enacted ------
B) If it was constructed in accordance with and in compliance with both fire code
and building code
C) If it is minor variance from the requirements of the zoning by-laws
D) If it was converted to a non- conforming use after the zoning by-law was put in
place
37. In which way does the local municipal government enforce provisions of the
Ontario Building Code:-

A) By creating and operating a Committee of Adjustments to ensure that the


building code is complied with
B) By enforcing zoning by-laws which include the minimum standards for building
constructions
C) By ensuring that the required retrofit provisions for all buildings are completed-----
D) By imposing site plan controls , issuing building permits, applying inspections
procedures to ensure construction is taking place in accordance with the permit

38. What is the difference between one zone plain and two zone flood plain?

A) One zone flood plain has a flood way and two zone flood plain does not
B) A two zone flood plain may permit conditional development subject to
restrictions---
C) A two zone flood plain is on a water shed but one zone flood plain does not
D) A two zone flood plain involves provincial wet lands but one zone flood plain
does not

39. The existence of shelter tubes in a dwelling is usually an indication that

A) Additional drainage has been added


B) The foundation support was inadequate
C) Termites are present------
D) The property has not been acquired

40. With regard to roof where is the flashing least likely to be found?

A) Where a chimney protrudes through the shingled roof


B) Between each row of shingles------
C) At joints where dissimilar materials meet
D) Where roof line changes directions

41. What is the built up roof and when is it frequently used?

A) It is a roof with either slate or clay titles and is used in residential construction
B) It is a roof with steep slope and most commonly used in residential construction
C) It is a low slope roof and is used in locations where there is heavy snow
accumulations each winter
D) It is a roof constructed of multiple layers of materials and is commonly used in
industrial buildings------
42. The main function of a brick veneer wall finishes is to?

A) Provide a surface to support the wall framing


B) Provide an attractive and durable exterior finish ------
C) Transmit the weight of the roof to the foundation and footing
D) Support windows and floor frame

43. Two 60 amp fuses in an electrical disconnect box normally indicate

A) 120 amp service


B) 60 amp service-------
C) Aluminum wiring
D) Copper wring

44. The most commonly used supply piping for water in residential construction
is

A) Aluminum
B) Choric heated iron
C) Led
D) Copper------

45. Which one of the following is the correct statement as it relates to R-Value of
insulation

A) There are no regulations concerning minimum requirements for insulation in a


building
B) Higher the R-Value rating of the insulation the greater the resistance to heat
transfer-----
C) R-Value is expressed as a ratio between the cost of the insulation and its
effectiveness of preventing heat loss
D) All insulations have the same R-Value rating per inch. The difference exists in the
varying thickness of the individual products

46. Appraiser Johnson has just completed a direct comparison approach and a
cost approach on a property. Johnson is now evaluating the approaches.
Reviewing the reliability and relevance of all the data and checking the
calculations to arrive at a single value estimate.

The process that Johnson is utilizing is typically referred to as?

A) A limiting condition
B) Process of elimination
C) Averaging
D) Reconciliation-----

47. One of the legal remedies available to a mortgagee when a mortgage is in


default is Power of Sale. Which one of the following is correct with regard to
Power of Sale

A) If the sale by the mortgagee results in surplus, the excess funds are returned to
the mortgagor------
B) The minimum time limit that a mortgagor can be in default before Power of Sale
is commenced is 30 days
C) Unlike foreclosure, Power of Sale is a legal remedy and mortgagee must make
an application to the court to commence the action
D) If the prices have declined the lender may take title to the property and sell later
on

48. Which of the following statement is correct as it relates to mortgage funding?

A) The secondary market involves new loans for property financing, while primary
market involves trading of existing mortgages
B) Sub-prime markets deal with borrowers who have high credit score
C) Mortgage interest rates are established based solely on supply and demand in
the market place and not affected by outside influences
D) Primary market relies on the interplay of savers who search for investment
opportunities and borrowers who seek property financing ------

49. Which one of the following is correct statement regarding different types of
mortgages?

A) Under land registration reforms act all mortgages are now legal mortgages
B) Historically a legal mortgage transferred the title to a property to the mortgagee
to secure the repayment of the debt------
C) The term ecno- mortgage refers to a mortgage that exceeds 100% of the
appraised value of a property
D) An equitable mortgage is always the first mortgage on a property

50. A number of different types of financing available in the market place for
commercial properties. Which one of the following is correct statement regarding
commercial financing?

A) A development loan is typically utilized by a builder when financing a long-term


investment in a commercial building
B) A stand-by loan refers to a pre-construction loan commitment for preliminary
financing. Being a short term financing its rate is 2% lower than the permanent
financing
C) A line of credit is an interim financing. It is particularly attractive because its rate
of interest is 2% lower than permanent financing
D) A Gap loan is a form of interim financing that provides financing between
construction advances and the placement of permanent financing------

51. There are different types of mortgages available in the market place. Which is
most the most popular?

A) Interest plus specified principle


B) Interest only
C) Blended payment amortized ----
D) Interest accruing

52. Agents offer their clients regulatory obligations including the obligation of
accounting. Which of the following statement best describes this obligation?

A) Salesperson must keep complete record of all monies spent that can be claimed
as an expense
B) The agent must safeguard an account for all monies and properties being held or
managed on behalf of the principal-----
C) The salesperson must account for all of the time spent in promoting the clients
best interest
D) The agent must be qualified in the subject of accounting and provide advice to
the principal in accounting and financial matters

53. An agent can be defined as

A) A servant of the principal who is required to follow all instructions given by the
principal
B) A representative who is expected to substitute his or her good judgement if he or
she does not agree with instructions of the principal
C) A representative of the principal who can bring the principal in to a legal relations
with third parties-------
D) An employee of the principal who is required to follow all instructions of the
principal

54. Salesperson Joseph of ABC Realty listed a property at 56 Main Street.


Another salesperson from the same brokerage submits an offer on the property
from a buyer who is being treated as a customer. Given that the seller is a client
and the buyer is a customer, is this multiple representation and why?
A) No, because the buyer is using a different salesperson
B) No, because the brokerage is representing the seller and not the buyer----
C) Yes, because of the brokerage is representing the seller and the buyer
D) For the purpose of multiple representation client and the customer are the same

55. Salesperson Smith is at the home of Peter Patterson and Angela Patterson to
list their property. While going through the documents Smith notices that title to
the home is in the name of Angela Patterson only. She informs Smith that her
husband is a BFS and out from the house most of the time. Hence he chose not
to be on title. She maintains that there is no need of his consent for selling the
house. Do you agree with Angela Pattersons statement and why?

A) Yes, because Mr. Patterson is not on title, his consent is not required
B) Yes, the Family Law will apply in this case
C) No, Mr. Pattersons consent is required as this is a matrimonial home-------
D) No, even though Mr. Patterson is not on title, he will still get 50% share in the
property

56. There are rights associated with ownership of real property and there are also
limitations on these rights. Which one of the following statements correctly
applies to these rights and restrictions?

A) A property owner has the right to use his property for any purpose he chooses
B) There are no limitations on an owners right to sub-divide his property
C) If a property is held as fee simple, there are no limitations on the owners rights
D) For private deed restrictions or a restrictive covenant to be enforceable it must be
reasonable and not contrary to public interest ------

57. Metes and Bounds description of a property that is basically rectangle is as


follows:-

Commencing at a point in the westerly limit of the road allowance, a distance of


210.45 feet measured on a bearing of South 15 degree 23 minutes, 37 seconds
west along the westerly limit of the said road allowance from the north eastern
corner of South lot 8:-

1) Thence North 74 degrees, 36 minutes, 23 seconds, West a distance of 193.35


feet.
2) Thence South 15 degrees, 23 minutes, 37 seconds, West a distance of 193.35 ft.
3) Thence North 74 degrees, 36 minutes, 23 seconds West of a distance of 365.40
ft. more or less to a point in the said Westerly limit of the road allowance
4) Thence North 15 degrees, 23 minutes, 37 seconds East along the South
Westerly limit of the road allowance a distance of 193.55 feet more or less to the
point of commencement

There is an error in the metes and bound description. Identify the error:-

A) The word more or less should be included in the description of all four boundary
lines
B) Number 2 should read South 74 degrees, 36 minutes, 23 seconds East of the
point
C) The direction of number 3 is backward and the reverse bearing should be used---
D) The property is on the easterly limit of the road allowance

58. Which of the following statement correctly describes benefit of a Reference


Plan?

A) A reference plan eliminates the need to obtain consent for a severance


B) Enables property owner to create a metes and bounds description
C) Makes it necessary to go through the lengthy and expensive process of sub-
division approval process
d) Helps to avoid problems associated with complex metes and bounds
description- ------

59. There are differences between the registry system and land title system in
Ontario. Based on the differences between these two systems select the correct
statement from the following

A) There is no need to search title of the property in the registry system


B) In the land title system the land register maintains and guarantees title of the
properties-------
C) Title search for a period of 60 years in necessary under land title system
D) Registry system is the newer and most efficient system than land title system

60. The Land Registration Reforms Act sets out 5 standard documents for
registration. Based on the provisions of the act select the correct statement

A) The Act reduced the number of documents to be registered and standardised


registration procedures -------
B) One of the eight standard documents set out in the act is the standard agreement
of purchase and sale
C) When the property is sold and transaction is registered, transfer/ deed of land is
used
D) One of the five documents is Schedule to provide for special terms for other four
documents

61. Which of the following statements best describes the concept of real
property?

Real property includes the physical real estate


Real property includes the physical real estate, plus any changes within the
boundaries of the property
Real property is defined as the physical tangible real estate plus the fixtures
permanently attached to the property but do not include the rights of ownership
Real property is defined as the real estate, plus the bundle of rights to the
property but does not include any physical improvements to the land-------

62: Reference Plans can be identified by:

The plan of subdivision number


The letter M prefixing the plan number
The letter R prefixing the plan number-----
The lot and the concession number

63: Which of the following is a correct statement as it relates to an application for


a consent to sever property?

Consent to server can divide property into a maximum of 21 lots and subdivision
plan approval is required for more than 21 lots
Part of the application process involves notifying surrounding property owners of
the applications-------
The application process is far more complex than for an application for approval
of sub division
All applications for severance are dealt by the Ministry of Municipal Affairs and
Housing

64: What is the purpose of the rafters in a roof system?

Rafters provide a physical support to prevent leakage


Rafters provide a mailing surface on which to directly attach shingles
Rafters transfers the roof load to the outside bearing walls
Rafters connect the roofing system to the footings
65: What is the function of a grounds circuit interrupter in an electrical system?

It is a device that restricts the amount of amperage enter into a building to the
amount stated on the electrical panel
It is a device used by electricians to determine the amperage capacity of
electrical wires in a building
It is a safety device that shuts all power to a circuit if current is leaking.
It is electrical saving device that is attached to the electrical system to reduce
electrical consumption in peak hours

66: An estimate of value can be reported in a number of different ways. If a


lending institution required an appraisal on a residential property in regard to a
mortgage application, which type of report would the lender typically require?

Letter of Opinion
Form Report (Mortgage)
Narrative Report
Comparative Market Analysis

67: Which of the following is a correct statement as it relates to conventional and


high ratio mortgages?

It is the requirement of the lender


All mortgage default insurance on high ratio mortgagee is provided by the
Canada Mortgage and Housing Corporation
A high ratio mortgage is a mortgage that exceeds 80% of the appraised lending
value of the property.
A conventional mortgage is named as it is funded through a private lender

68: Mr. and Mrs. Lafayette have received a pre-approval from Lender Inc. in
relation to their application. This means that:

Lender Inc. has qualified the buyers based as their annual income, checks their
credit rating and has had the property appraisal
They have been approved for a mortgage but it is subject to certain conditions.
They have been supported for a maximum amount of mortgage but the interest
rate will not be determined until the closing date of the property they purchase
They can make a firm offer on a property as they have been approved for a
mortgage authority conditions attached to it
69: Which of the following statements best explain the reason for creating both a
life estate and a future estate?

The grantor of the estates wants more than one person to own the property at
the same time
The holder of the property wants the property to be used for a specific purpose
The grantor of the life estate wants to determine who will receive the property on
the death of the holder of the life estate
The grantor of the estates does not want the property to be leased under any
circumstances

70: Mr. and Mrs. Costanza purchase a home to live in and take title as joint
tenants. This means that:

If Mr. Costanza dies, his interest in the property automatically passes to Mrs.
Costanza.
If Mr. Costanza dies, his interest in the property automatically passes to this
estate
The property cannot possibly be a matrimonial home for either Mr. or Mrs.
Costanza
Both Mr. and Mrs. Costanza are tenants in the home rather than owners

71: Under what circumstances would a real estate salesperson is required to


obtain a spousal consent on an Agreement of Purchase and Refinance?

If both spouses are on title, either the husband or wife must sign the consent
If only one of the sellers is on the title and the property is the matrimonial home
If the seller has a Live in relationship with someone
When the buyer is married but only one name will be put on the title

72: A condominium is often said to be a Creation of Statue. With this in mind,


how would the title of a condominium is registered?

Once the Declaration and Description is registered, each unit can be registered
with a separate deed
If the municipality has both a Registry System and Land Title system in
operation, a new condominium would be registered the Registry System
Since the Registry office is based on Land description, only the land and
common elements have a deed that can be registered
Each unit would be registered in the Registry or Land Titles system by depending
an Exclusive Use Agreement
73: Which of the following statements correctly describes a benefit of a reference
plan?

A reference Plan:

Makes it unnecessary to go through expensive and lengthy process of


subdivision plan approval
Enables a property owner to create a metes and bound description
Eliminates the need to obtain consent for a severance
Helps to avoid the problems associated with complex and confusing metes an
bounds descriptions

74: The registration of ownership of Land in Ontario is undergoing a conversion


to electronic registration of documents, based on the conversion project; select
the correct statement from the following choices:

a) Under POLARIS, registration documents are being transferred from the Land
Titles system to the Registry system
b) Online access to Land Registry offices to permit title searches is provided
through software known as TARAVIEW
c) The Polaris system maintains a property mapping index database and a title
index database
d) The project involves the conversion of millions of properties from paper based to
computerized records
1. A and B
2. B, C and D----
3. A only
4. A,B,C only

75: Under certain circumstances, it may be possible to divide land by obtaining


consent to sever, rather than having to take the more complicated step of
obtaining approval for a plan of subdivision.

Which of the following statement correctly describes such circumstances?

A consent to server may be granted in the project may not have a major impact
on the neighbourhood and a Plan of Subdivision is not necessary for the orderly
development of the municipality
A plan of subdivision is always required of the division of Land will apply for more
than 21years
A consent to sever may be granted, the Land being divided must be a lot or block
of land within an approved Plan of Subdivision
A consent to server may be only required for 10 or more lots

76: With respect to Land use in Ontario and the restriction in Land use, select the
correct statements from the choices provided:

a. It may be possible in obtain a minor variation from the municipality by law


b. When a primary land is being divided into two or more and one is being sold, the
provisions of the Planning Act do not apply in the Ontario
c. A non-confirming use is a legal if it existed before the zoning bylaw was created.
d. It may be possible to obtain a consent to severe a property from the Committee
of Adjustment
1. A,C,D are true-----
2. A
3. B,C
4. A and D

77: What is the difference between balloon framing and platform framing in the
construction of a building?

Balloon framing is mainly used for homes with a brick and platform framing
requires a wood exterior
Platform framing is used mainly for two storey homes and balloon framing is
used mainly for bungalows
Platform framing is used primarily for commercial construction, while balloon
framing is used for residential
In balloon framing the walls are fixed before the floors are attached to the wall
framing

78: Fill in the blanks

The main function of a window is to provide----------- and-----------.All types of


windows need to be checked for air and water tightness as well as for---------------
resistance. Casement windows open ------------and ---------; however special care
should be taken on the -----------of any type of windows to ensure high energy
efficiency.

Ans. Light, ventilation, wind, inward and outward, installation

79: The land Registration Reforms Act sets out standard documents for
registration. Based on the provision of the Act, select the correct statement from
the following choices:
One of the standard documents is a Discharge of Charge/Mortgage which, when
registered on title provides a permanent record of discharge.
The document general is used to register a Charge/Mortgage of Land in the
Registry system but not in the Land titles system.
One of the standard documents set out in the Act is the Surveyors Real Property
Report which is used whenever a property changes ownership
When a property is sold and the transaction is registered, a Transfer/Deed of
Land is used to register any new mortgages on the property

80: Mortgage Default Insurance (also known as high ratio mortgage insurance), is
required in certain circumstances.

The purpose of the insurance is to:

Protect the borrower in the event that the borrower fails to make the mortgage
payments
Pay off the mortgage upon the death of the borrower
Protect the borrower in the event that tax and property insurance payments fall
into arrears
Protect the lender in that the lender will be repaid if the borrower fails to keep up
the payments.

81: In order for mortgage applications to be approved, the property being


financed must meet certain minimum requirements.

Which one of the following situations is most likely to cause concern for a lender
when considering a mortgage application for a typical residential home?

The exterior walls are brick veneer


The property has a municipal water supply rather than a well
The propertys electrical system is a modem 200 amp service
The property does not have an adequate basement.

82: Salesperson Wallace sold a house to a buyer who had signed a buyer
representation agreement with Wallaces brokerage. Wallace recommended a
friend working at Lender Inc., as a source for financing and a mortgage was
arranged. Shortly after closing, the buyer discovered that another Lender was
offering the mortgage financing at one quarter of a percent lower than Lender Inc.
Which of the following best describes Wallaces conduct?

There is no conflict of interest and the referral fee should have been paid directly
to Wallace
By recommending a friend rather than assisting the buyer to obtain the best
terms. Wallace may have violated the fiduciary duty of loyalty----
Wallace has no responsibility for assisting the buyers to get the best rate they
can get
Due to privacy issue, Wallace should not be involved in any way with the buyers
mortgage requirements

83: When land was originally divided into counties, township and concessions, a
200 acre farm could be quickly identified by a:

Concession and lot number


Registered plan of subdivision
Reference Plan
Compiled Plan

84: When an agency relationship is created, the principal owes the agent the duty
of remuneration, the duty of remuneration means:

That the agent must not receive payments from anyone other than the Principal
That if the agent is used, the principal must pay any claim awarded by the court
That the principal has an obligation to pay the agent in return of the services
provided
That a real estate brokerage must ensure that there is a deposit for any
transaction

85: The term multiple representations refer to a situation where:

One brokerage represents the interests of both the buyer and seller in a
transaction
A co-operating brokerage is representing the seller as a sub-agent of the listing
brokerage
Both the buyer and seller are being represented by their own individual
brokerages
A property is co-listed by two different brokerages

86: Which one of the following is a correct statement regarding life estate and
future estates?

The person who holds the future estate can lease the property and give the
tenant immediate possession
A life estate is the highest form of ownership and allows the holder to do
whatever he/she wants to the property
The person who holds the life estate must be the same person who holds the
future estate
The person who holds the life estate cannot sell the property without the consent
of the holder of the future estate

87: There are rights associated with the ownership of the real property and there
are also limitations on those rights. Which of the following applies to these rights
and restrictions?

A land developer has the right to impose zoning bylaws to control the use of the
property once it is sold
A riparian right gives the owner a right of way to travel on the neighbours
property
When a property owner does, the right of escheat determines whether the
owners spouse or eldest child inherits the property
An owners right to sub-divide his/her land is limited by the governments right to
regulate

88: John owns an expensive waterfront home. He meets Jane and they decide to
get married. They move into the property after the wedding. One year later, John
wants to mortgage the property. What must John do to comply with the
requirements of the Family Law Act and when must he do it?

He does not have to do anything because he is the sole owner of the property
John must release the property from the protection of the Family Law Act in the
order to be able to mortgage the property
He must obtain her written consent to mortgage the property because Jane has
right of possession under the Family Law Act
John must sign a deed to John and Jane has joint tenants because she must be
an owner on the title before the property can be mortgaged

89: A metes and bounds description has the following description of a property
boundary line south 14 degrees 38 minutes 15 seconds east

A surveyor creates a survey of the property and indicates this line to be:

North 14 degrees 38 minutes 15 seconds west

Which of the following best describes the difference for two descriptions?

On a survey, a surveyor simply indicates the angle of the line in relation to north
A surveyor always reverses the direction when creating a survey
The surveyor has obviously made an error by reversing the description of the line
The surveyor is describing both the angle and direction of the line

90: From the statements listed below, select the correct one based on the topic
of Surveys

The preparation of a reference plan legally severs a property into parts


An up to date survey is defined as any survey that is less than 20 years old
Reference plans are used to create the metes and bounds description for a
property
A reference plan is a survey but is not a plan of sub-division within the meaning
of the planning Act

91: Land registration Systems operate under various features and principles.

Based on those features and principles, which is correct?

The registry system operates under the mirror principle which conforms that the
title documents are true and accurate reflection of the ownership of the property
Provided that the property is registered in the Registry System, a property owner
is protected by the insurance principle of the title dispute should arise
Buyer of property registered in the Land Titles System is protected from any
claims that lie behind the current title documents by virtue of the curtain principle-
The insurance principle protects owners whose properties are registered in the
Registry system but not in the Land Titles System

92: A builder is the owner of all Lot22, in the registered plan of subdivision
Number 4567, it is quite a large lot and the zoning in the area permits
development of semi-detach home. The builder decides to build two semi-
detached units rather than a single home on the lot and sell the two semis
separately.

Which of the following correctly describes the requirements of the Planning Act
with respect to the builders plan to market the two units?

The builder would have to apply for and obtain approval for another subdivision
plan
If the builder wants to sell the two semis to two different buyers, the builder would
have to obtain consent to sever the Lot into two parts------
The builder would have to sell the two semis to two different buyers
The builder has no other choice than to sell both semis to the same person
93. Fill in the blanks and select the correct option:

In commercial structures, the heating system is often referred to as ------------- and


the pitch of the roof which is referred to as -----------is usually flat with the use of
the term---------- & ------------ being used commonly for this type of roofing.

Ans. HVAC, slope, pit and gravel

94. In a tenancy in common agreement:

No right of survivorship exists------


The unity of time must be present.
Tenants must hold the same interest in the property.
Termination must be by court order.

95: Surface rights are:

Associated with the right of use or alter the surface of real property----------
Associated with the ability to use land for the sole purpose of extracting minerals.
Not registered in a land registry office.
Also referred to as mineral rights.

96: A dominant tenement:

Must about the servient tenement in order for an easement to be granted.


Is the land that receives a benefit over a servient tenement-------
Can continue to enforce rights associated with an easement, only if subsequent
owners of the servient lands agree.
Can be created by an express grant, but not by statute.

97 : A plan of survey that typically contains two parts, one being the survey and
the other being the written report, is called a:

Plan of subdivision.
Surveyors real estate report.
Reference plan.
Surveyors real property report-------

98.Form 1, set out by the Land Registration Reform Act, and is referred to as the:
Land transfer document.
Transfer/Deed of land------
Charge/Mortgage of land.
Document general.

99: The alternate term used for word mortgage under the Land Title Act is a:

Charge------
Mortgage title document.
Deed/Transfer of land.
Charge/Mortgage of land.

100: A title searcher is accessing the POLARIS database. In doing so, that
individual can search properties by different means. Which of the following is
NOT one of them?

Legal Description-------
Owners name.
Property Identification Number.
Address.
PHASE 2 MADE EASY-----PART 2

1: Which of the following is a correct statement regarding standard charge


terms?

Standard chart terms are used solely in paper-based land registry.


Standard charge terms are amended by the lender submitting a notice of Amend
Standard Charge Terms with the registrar.
The number identifying is a specific set of standard charge terms is assigned by
the lender who files the terms with the land registrar.
A provision included in the Charge/Mortgage of land supersedes a similar
provision outlined in the standard charge terms--------

2: The draft plan, when creating a subdivision:

Must be created in accordance with the Land Development Act.


Must include a description of existing or planned municipal services-----
Is registered on title.
Is described as the second official step in the planning process.

3: Once a draft plan is approved:

The plan can be registered as a plan of subdivision in the land registry office.
Any conditions imposed must be fulfilled prior to Final Plan approval and
subdivision registration-------
The developer cannot commence any road construction, as final approval is
needed prior to any such work.
And the final plan is approved, registration for the plan of subdivision may occur
at any future time.

4: In a two-tiered municipal structure:

The upper tier does not have a authority to take over the lower tiers
responsibilities.
The upper tier would be the municipality and the lower tier could be a regional
municipality.
The upper and lower tiers carry out the actual planning process, but ultimate
approval falls to the Provincial Government------.
The upper tier is usually delegated to develop and adopt by-laws.

5: Owner Pittsfield is finalizing site plan control for land he wants to develop. This
land abuts a small river in a municipality, In this regard:

The municipal review process, prior to approval, can involve input from various
agencies------
The municipality has the final say regarding the approval and does not need to
request input from other agencies/ministries.
Penfield must enter into a site plan control agreement with the municipality within
14 days of the final drawings being approved by that municipality.
The municipality would limit approval requirements to grading and servicing
plans.

6: Owner Shinn wants to build a new single-family home on his recently-acquired


vacant rural lot. The lot was recently severed from an existing two-acre parcel
zoned RR1 (Rural Residential 1) for single-family homes. The owner retained the
existing house and sold the newly-created lot to Shinn. Shinn wants to get
underway with the project given the scope of working including lot levelling,
house construction and a new drive way. Based on the circumstance, Shinn:

Would probably require both a building permit and an entrance permit-----


Would need to apply to a committee of adjustment, as his use is non-confirming
from a zoning perspective.
Must obtain the building departments approval for the builder selected.
Would require an inspection by the fire inspector on behalf of the fire marshal.

7: Investor laser has purchased a controlling interest in a small micro brewery


and wants to build an expanded brewing/retailing operation. The proposed
building will have limited value beyond its intended use given extensive custom
features, unique structural requirements and floor layouts to accommodate
brewing equipment. This building would be best described as:

Single purpose industrial------


General purpose industrial
An agri-business structure
Special purpose industrial
8: Which of the following statements is correct in regard to footings for a
building?

Footings are usually made of concrete-------


When a footing fails, any movement is restricted to the immediate area
surrounding that footing
The extent of footing failure is easily ascertained.
Footing problems are easily rectified.

9: Buyer Singh hires a home inspector to conduct an inspection involving a home


that he is purchasing. The inspector concludes that the propertys roof sags
between the roof trusses. Which of the following is most likely the cause?

High roof pitch


Attic condensation
Unsupported edges of roof sheathing
Thin sheathing-------

10: The rain screen construction principle:

Would apply to exterior compound or solid brick masonry walls.


Is used with vinyl or metal siding as a method of dispersing rain water.
Would apply to exterior brick veneer walls--------
Is used in construction of roof sheathing.

11: Metal sliding for a residential structure:

Have definite limitations, particularly because it can only be installed vertically


and not horizontally.
Has proven popular given its relatively low maintenance------
Can only be constructed to aluminum.
Can be very fragile when exposed to extreme cold, and can easily crack or
otherwise be damaged.

12: Builder Rubin is talking to a commercial client and uses the term Wythes
when talking about a planned building design. What is he referring to?

EIFS
Thickness of vinyl siding
Layers of brick on an exterior wall------
Number of wall sheathings
13: A zero clearance fireplace:

Requires a footing, given its weight


Is usually constructed of masonry.
Must be installed to a traditional flue and chimney.
Has a higher efficiency rating than a traditional fireplace------

14: The Edgars are renovating an existing cottage that is situated on a rocky
point overlooking a northern lake. The Ontario building code requires that a new
sewage system be installed, but available space is very limited for the absorption
bed. Percolation tests indicate that existing soil is not acceptable. Which of the
following would be the most appropriate option for the Edgars?

Install a conventional Class 4 system.


Install a Class 4 system with a raised bed.
Install a new Class 2 system
Install a Class 4 system with a filter bed-----

15: Ground source heat pumps:

Use the earths temperature for energy cost savings------


Are limited to commercial use.
Must have the pipes installed in the ground.
Are not very effective in the Canadian climate.

16: A student in the land, Structures and Real Estate Trading Course, has made
four statements about the age (life) cycle of a neighbourhood. Identify which one
of these statement is correct?

The period in which the neighbourhood is gaining public awareness is the decline
phase.
The phase in which the neighbourhood is fully built up is the stability phase------
The declining phase in a neighbourhood life cycle always follows the growth
phase.
In total, there are five phases in the typical neighbourhood life cycle.

17: An assessed value for a residential property is:

Arrived at in the same way that an appraiser would estimate market value.
Not subject to review and appeal.
Typically derived using the cost approach.
Determined by the Municipal Property Assessment Corporation.

18: An instructor asks the student in a Land, Structures and Real Estate Trading
classroom course to identify the types of boundaries that can define a
neighbourhood. Various students have responded with the following answers.
Identify which one of the answers is correct?

The three types of boundaries that define a neighbourhood are natural,


political and man-made-------
Neighbourhoods are defined by either natural or man-made boundaries, but
not political ones.
There are two types of boundaries that define a neighbourhood: social and
man-made.
Neighbourhoods are defined by physical, economic and social boundaries.

19: Which of the following statements is correct regarding a site analysis?

An example of an improvement to a site would be a 2,000 square foot residential


home constructed on a site.
Factors affecting the value of site can be grouped under two categories:
locational and directional.
A site is best described as a parcel of land that is unimproved and in its natural
state.
Landscaping is best described as an improvement to a site, rather than an
improvement on a site-------

20: Owner Bruin is concerned that a General Downturn in the economy has only
increased the downward spiral in a local neighborhood where he owns a small
commercial plaza. For the past ten years, the neighborhood crime rates have
risen, prime tenants have left, vacancies have increased and buildings are not
being repaired. From his perspective as an owner, this trend and resulting loss in
value is best described as:

Curable locational obsolescence.


Economic obsolescence-----
External deterioration.
Functional obsolescence.

21: Appraiser Hume is attempting to estimate the value of a ten year old building
using the cost approach. He decides to estimate building cost by replicating the
existing structure. As such, Hume has decided to use:
Reproduction Cost----
Depreciated Cost
Replacement Cost
Direct Cost.

22: Which of the following statements is correct regarding a reconstructing


operating statement?

A vacancy and credit losses allowance would never exceed 10% of potential
gross (rental) income.
A one-year reconstructing operating statement is only used when estimating
value by way of yield capitalization.
An appraiser should only include those expenses that are necessary to
ensure that rental income can be maintained as the appraisal date------
The reconstructed operating statement consists of three parts: income,
expenses and value estimate.

23: Mortgage Brokerages:

Are no longer allowed to arrange sub-prime mortgages


Are governed by legislation that restricts their activity to primary markets
Are regulated by the Ontario Association of Mortgage Brokers
Typically receive compensation from the lender for residential mortgages;
however, the borrower may be required to pay a fee if complexities arise in
the application process----

24: Mortgage priority:

Is maintained regardless of whether common expenses are being paid by the


owner of a mortgaged condominium corporation registers a lien.
Can be disrupted if a construction lien is placed on the property--------
Is established by clearly indicating on the mortgage document whether it is a first
mortgage, second mortgage or so forth
Is typically established by time of registration which ensures that the mortgage
has priority over any other debt relating to the property

25: Tenant Williamson signed a one-year lease on March 30th and occupied the
rental, residential property that same day. The owner of this single family home
had an existing first mortgage but, in the face of significant financial pressures,
discharged this mortgage approximately 45 days later and arranged a larger first
mortgage through Anycity Lending Inc., Six months later, he defaulted and
Anycity Lending Inc. legally become the landlord as the mortgagee in
possession. Based on the circumstance, which of the following statements is
correct?

Anycity Lending Inc., as a mortgagee in possession, must force Williamson to


vacate the property immediately and then sell the unoccupied property according
to the mortgages Act.
The lease that tenant Williamson signed would definitely not take priority over the
new first mortgage and Williamson would be evicted from the property prior to
the expiration of the one year lease
Tenant Williamson would, in all probability, have the right to remain in property
regardless of the mortgagee becoming a mortgagee in possession------
Anycity Lending Inc. cannot become the landlord, as mortgage related legislation
does not provide with this possibility.

26: Mortgagor Mariani has experienced a significant financial downturn in his new
restaurant business and faces the possible loss of his home. Mariani wants to
release any interest he has in the home in the mortgage and essentially walk
away from it. A small rental apartment would be more appropriate under the
circumstances. If the mortgagee agreed, which of the following mortgage
remedies best suits his situation?

Foreclosure
Mortgage release
Power of Sale
Quit claim deed-----

27: Lender Inc. has been approached by an investor who wants to install water
and sewers system and construct roads on an owned six-acre parcel of industrial
land in preparation for development and sale of building sites. The investor, as an
active developer in the process, would then repay Lender Inc. from site sales to
those builders. This type of financing is best described as a:

Development loan-----
Bridge loan
Gap loan
Blanket loan

28: Which of the following statements is correct regarding credit bureaus?

An individuals credit history provided by a credit bureau will always be complete.


A consumer has the right to access his/her personal credit information collected
by a credit bureau and to dispute errors in that information-------
Credit bureaus may have limited information about a specific person because
their sole information source is institutional lenders, such as banks.
Credit bureaus collect credit information as well as details regarding personal
habits and political affiliations.

29: A lender is seeking some form of sharing agreement with the mortgagor
either on a profit or ownership basis. The special purpose financing is best
described as:

Participation financing---------
Joint share financing
Bridge financing
Wraparound financing.

30: An agreement whereby a seller agrees to list a property with a brokerage, for
purposes of REBBA 2002, is referred to as a:

Listing agreement
Seller representation Agreement------
Seller agency agreement
Brokerage listing agreement.

31: Salesperson Patel has been showing houses to a buyer who signed a buyer
customer service agreement with Patels employing brokerage, Anycity Real
Estate Inc. The buyer has expressed a keen interest in a single-family home at
321 Locust Avenue in Anycity. The home backs onto a vacant field that
neighborhood children have been using for a baseball diamond. The buyer, prior
to signing an agreement of purchase and sale, asks salesperson Patel if the field
is a public park. Salesperson Patel is not really certain, but does tell the buyer
that it is green space and, as such, will not be built on. Which of the following
statements is correct regarding Patels statement to the buyer?

The salesperson does not completely and accurately answer the question
posed by the buyer; he would be in the breach of his fiduciary duties of that
buyer.
The issue of whether the adjacent field is green space or otherwise is not
directly relevant to buying this home and salesperson Patel should inform the
buyer that fact.
Salesperson Patel has failed to exercise reasonable care and skill in
answering the buyers question------
Salesperson Patel has correctly answered the question to the best of his
ability and has no further obligation in that regard.

32: Salesperson Wong is presenting a counter offer to her buyer client. The
property being negotiated was listed one week ago by another brokerage for $
789,900 and the initial offer by the buyer was $ 775,000. The seller countered that
initial offer at $ 789,000 and the buyer client is now debating whether or not to
accept this counter offer. Base on your knowledge of client relationships,
Salesperson Wong:

Should strongly encourage her buyer to accept the offer, as the seller will clearly
not accept anything less.
Should provide whatever available, relevant market information to assist the
buyer in making the decision about this counter offer-----
Is only obligated to be fair and honest, as well offering conscientious and
competent service, when dealing with her buyer client regarding this counter sign
Should discourage her buyer from accepting the offer, as paying that high a
price would not be in that buyers best interest.

33: Salesperson Phillips, employed by Anycity Real Estate Inc., listed a tri-plex
owned by seller McBrien that is located at 3281 Main Street in Anycity. The brick-
veneer structure with main floor, upper-floor and basement apartments is fully
rented. The listing price, which McBrien established in consultation with Phillips,
is $ 589,500.

The rental property market is active and best described as a sellers market.
Approximately one week later, an offer is obtained by Salesperson Richardson
with Anycity Real Estate Inc. who is working with the buyer customer. The offered
price is $ 575,000. The two salespersons are present when the offer is presented
to seller McBrien. Based on this scenario, which is the following statements, is
correct?

Salesperson Phillips and Richardson, when protecting and promoting the clients
interests, should advise the seller to accept the offer as it is very close to the
asking price.
Salesperson Richardson should not discuss the offer with Seller McBrien, as he
owes his primary duty to the buyer who submitted the offer.
Salesperson Phillip must provide conscientious and competent service to his
seller client according to the REBBA code of Ethics, but salesperson Richardson
does not owe that same responsibility to the buyer, as the buyer is a customer.
Salesperson Phillip and Richardson must provide conscientious and competent
service to both the buyer and seller-------.

34: Seller Wrobel, as a client of a brokerage, has received an unconditional offer


on his commercial building. However, given extensive marketing activity,
salesperson De Souza employed by that brokerage is still generating interest and,
in fact, a buyer customer submits a signed backup offer on the property. In this
instance,

Salesperson De Souza:

Must refrain from submitting the signed offer, as the property is already
sold
Should advise the seller that another buyer is interested, but not
submit the signed offer for the sellers consideration.
Should submit the signed offer for the sellers consideration----
Should hold the backup offer and only present it to the seller if the first
agreement falls through

35: A Real Estate Brokerage has a representation agreement signed by a seller. In


this instance, the brokerage:

Has established a single representation arrangement with the seller----


Has established a multiple representation agreement with the seller
Is typically referred to as the co-operating brokerage
Could not have a representation agreement, as well, with a prospective
buyer of the sellers property.

36: In Ontario, land was originally divided into counties, townships and
concessions.

A concession is best described as:

o A strip of land 100 chains wide running the length of a single front
township----
o A strip of land used as a road allowance
o An irregular parcel of land identified by a metes and bounds description
o A 200 acre lot

37: One of the key differences between the Registry Systems versus the Land
Titles system is that:

All new subdivisions, including new condominium project, must be registered


under the Registry system.
Unlike registry, in the Land Titles System, the title to property cannot be
acquired by any length of possession or prescription (squatters rights)
In a sale involving a property registered under the Land Title System, the Title
search must extend to at least 60 years
The registry system is the newer of the two systems and operates on the
mirror, curtain and insurance principles

38. Which statements is correct as it relates to roofing materials?

Asphalt shingles are classified by weight with the most common being 210
pounds per square -----
Clay tiles, because they are porous, are lighter than Asphalt shingles.
Wooden shakes generally have a shorter life span than asphalt shingles
Slate tiles have lost their popularity due to their cost and the fact that their life
expectancy is similar to less expense asphalt shingles

39: The difference between an octopus furnace and a conventional furnace is


that:

A conventional furnace is much less efficient than an octopus furnace


An octopus furnace works on gravity relying on warm air to rise through the
supply ducts while a conventional furnace uses a fan-----
Due to consumer demand, most new homes today are being built with octopus
furnaces
Octopus furnaces have become increasingly popular because there is no fan to
circulate warm air resulting in energy savings

40: The legal priority of a mortgage is generally determined by the time of its
registration, but this rule is subject to some exceptions.

Which one of the following encumbrances could take priority over a first
mortgage?

A third mortgage which has never been registered on title.


A second mortgage which has been registered after the first mortgage
Unpaid property taxes owed to the municipality-----
A second mortgage with a smaller principal balance than the first mortgage

41: When an agency relationship is created, the principal owes the agent
certain duties. Which of the following statements best describes these duties?

The principal owes indemnification which means the principal must pay
the agent for the services rendered
The principal must act with loyalty and in good faith and protect the
interests of the agent
The principal must act in good faith and fully disclosed all information
pertaining to the transaction to the agent
The principal must take responsibility for the lawful acts done by the agent
on behalf of the principal and pay the agent for the services provided------

42: When someone holds a property in fee simple, that person is said to enjoy
the full bundle of rights of ownership. What rights does this give the owner?

The property cannot be expropriated if it is held in fee simple.


An owner who holds a property in fee simple can use, sell, lease or
bequeath (will) the property-------
A fee simple interest is absolute ownership and there are no limitations on
what the owner can do with the property
If the property is held in fee simple, easements and deed restrictions are
not enforceable on the owner of the property

43: A property sells and when the transaction closes, the buyer finds out that
the seller has removed a bar and set of bar stools that were located in the
family room. The buyer objects because the buyer thought that they were
included in the price. The buyer contacts the seller and the seller points out
they were not included in the Agreement of Purchase and Sale, the bar was
not actually attached to the property in any way and the property sold for less
than the full listed price.

Which of the following statements best describes this situation?

They are fixtures that are part of the property and therefore were included in
the purchase
They are fractional interests according to the bundle of rights and therefore
are included in the property.
Even though they are chattels and they were not written into the Agreement
as included in the purchase price, they now belong to the buyer
They are chattels, they are not attached to the property, and therefore they
are not included in the purchase price unless it is stated in the Agreement that
they are included---------

44: When Ontario was originally surveyed into counties and townships
hundreds of years ago, the roads were basically road allowances that were
one chain (66 feet) in width between the concessions. In modern times we
have a complex system of roads and streets, with both the province and the
municipalities involved in the construction and maintenance of the road
systems.

From the statements listing below, select the statement that is correct with
respect to the Ontario road systems.

There is no requirement for a permit for a property owner to construct a


driveway for access to a road or highway
All roads and streets in Ontario are constructed and maintained by the
provincial government
Both the provincial government and municipalities have strict controls over
the erection of signs and road systems------
Obtaining approval for a plan of subdivision does not require approval for the
proposed streets

45: A Land Registration Reform Act sets out five standard documents for
registration. Based on the provisions of the Act, select the correct statement
from the following choices:

When a property is sold and the transaction is registered, a Transfer/Deed


of Land is used-------
The document general is used to register a Charge/Mortgage of land.
One of the five standard documents is the Agreement of Purchase and
Sale
One of the five standard documents set out in the Act is the Surveyors
Real Property Report.

46: Which of the following statements correctly applies to the registration of


documents under the Land Registration Reform Act?

The six standard forms required by the Act are the Transfer/Deed of Land,
the Charge/Mortgage of Land, the transfer of Charge/Mortgage of Land,
the discharge of Charge/Mortgage of Land, the standard Agreement of
Purchase and Sale and the General Schedule
The four standard forms required by the Act are the Transfer/Deed of
Land, the discharge of Charge/Mortgage, the Document General and
Schedule
The five standard forms required by the Act are the Transfer/Deed of
Land, the Charge/Mortgage of Land, the discharge of Charge/Mortgage of
Land, the Document General and Schedule-----
The six standard forms required by the Act are the Transfer/Deed of Land,
the Charge/Mortgage of Land, the Charge/mortgage of Land for
subsequent mortgages, the Document General, the Land Transfer Tax
Affidavit and the standard Agreement of Purchase and Sale.