1. Mortgage borrowers traditionally had 3 options, *the 3 Rs*, when their mortgages mature :
a) Retire the loan. b) Refinance it with a different lender. c) Or__________________
2. Wills are nullified by marriage, but not by separation or divorce. True or False? ( )
3. Which statement about the Home Buyers’ Plan (better known as the RRSP program) is NOT correct? Choose a letter.. ( )
a) Participants can buy a new or resale house or condominium.
b) The maximum amount an individual can borrow on their mortgage is $20,000.
c) Borrowed money must be applied toward the purchase price.
d) Only funds deposited in a RRSP at least 90 days can be withdrawn.
4. In response to a 1998 Supreme Court decision, probate fees were eliminated and not replaced. True or False? ( )
5. Under the new RECO Code of Ethics, licensed real-estate agents cannot lodge complaints about the activities of other real-estate agents. True or False? ( )
6. The new Condominium Act is now in effect in Ontario. True or False? ( )
7. Under Ontario’s newly revised Family Law Act, unmarried opposite-sex common-law spouses: Choose One ( )
a) Have support rights after cohabitating together for 3 years.
b) Can seek to equalize assets acquired while spouses.
c) Have all the same rights as married couples.
d) All of the above
e) None of the above.
8. In response to a recent Supreme Court decision, the Family Law Act has been amended to give same-sex partners the same rights as married spouses. True or False ( )
9. A builder’s warranty “that no substitution will be made without a buyer’s written consent” only applies if a new house or condo buyer is contractually entitled to select materials and finishes. True or False? ( )
10. How many days is the grace period for new homes and condos, during which no compensation is payable due to a delayed closing? a) 0 b) 3 c) 5 d) 7 ( )
11. If a shortfall exists in a real-estate broker’s trust account, what is the order of priority for claims amongst agents, consumers, and secured parties? ( )
12. Who generally benefits from the expression : “to the best of my knowledge and belief” in a contract? Vendor or purchaser? ( )
13. For new houses and condos priced under $350,000, the GST New Housing Rebate effectively trims the GST rate to: a) 2.52% b) 3.5% c) 4% d) 4.48% e) 5% ( )
14. What category of purchaser does not qualify for the GST New Housing Rebate?
15. Dual agency is limited to situations where real estate agents sell one of their own listings to a buyer. True or False? ( )
16. A phantom mortgage in a new condominium represents: a) The unpaid balance of the purchase price during occupancy. b) The amount paid by the purchaser prior to occupancy. c) The amount payable by the purchaser each month while in occupancy. d) The amount of the closing adjustments. ( )
17. Besides the Estate Administration Tax Act, name the other tax act in Ontario exempt from the new Taxpayer Protection Act. ( )
18. Which statement is NOT correct? a) Both PST and GST are payable on Ontario New Home Warranty Program premiums. b) The premium for mortgage default insurance arranged with CMHC is subject to both PST and GST. c) Sales of principal residences are exempt from GST, but not the associated services (such as solicitor’s fees and real-estate commissions). d) For purposes of the capital gains exemption, spouses are allowed only one principal residence between them. ( )
19. Basement apartments must comply with the Ontario Fire Code in order to be legal. True or False? ( )
20. Which of the following are mandatory for licensed real estate agents in Ontario? Choose one. a) Errors and Omissions (i.e. negligence) Insurance. b) A compensation fund, protecting consumers from loss of deposits. c) A recovery fund, protecting other real-estate agents from loss of commissions. d) All of the above. e) None of the above. ( )