Ontario Mortgage Agent Practice Exam

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Study for the Ontario Mortgage Agent Exam. Prepare with flashcards and multiple choice questions, each question includes hints and explanations. Get ready for your test!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What condition precedent is most common in real estate transactions?

A condition for financing which allows the Borrower to cancel the contract if he or she cannot obtain mortgage financing
A court order that prohibits a party from doing something or acting in a certain manner
Administrative charges including charges for services, transactions or any other activity in relation to the mortgage
Insurance charges, excluding those below

The correct answer is: A condition for financing which allows the Borrower to cancel the contract if he or she cannot obtain mortgage financing

In real estate transactions, the most common condition precedent is a condition for financing. It allows the buyer to cancel the contract if they are unable to obtain mortgage financing. This is important because securing financing is a crucial step in the home buying process and without it, the buyer may not be able to proceed with the transaction. Option B is incorrect because a court order is not a condition precedent, but rather a legal remedy. Option C and D are also incorrect because they refer to administrative and insurance charges, which are not related to conditions precedent in real estate transactions.