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 does an encumbrance do to real property ownership?

Facilitates ownership transfer
Restores full ownership rights
Provides tax incentives
Limits the rights of fee simple ownership

The correct answer is: Limits the rights of fee simple ownership

An encumbrance places limits on the rights of a fee simple owner, such as restricting their ability to sell or transfer the property. Option A is incorrect because an encumbrance does not facilitate ownership transfer, it actually hinders it. Option B is incorrect because an encumbrance does not restore full ownership rights, it limits them. Option C is incorrect because an encumbrance does not provide tax incentives, it imposes restrictions on the owner.