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!

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What is a Certificate of Independent Legal Advice and when is it required?

A) Proof of mortgage approval; required in every transaction
B) Proof of income verification; needed for government loans
C) Proof of legal counsel; required for third-party proceeds in a refinance
D) Proof of insurance coverage; mandatory for first-time homebuyers

The correct answer is: C) Proof of legal counsel; required for third-party proceeds in a refinance

A Certificate of Independent Legal Advice is proof that both parties in a real estate transaction have received legal counsel from their own independent lawyers. This option explains when a Certificate of Independent Legal Advice is required. Option A, proof of mortgage approval, is incorrect because while a Certificate of Independent Legal Advice may be a requirement for a mortgage, it is not proof of mortgage approval. Option B, proof of income verification, is incorrect because this is not related to legal advice. Option D, proof of insurance coverage, is incorrect because while insurance coverage may be required for a real estate transaction, it is not related to legal advice.