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 is the purpose of a restrictive covenant on property rights?

To grant unlimited property use to the owner
To allow for property resale at any price
To restrict property use for a specific purpose
To ensure joint property ownership

The correct answer is: To restrict property use for a specific purpose

A restrictive covenant on property rights is a legally binding agreement that limits the use of the property to a specific purpose. This is often used to ensure that the property maintains its intended use or to protect the character and value of a neighborhood. Option A, granting unlimited property use, would essentially render the restrictive covenant useless. Option B, allowing for unrestricted resale of the property, is not necessarily the purpose of a restrictive covenant. Option D, ensuring joint ownership, is also not a typical purpose of a restrictive covenant. Therefore, option C is the most accurate answer.