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 the purpose of a Status Certificate in a mortgage transaction?

A) Proof of current employment status
B) Verification of property ownership
C) Information on previous insurance claims
D) Required when financing a condominium unit

The correct answer is: D) Required when financing a condominium unit

A Status Certificate is a document required when financing a condominium unit in a mortgage transaction. This certificate provides important information about the condominium corporation, such as its financial status, any legal actions or claims against the building, and any potential special assessments or increases in condominium fees. Option A is incorrect as proof of employment status is not relevant to a mortgage transaction. Option B is incorrect as ownership of the property is verified through other documents such as a title search. Option C is incorrect as previous insurance claims do not affect the mortgage transaction. Therefore, the correct purpose of a Status Certificate is to provide necessary information for financing a condo unit.