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!

Practice this question and more.

What is the purpose of a lien in real estate?

To create an interest in land
To provide security against a property
To ensure co-ownership of real property
To restrict the use of a property

The correct answer is: To provide security against a property

A lien is a legal claim against a property in order to secure the payment of a debt or other obligation. This means that the creditor has the right to take possession of the property if the debtor fails to fulfill their financial obligations. Option A is incorrect because a lien does not create an interest in land, but rather acts as a form of security. Option C is incorrect because a lien does not ensure co-ownership, but rather protects the creditor's interest in the property. Option D is incorrect because while certain liens can restrict the use of a property (e.g. tax liens), this is not the primary purpose of a lien in real estate. Option B is the best answer as it accurately describes the purpose of a lien in real estate.