Ontario Mortgage Agent Practice Exam

Which entity obtains the remaining money after the sale of a property in a power of sale scenario?

1. The lender

2. The borrower

3. The government

4. The real estate agent

The correct answer is: The lender

In a power of sale scenario, the lender is typically the entity that obtains the remaining money after the sale of a property. This is because in this situation, the lender has the right to take possession of and sell the property in order to recover the unpaid loan amount. The borrower, on the other hand, has usually defaulted on their loan and may not be entitled to any remaining money from the sale. The government is not involved in the sale of the property unless there are outstanding taxes or liens, in which case they may receive some of the proceeds. The real estate agent is not directly involved in the distribution of funds and is paid through commission by the buyer or seller, depending on the agreed upon terms.