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1: The lender in a mortgage contract is also called a:

A. Mortgagor
B. Debtor
C. Primary lender
D. Mortgagee

2: What right does a hypothec grant to the hypothecary creditor?

A. To seize the property at any time

B. To enter the pledged property at any time
C. Upon default of the debtor, to force the holder of the land to surrender it for sale
D. Of a hypothecary creditor to use property without compensation

3: What are the three registration systems for recording an interest in land in Canada?

A. The Torrens System, the Québec System of Hypothecs, the Municipal Registry System.
B. The Land Title System, the Torrens System, the Québec System of Hypothecs.
C. The Registry System, the Land Titles System (or Torrens System), the Québec
System of Hypothecs.
D. The Federal Registry System, the Provincial Registry System, the Municipal Registry
System.

4: Identify the consideration that provokes a mortgage paydown dilemma.

A. Whether part of the mortgage principal at an anniversary date of the mortgage should be
paid down.
B. Whether excess cash should be used to deposit to an RRSP or pay down a
mortgage.
C. Whether to use the blend-and-extend method when interest rates fall.
D. Whether or not to accelerate the mortgage payments.

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5: Which power allows governments to expropriate private property for public use with proper
compensation to the owner.

A. Zoning
B. Eminent domain
C. Emphyteusis
D. Strata of title

6: The concept that the rights of joint tenants arise simultaneously is known as:

A. Unity of Possession
B. Unity of Time
C. Unity of Title
D. Unity of Interest

7: Which property right allows a third party to have access over someone else's real property
to install a hydro line.

A. Usufruct
B. Nue propriete
C. Eminent domain
D. Easement

8: Which clause in a mortgage states that, in the event of a default on any instalment that is
due, all outstanding principal and accrued interest is due immediately?

A. Redemption clause
B. Acceleration clause
C. Power of sale clause
D. Foreclosure clause

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9: When two people own land, and one dies, and that interest in the land is transferred to
their heirs, the land is held as:

A. Tenants in common
B. Joint tenants
C. Tenants in fee simple
D. Tenants at large

10: Any right, interest, or benefit in land, including mines, minerals, and improvements on,
above, or below the surface is known as what?

A. Eminent domain
B. Real property
C. Easement
D. Tenancy in fee simple

11: The right to tax real property resides with which level of government?

A. Municipal
B. Provincial
C. Federal
D. Regional

12: When land is held as Tenants in Common what unity is present?

A. Unity of possession
B. Unity of time
C. Unity of title
D. Unity of interest

13: A conveyance of an interest in land as security for a debt is also called what?

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A. Pledge
B. Mortgage
C. Collateral loan
D. Immovable

14: When the purchaser of a home takes over an existing mortgage, the mortgage is said to
be what?

A. Portable
B. Released
C. Assumable
D. Vendor take back

15: The National Housing Act prepayments to what per cent of the outstanding principal
balance without penalty on the 12th and 24th payment dates.

A. 5.00%
B. 10.00%
C. 12.00%
D. 15%

16: Which remedy is available to a mortgagee when there has been default of payment under
the mortgage that does not involve the courts?

A. Foreclosure
B. Power of sale
C. Clearing title
D. Quit claim

17: Which party is authorized to provide insurance to mortgage lenders?

A. A trust company
B. Canadian Mortgage Investment Company
C. A credit union
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D. Canadian Mortgage and Housing Corporation

18: Identify the right of ownership term describing a property leased to a lessee who can
receive the full benefit and enjoyment of that property.

A. Zoned
B. Eminent domain
C. Emphyteusis
D. Strata title

19: Identify the right of ownership term where one person is entitled for a limited period to
enjoy the benefit of another property as if the person were the property owner.

A. Usufruct
B. Eminent domain
C. Emphyteusis
D. Strata title

20: Identify the statement that is not correct about legal recourse for the lender and "sale by
judicial authority" in Québec.

A. "Giving in payment" forms part of the Civil Code of Québec under the chapter on Sale.
B. The court fixes the conditions and charges of the sale.
C. Hypothecary creditors are registered according to their rank.
D. The effect of this remedy is to wholly discharge all real rights of the property,
including all servitudes.

21: What Act requires all lenders to permit prepayment of a conventional mortgage after the
fifth anniversary of the mortgage with a penalty equal to three months' interest?

A. The Bank Act

B. The Interest Act
C. The National Housing Act

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D. The Trust and Loan Companies Act

22: Joe and Caitlin bought a house under the terms of Joint Tenancy. After Joe died, Caitlin
sold a 25% interest in the house to each of Tom and Jenna. Identify the statements(s) that is
true.

A. Tom and Jenna Smith have the right of Unity of Title.

B. When Caitlin dies, her share will pass to Tom and Jenna.
C. Caitlin is the sole owner if Joe named her in his will as beneficiary.
D. After selling the two 25% interests, the ownership structure is now Joint Tenancy with
Tom and Jenna.

23: When there is separate ownership of a structure on property belonging to another, it is

known as:

A. Tenancy in common
B. Undivided co-ownership
C. Superficies ownership
D. Divided co-ownership

24: Co-ownership that is similar to condominium interest under common law is known as:

A. Tenancy in common
B. Leasehold
C. Superficies ownership
D. Divided co-ownership

25: Any profit on sale after the Final Order for Foreclosure belongs to whom?

A. The lender
B. The borrower
C. Both the lender and the borrower

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D. The courts

26: In Québec, to exercise taking in payment, the creditor must satisfy which following
condition?

A. There must be a petition for abandonment filed.

B. The creditor must obtain title of ownership.
C. The creditor must wait to obtain the surrender of the property.
D. There must be an order from the regulatory body.

27: The Hoffmans purchased a home three years ago and mortgaged it with a variable rate of
interest. Since then, interest rates have risen, and their monthly payments have increased
substantially. They have both lost their jobs and can no longer make their monthly payments.
They have not been able to sell their home, because of a slump in housing sales. The lender,
a bank, has been threatening to take action to foreclose on the property. What is the best
course of action for the Hoffmans?

A. There is nothing they can do if the bank decides to foreclose.

B. They can ask the bank to accept whatever price they can get for their house, even
if it is less than the amount owed, and forgive the remainder owing.
C. They can petition the court to have the bank leave them alone until the house is sold.
D. They should just abandon the home and not leave a forwarding address.

28: Fred has decided to hold a mortgage as an investment in his RRSP. Select the
statements that are true concerning restrictions on this investment.

A. Upon default of payments, there are different consequences from a conventional

mortgage.
B. The mortgage must be insured and administered by a financial institution
approved under the National Housing Act (NHA).
C. Interest rates must match the market rates
D. Prepayments may be granted

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