Humber/Ontario Real Estate Course 2 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 2 Exam with our comprehensive quiz that covers essential concepts and topics. Enhance your understanding with multiple choice questions designed to test your knowledge and boost your confidence before the exam.

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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If Buyer Marshall offers $350,000 for Seller Lee's property and includes a $25,000 deposit with a seller take-back mortgage of $220,000, what is the amount indicated on the "pay the balance as follows" line in Schedule A?

$105,000
$225,000
$325,000
$105,900
$350,000
$110,000

The correct answer is: $105,000

In this scenario, the correct answer is $105,000. To understand why, we need to break down the elements of the offer. Buyer Marshall's offer is $350,000 for Seller Lee's property. This includes a $25,000 deposit. Additionally, there is a seller take-back mortgage of $220,000. To find the amount indicated on the "pay the balance as follows" line in Schedule A, we need to subtract the deposit and the seller take-back mortgage from the total offer price: $350,000 (total offer price) - $25,000 (deposit) - $220,000 (seller take-back mortgage) = $105,000 Therefore, the correct amount indicated on the "pay the balance as follows" line in Schedule A is $105,000. The other options are incorrect because they do not accurately calculate the remaining balance that the Buyer needs to pay after deducting the deposit and seller take-back mortgage from the total offer price.