Ontario Real Estate Licensing Exam Practice · Question
When a borrower obtains a mortgage, what legal document outlines the terms and conditions of the loan and grants the lender an interest in the property as security?
The mortgage deed (or charge/mortgage document) is the legal instrument registered against the title of the property. It formally grants the lender a charge or
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Question: When a borrower obtains a mortgage, what legal document outlines the terms and conditions of the loan and grants the lender an interest in the property as security?
Answer options:
- Agreement of Purchase and Sale
- Title insurance policy
- Promissory note ✅ Mortgage deed
Correct answer: Mortgage deed
Explanation: The mortgage deed (or charge/mortgage document) is the legal instrument registered against the title of the property. It formally grants the lender a charge or interest in the property as security for the loan, outlining the terms and conditions agreed upon by the borrower and lender.
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- A buyer is considering a mortgage product that allows them to prepay a portion of their principal at any time
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- What is the primary purpose of registering a deed under the Registry Act in Ontario?
- What is the primary role of a 'title search' in a residential real estate transaction in Ontario?
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