Humber/Ontario Real Estate Course 3 Exam Practice

Owner Patterson reducing debt obligations with family help is:

1. Acquiring mortgage free status

2. Discharging any pending broker claims

3. Disposing of related title encumbrances

4. Exercising the right to redeem and retain property

5. Gaining clear title with zero outstanding dues

6. Settling third-party equitable interest claims

The correct answer is: Acquiring mortgage free status

Reducing debt obligations with family help can lead an owner to achieve mortgage-free status. When an owner is able to pay off or significantly reduce their mortgage debt, typically through financial assistance or contributions from family members, they can eliminate the mortgages on their property. This results in full ownership of the property without the burden of loan payments. Achieving this status can provide several benefits, including financial freedom, increased equity in the property, and the simplicity of not having to make monthly mortgage payments. It fosters a sense of security and ownership, allowing the property owner to use their funds for other investments or personal needs. The other options describe different scenarios that do not necessarily relate to the act of reducing debt obligations through family assistance. For instance, disposing of title encumbrances refers to the removal of legal obligations tied to the property but does not specifically connect to the act of managing debt through familial support. Similarly, settling third-party claims or gaining clear title with zero outstanding dues involve different legal or financial processes unrelated to simply paying down personal mortgage debt.