Humber/Ontario Real Estate Course 3 Exam Practice

Which of the following is NOT a typical consideration when deciding on a seller take-back mortgage?

1. The buyer's capability to repay.

2. Sufficient funds needed to facilitate closure of another deal.

3. Inclusions and exclusions of fixtures in the sale.

4. Administrative costs of selling the mortgage.

5. The current interest rates.

6. The loan term length.

The correct answer is: Inclusions and exclusions of fixtures in the sale.

The reasoning for identifying that inclusions and exclusions of fixtures in the sale is not a typical consideration when deciding on a seller take-back mortgage lies in the focus of a seller take-back mortgage itself. This financial arrangement primarily revolves around the buyer's ability to repay the loan, the terms of the mortgage, interest rates, and the overall financial viability of the transaction. Inclusions and exclusions of fixtures pertain more directly to the specifics of the property being sold rather than the financing arrangement associated with a seller take-back mortgage. When a seller agrees to finance part of the purchase price for the buyer through a mortgage, the emphasis is generally placed on the buyer's financial qualifications, ensuring sufficient funds are available for other deals, and understanding administrative costs and interest rates—not on what fixtures are included in the sale. By contrast, considerations like the buyer's repayment ability, current interest rates, and loan term length are essential for determining whether the financing arrangement is feasible and sustainable, affecting both the buyer’s ability to repay and the seller's financial security.