Humber/Ontario Real Estate Course 4 Exam Practice 2026 – The Comprehensive All-in-One Guide for Exam Success!

The correct response highlights that a mortgagee has the right to assign a mortgage, which is a fundamental aspect of mortgage agreements. In real estate, the mortgagee is the lender or entity that provides the mortgage funds to the borrower, typically a financial institution. The assignment of a mortgage allows the mortgagee to transfer their rights and benefits under the mortgage to another party, which can facilitate the sale of the mortgage, the movement of capital, or other financial strategies. This right to assign is essential for maintaining liquidity in the mortgage market and provides the lender with options for managing their investment.

Understanding the significance of this statement provides clarity on the roles and rights of mortgagees compared to other terms surrounding mortgages. For instance, a second mortgage typically refers to a secondary lien on a property and is not described as a senior mortgage. The term "charge" may still be used in legal contexts to describe certain interests in property, and the responsibilities of both mortgagors and mortgagees involve lending and repayment, not vice versa. Overall, recognizing the assignment rights of mortgagees illustrates the flexibility and attributes inherent in mortgage agreements.