Humber/Ontario Real Estate Course 4 Exam Practice

Seller Thomas is contemplating a seller take-back mortgage regarding an offer from a buyer. Which factor is NOT significant in deciding on this financing arrangement?

1. The buyer's credit history.

2. The excluded fixtures in the sale.

3. The seller’s requirement for sufficient funds to close a further transaction.

4. The seller’s urgency to complete the deal.

5. The property appraisal values.

6. The potential resale of that mortgage and associated expenses.

The correct answer is: The excluded fixtures in the sale.

In deciding on a seller take-back mortgage, the factor that is not significant is the excluded fixtures in the sale. While the buyer's credit history, property appraisal values, and the seller’s urgency to complete the deal are crucial in evaluating the reliability and potential success of the financing arrangement, excluded fixtures do not influence the seller's decision on a mortgage. Excluded fixtures pertain to the items that remain with the seller and do not form part of the sale. This aspect is more related to the specifics of the property transaction rather than the financing element itself. For instance, understanding what stays or goes with the property can affect negotiations but does not directly impact the viability or terms of the seller take-back mortgage. On the other hand, factors such as the buyer's credit history are vital as they indicate the likelihood of the buyer being able to make mortgage repayments. The seller's need for funds to complete another transaction may also weigh heavily on the decision, ensuring that they have adequate liquidity for their future plans. Similarly, the urgency to close the deal can directly affect the terms of the mortgage and the willingness of the seller to engage in such financing. Lastly, assessing property appraisal values is critical because it helps determine whether the mortgage amount is appropriately secured by the property's worth