Humber/Ontario Real Estate Course 4 Exam Practice

What should Buyer Symanski note on the "pay the balance as follows" line on Schedule A given a $20,000 deposit and seller's first mortgage of $200,000?

1. $329,900

2. $109,900

3. $309,900

4. $309,000

5. $90,000

6. $130,000

The correct answer is: $109,900

In a real estate transaction, the "pay the balance as follows" line on Schedule A typically indicates the remaining amount due to conclude the purchase after accounting for the deposit and any existing mortgages or encumbrances on the property. In this scenario, the total purchase price can be deduced by summing the deposit and the amount remaining after considering the seller's first mortgage. The seller's mortgage is $200,000, which affects the total that Buyer Symanski will need to pay, ensuring that the total reflects the purchase price accurately. Given that there is a $20,000 deposit, it's important to recognize that this deposit will reduce the overall amount that the buyer needs to finance. Therefore, the calculation involves determining the total amount owed by the buyer after applying the deposit to the remaining balance of the mortgage. While the other figures presented may represent various calculations or misunderstandings regarding the relationship between the deposit, the mortgage, and the total purchase price, the correct calculation leads to the figure of $109,900 being the appropriate amount that Buyer Symanski should note on Schedule A for balancing the transaction after the deposit. This reflects the next steps after the initial payment has been accounted for in the buyer's total financial obligations relating to the purchase.