Chapter 19 Flashcards
Based on Ontario’s current PST rate, what would the tax amount be for an insurance premium fee of $10,000?
Select one:
a. $500
b. $800
c. $600
d. $700
Correct Answer: $800
Rationale: In Ontario there is still 8% PST (not HST) payable on the premium. For example, a CMHC fee of $10,000 would result in a tax of $800.
Relevant section(s) of the textbook: 19.1 Estimating Closing Costs
The correct answer is: $800
The document, signed by the vendor’s and purchaser’s lawyers, that allows for closing an electronic transaction:
Select one:
a. Acknowledgment and Direction (A&D)
b. Certificate of Title
c. Document Registration Agreement (DRA)
d. Interest Adjustment Date (IAD)
Correct Answer: Document Registration Agreement (DRA)
Rationale: This is the document, signed by the vendor’s and purchaser’s lawyers that allows for closing an electronic transaction.
Relevant section(s) of the textbook: 19.4 Key Terms and Definitions
The correct answer is: Document Registration Agreement (DRA)
This term POLARIS stands for:
Select one:
a. Province of Ontario Local Registration Information System
b. Provider of Online Land Registration Information System
c. Provider of Ontario Land Registration Information System
d. Province of Ontario Land Registration Information System
Correct Answer: Province of Ontario Land Registration Information System
Rationale: POLARIS: Province of Ontario Land Registration Information System
Relevant section(s) of the textbook: 19.4 Key Terms and Definitions
The correct answer is: Province of Ontario Land Registration Information System
This is an update of a previously completed full search, commonly performed on behalf of a purchaser by his or her lawyer immediately prior to registration of a transfer, and on behalf of mortgagees immediately prior to the registration of a mortgage
Select one:
a. Secondary search
b. Subsearch
c. Title search
d. Home inspection
Rationale: A subsearch is an update of a previously completed full search, commonly performed on behalf of a purchaser by his or her lawyer immediately prior to registration of a transfer, and on behalf of mortgagees immediately prior to the registration of a mortgage. A subsearch typically consists of performing searches on the title of the main property and adjoining properties for easements, restrictive covenants, etc., as well as execution searches, chattel searches and other land-related searches.
Relevant section(s) of the textbook: 19.2 The Closing Process
The correct answer is: Subsearch
This term refers to fees and costs due at the end of a mortgage transaction:
Select one:
a. Closing costs
b. Lawyer fees
c. Land transfer tax
d. Interest adjustment amount
Correct Answer: Closing costs
Rationale: Closing costs: The costs associated with closing a real estate and mortgage transaction.
Relevant section(s) of the textbook: 19.4 Key Terms and Definitions
The correct answer is: Closing costs
The gateway used to access POLARIS and create and register land titles documents electronically in Ontario is called:
Select one:
a. e-admin
b. e-sys
c. e-web
d. e-reg
Correct Answer: e-reg
Rationale: e-reg: The gateway used to access POLARIS and create and register land titles documents electronically in Ontario.
Relevant section(s) of the textbook: 19.4 Key Terms and Definitions
The correct answer is: e-reg
This is a package of documents sent to the closing lawyer from the lender:
Select one:
a. Instructions to Solicitor
b. Requisition Letter
c. Closing package
d. Acknowledgment and Direction
Correct Answer: Instructions to Solicitor
Rationale: Closing costs: This package commonly contains:
- A copy of the lender’s mortgage approval
- The lender’s disclosure statement
- Solicitor’s Final Report and Certificate of Title document for the lawyer to fill in
- Solicitor’s Interim Report and Requisition for Funds document for the lawyer to fill in
- Pre-authorized Debit Form
- Acknowledgement and Direction
- Instructions on the requirements for title-insured mortgages and non-title-insured mortgages
- Requirements regarding property insurance, surveys, condominium units, proof of identity, etc.
Relevant section(s) of the textbook: 19.2 The Closing Process
The correct answer is: Instructions to Solicitor
This document, signed by the client, provides the lawyer with the authorization to electronically register documents:
Select one:
a. Interest Adjustment Date (IAD)
b. Document Registration Agreement (DRA)
c. Acknowledgment and Direction (A&D)
d. Certificate of Title
Correct Answer: Acknowledgment and Direction (A&D)
Rationale: Acknowledgment and Direction (A&D): The Acknowledgment and Direction, signed by the client, provides the lawyer with the authorization to electronically register documents.
Relevant section(s) of the textbook: 19.4 Key Terms and Definitions
The correct answer is: Acknowledgment and Direction (A&D)
Who typically chooses the lawyer to close the mortgage transaction on behalf of the lender?
Select one:
a. Always the borrower
b. Always the lender
c. Borrower or lender
d.
The mortgage agent
Correct Answer: Borrower or lender
Rationale: Closing costs: Certain lenders will have a specific lawyer they wish to use to close the transaction, while others will allow the client to use their own lawyer.
Relevant section(s) of the textbook: 19.2 The Closing Process
The correct answer is: Borrower or lender
The software used to access POLARIS electronically is called:
Select one:
a. Telenet
b. Teleview
c. Teraview
d. Teranet
Correct Answer: Teraview
Rationale: Teraview: Teranet’s software that provides access to e-reg and POLARIS
Relevant section(s) of the textbook: 19.4 Key Terms and Definitions
The correct answer is: Teraview
