Ontario Mortgage Agent Practice Exam

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Prepare for the Ontario Mortgage Agent Exam. Study with comprehensive quizzes, multiple-choice questions, and hints that enhance your understanding of mortgage regulations and practices in Ontario. Get ready to succeed in your mortgage agent licensing journey!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What is the purpose of Title insurance in a mortgage transaction?

A lender's remedy to obtain title to a defaulted property
Completely analyze the borrower's needs
Provide protection against errors in title such as property encroachments
Ensure a healthy balance of mental, social/emotional, and physical well-being

The correct answer is: Provide protection against errors in title such as property encroachments

Title insurance is used in a mortgage transaction to provide protection against any potential errors in the title of the property. This can include things like undisclosed liens, past ownership disputes, or incorrect property boundary lines. Option A is incorrect because it refers to a lender's remedy, not the purpose of title insurance itself. Option B is incorrect because that would be part of the lender's job, not the purpose of title insurance. Option D is incorrect because it is not related to the purpose or role of title insurance in a mortgage transaction.