Humber/Ontario Real Estate Course 3 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 3 Exam with our practice quizzes. Study using multiple-choice questions complete with hints and explanations. Ace your exam with confidence!

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If a buyer submits an offer for $329,900 with a $20,000 deposit and a $200,000 seller-financed mortgage, what would be the remaining balance on Schedule A?

$329,900.
$309,900.
$289,000.
$109,900.
$209,900.
$119,000.

The correct answer is: $109,900.

In this scenario, the buyer is making an offer to purchase a property for a total price of $329,900. The buyer is providing a $20,000 deposit and wants a seller-financed mortgage of $200,000. To understand the remaining balance on Schedule A, it's important to recognize that Schedule A outlines the total purchase price and any financing arrangements. The total purchase price of the property is $329,900. The amount financed through the seller is $200,000, which represents a portion of the total price that is not being covered by immediate cash or other arrangements. The deposit of $20,000 reduces the amount of money the buyer will need to borrow. To calculate the remaining balance after considering the deposit and the seller-financed mortgage, determine how much of the total price is left after applying these two amounts: 1. Start with the total offer price: $329,900. 2. Subtract the deposit: $329,900 - $20,000 = $309,900. 3. From this amount, subtract the amount covered by the seller's mortgage: $309,900 - $200,000 = $109,900. This result indicates the remaining balance that must be accounted for on Schedule A