Sample Sub-Mortgage Broker Pre-Licensing Exam Questions

To give you an idea of what the sub-mortgage broker exam is like, here are two sample questions.

At Quick Pass Master, we get straight into the concepts. With our clear explanation, you will not get confused and will understand the underlying reasoning quickly and effortlessly.

Question 1: UBC Mortgage Examination Law Question Sample

George bought two units in a ten unit condominium project. Within one week of the completion of this purchase some other condominium owners, the Smithe family, were killed in an accident in the Jacuzzi whirlpool. Mrs. Smithe was the sole survivor of this family. The pool is located on the common property in which George now owns an interest. Mrs. Smithe is suing the strata corporation and George is concerned about the extent of his liability for any damage award she may receive. Assuming that the strata corporation is found liable to Mrs. Smithe, which of the following statements correctly describes George’s liability?

1. George must pay his proportionate liability for any judgment registered against the common property of the strata corporation.
2. George will owe Mrs. Smithe absolutely nothing as the Strata Property Act contains provisions requiring all strata corporations to obtain and maintain liability insurance to insure against this type of occupiers liability.
3. The Strata Property Act requires the strata corporation to pay out Mrs. Smithe’s judgment from its contingency reserve fund. George will pay only his proportionate share of any amount left unpaid after the reserve fund is used up.
4. Because George has not owned the units for a minimum of two weeks before the accident occurred, he is not responsible to pay any proportionate amount of the judgment.

Which of the above statements correctly describe George’s liability?

(1) Only A.

(2) A and B are correct.

(3) A, B and D are correct,

(4) Only C is correct.

Question 2: UBC Mortgage Examination Sample Math Question

Bruce signs a contract of purchase and sale with Sandy to buy her home for th $200,000. The completion and adjustment date is set at November 15 . It is NOT a leap year. The commission payable is 3% of the selling price. Bruce has made a deposit of $3,000 which has passed to Bruce’s lawyer to be deposited in a trust account until the completion date. Sandy agrees to accept Bruce’s SUV as part payment equal to $5,000. Bruce borrows a loan of $60,000 from RBC. Current year’s property taxes are $800, which Sandy has paid on time. For legal and registration fees, Bruce’s lawyer will charge $400. Sandy will be paying out a judgment registered against the tile to her house in the amount of $2,500 along with the legal fee of removing it, which is $120. Bruce’s lawyer to will handle this transaction for both parties. As no exemptions apply to this transaction, property transfer tax will be payable upon completion.

Bruce’s share of the year’s adjustments as a:

1. A debit of $103.01
2. A debit of $100.82
3. A credit of $103.01
4. A credit of $100.82