Ontario Barrister and Solicitor Practice Exam

A vendor take-back mortgage is a type of loan where the seller of a property acts as the lender and provides financing to the buyer. In this scenario, Jones does not own the abutting land, but that does not affect the validity of the vendor take-back mortgage. The arrangement is still considered a valid transaction as long as both parties agree to the terms and conditions. Options B, C, and D are incorrect because they suggest that the lack of ownership of the abutting land would impact the validity of the mortgage, which is not the case.