Ontario Barrister and Solicitor Practice Exam

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Does defaulting on rents impact a property owner's ability to mortgage the property?

Yes, the default must be disclosed
No, it has no impact
Only if the bank requires
No, but rent must be paid first

The correct answer is: Yes, the default must be disclosed

If a property owner defaults on rents, it must be disclosed because it affects their financial standing and may make it more difficult for them to secure a mortgage in the future. Option B is incorrect because defaulting on rents does impact their ability to mortgage the property and option C is incorrect because it is not dependent on the bank's requirements. Option D is incorrect because while rent must be paid first, defaulting on rents can still impact a property owner's ability to mortgage the property.