MRT1: Mortgage Law, Practice and Application

• Unit 01

  MRT1: Mortgage Law, Practice and Application

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A few questions from this module, with the answer and a full explanation. The complete bank is available when you start practising.

1. What is one type of enquiry a buyer's solicitor might raise about property boundaries?

   • A
     The buyer's mortgage approval status
   • B
     The estimated market value of the property
   • C
     Clarification of where the boundary lines are located
     Correct answer
   • D
     The seller's reason for moving
   Explanation

   During the conveyancing process, a buyer's solicitor raises enquiries to clarify important details about the property. Boundary enquiries are a standard part of this process as they establish exactly what land is included in the purchase.

2. How are credit card payments categorised in an affordability assessment?

   • A
     As income deduction
   • B
     As discretionary spending
   • C
     As committed expenditure
     Correct answer
   • D
     As basic expenditure
   Explanation

   Credit card payments are categorised as committed expenditure because they represent ongoing financial commitments that must be paid regularly, regardless of whether the borrower chooses to use the card further.

3. Who typically shares the cost of party wall work?

   • A
     The freeholder pays all costs
   • B
     The property owner requesting the work pays all costs
   • C
     The local authority pays all costs
   • D
     Both property owners share the cost equally
     Correct answer
   Explanation

   Party wall work costs are typically shared 50-50 between the two property owners whose properties share the wall. This reflects the shared ownership and benefit of the party wall structure.