Humber/Ontario Real Estate Course 2 Exam Practice

When is it necessary to update a home title?

1. After major renovations

2. When refinancing the mortgage

3. Upon a change in family marital status

4. When disputing property boundaries

5. After purchasing new insurance

6. Upon moving into the property

The correct answer is: When refinancing the mortgage

Updating a home title is necessary when refinancing the mortgage because when a property is refinanced, the mortgage lender will require an updated title search to ensure that there are no liens or encumbrances on the property. This is crucial for the lender to protect its interests in the property. The other options are not necessarily times when updating a home title would be required. Major renovations, change in family marital status, disputing property boundaries, purchasing new insurance, or moving into the property would not typically trigger the need to update a home title.