Humber/Ontario Real Estate Course 3 Exam Practice

The legal right to reclaim property after clearing mortgage debts is known as:

1. Act of Redemption

2. Clearance of Equitable Title

3. Maturity of Mortgage

4. Mortgage Redemption

5. Property Release

6. Title Clearance

The correct answer is: Mortgage Redemption

The legal right to reclaim property after clearing mortgage debts is specifically known as mortgage redemption. This term encapsulates the process where a borrower pays off the outstanding debt tied to their mortgage, thereby regaining full ownership of the property without any encumbrances. When the mortgage is satisfied, the lender must release its claim on the property, which is formalized through legal documentation typically referred to as a "deed of reconveyance" or similar. This concept is particularly important for homeowners, as it affects their ability to fully own and control their property once they fulfill their financial obligations to the lender. Mortgage redemption signifies the end of the borrowing relationship and legally restores the homeowner's title to the property, free from the mortgage burden. Other options, like the act of redemption, may appear similar yet are used in slightly different contexts and may not capture the full scope of the return of rights to the homeowner upon settling debts. Understanding these terms is crucial for real estate professionals who navigate the legalities surrounding property ownership and mortgages.