Which Statement Is Incorrect Concerning Mortgages

question 49

Multiple Choice

Which statement is incorrect concerning mortgages?

• A) The mortgagee's interest terminates upon performance of the obligation secured by the mortgage.
• B) The mortgagee has the right to enforce the mortgage by foreclosure upon default by the mortgagor.
• C) The mortgagor must have complete or absolute ownership in the property.
• D) Generally, no particular form of language is required to create a mortgage.

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Definitions:

Useful Life

The estimated period over which an asset is expected to be usable by an organization, affecting its depreciation calculation.

Net Cash Inflow

The total amount of cash received minus the total amount of cash spent over a period.

Initial Investment

The initial amount of money spent to purchase an asset or start a project.

Annuities

Financial products that provide a series of payments over time, often used for retirement income.