1.The city of Eastville requires that a lot must have a minimun of 1,260 square metres to obain a building permit. Seller Smith has a lot measuring 98.5 by 145.7 feet. maximum coverage permitted (square feet/ metres on the main floor) is 12% of the entire lot size. Select the correct response for the following two questions:

1)DOES SMITH'S LOT MEET MINIMUM STANDARDS; AND

2)IF THE LOT DOES, WHAT WOULD BE THE MAXIMUM SQUARE METRES ALLOWED ON THE MAIN LEVEL AREA OF SMITH'S HOME?

A. YES, the lo meets minimum standards and the maximum main living area permitted is 162 square metres.

B.Yes, the lot meets minimum standards and the maximum main living area permitted is 189 square metres.

c.Yes, the lot meets minimum standards and the maximum main living area permitted is 179 square metres

d.No, the lot does not meet minimum standards and therefore, a maximum main living area does not apply.

2.A buyer s considering purchasing a house for $276,000 and he has the following costs:

$3,240 for land transfer tax and legal fees

$615 for adjustments on clsoing

$950 for moving expenses

$2,800 for major purchases

If the buyer was assuming existing financing of $147,500, what liquid assests are required?

a.$136,105

b.$276000

c.$283,605

d.$128500

3. A buyer is applying for a mortage loan of $70,000, withan annual interest rate if 12% and blended monthly payments of $722.32 including both priciple and interest. The taxes on the property being the mortgaged are $1900 per annum. The buyer has a gross income of $41,400 per annum. The buyer's debt service ratio is:

a.20.94%

b.15.10%

c.25.53%

d.25.78%