7. (a)What should a second mortgagee do when the mortgagor has defaulted on the 1st mortgageand the fair market value of the house exceeds the original purchase price of the house, and why is that so?

(b)Explain two major advantages to the "land titles" system of registration, as opposed to the"registry system" of registration.

(c)What kind of clauses should a mortgagor negotiate to have included in a "closed" mortgageagreement, if she thinks that:

(i) she may need to sell her mortgaged property prior to the endof the term of her closed mortgage; and

(ii) prevailing market interest rates will be higher when she sells her property than they are now?

(d)Can a principal's knowledge of an agent's professional experience affect any of the duties owed by the agent to the principal?Why or why not?