RECA Mortgage broker Questions And Answers Rated A+

According to the Dower Act, what is NOT one of the criteria used to determine if Dower applies? - Answer-The property is mortgaged in the name of one party According to the Dower Act, which of the following would be considered disposition of the property?I. Selling the propertyII. Leasing the propertyIII. Placing a mortgage on the propertyIV. Getting a line of credit against the property - Answer-All of the above Explanation Disposition of the property includes:Selling the propertyLeasing the propertyPlacing a mortgage on the propertyGetting a line of credit against the property Conway, a real estate appraiser, is doing a valuation on a brand new infill property in Bolliver Heights. While driving in the area, he notices that properties in the area are looking run down and in need of maintenance. Some neighbors have not mowed their lawns and while others have discarded items in the front yard. What principle of valuation would Conway need to keep in mind while doing the property valuation? - Answer-The principle of regression Explanation The Principle of Regression states that when properties in the same area are dissimilar, the property with the greater value will be adversely affected (regress) in value by its close proximity to properties of lesser value in the immediate vicinity. hat regulatory obligation does the brokerage have to a customer regarding funds received in trust? - Answer-The brokerage has a regulatory obligation to account for any funds received in trust from the customer, ensuring proper handling and transparency. How are representation relationships typically established? - Answer-Estoppel Representation relationships can be established by: agreement, implication, ratification,estoppel, or operation of law How can a licensee ensure that they meet the standard of care expected of them? - Answer-Licensees can ensure that they meet the standard of care expected of them by: practicing being a lifelong learner, seeking advice when appropriate, and being aware of market/practice issues If the contract ends because it becomes impossible to perform the contract due to unanticipated circumstances, what is this type of contract termination called? - Answer-Frustration Explanation A frustrated contract is a contract that, after its formation, without fault to either party, is incapable of being fulfilled due to an unforeseen event or series of events that was not expressed in the contract. An example of frustration is when a brokerage has a property listed for sale and the house is destroyed by fire. In this case, the existing contract is terminated because there is no property as described in the agreement to sell. Oscar, a mortgage professional, is completing a mortgage application with Lydia who has just purchased an investment property subject to financing. As part of the application process, Omar must obtain income verification details on Lydia's employment. What type of consent does Oscar need to collect this information? - Answer-Express consent Explanation Mortgage professionals should always receive the borrower's express written consent prior to collecting their personal and financial information, obtaining their credit reports and providing the information to potential lenders. Sonia is a real estate professional helping her buyer, Hailey, purchase a property. Hailey hires a qualified home inspector, Henry, to perform a property inspection on the house she is considering purchasing. After conducting the property inspection and providing the inspection report Henry sends Hailey the invoice. What type of contract has Hailey entered into with Henry? - Answer-Implied contract Explanation An implied contract is a legally enforceable agreement that arises from the actions or intentions (i.e. non-verbal conduct) of the parties involved which suggests that they are acting under an agreement.Buyer Hailey should expect to be charged for the work and the home inspector should be expected to be paid. Therefore, an implied contract to pay the reasonable value of the services rendered exists. Two years ago Peter purchased a fourplex valued at $650,000. Last year the city announced that it is building a large recreational centre 3 blocks from the fourplex. A real estate agent tell Peter that his fourplex is now worth $800,000.Which principle of property valuation is described in this scenario? - Answer-The principle of external factors Explanation The Principle of External Factors states that various external factors can impact the value of a property, including economic, political, social, and physical issues. The value of Peter's property has increased due to the convenient location to the new recreation centre. What are the different types of condominium plans that may be registered with Alberta Land Titles?I. Conventional Condominium PlansII. Conventional Blended Condominium PlansIII. Bare land Condominium PlansIV. Barely Blended Condominium Plans - Answer-The Condominium Property Act describes three different types of Condominium Plans that may be registered with Alberta Land Titles. These include: Conventional Condominium Plans Bare land Condominium Plans Barely Blended Condominium Plans