RECA FUNDAMENTALS OF MORTGAGE
BROKERAGE 2026 EXAM SCRIPT COMPLETE
QUESTIONS AND SOLUTIONS GRADED A+
◉ 5 Ds of Role Clarity. Answer: 1. Discuss
2. Determine
3. Document
4. Disclose
5. Do
◉ Must disclose in writing. Answer: - the nature of services provided
- whether professional has entered into representation relationship
with other party
- any conflicts of interest
- any other facts that may influence consumers decision to proceed
with relationship
made to clarify and provide proof of undertanding in event issues or
disputes arise
◉ Written Service Agreement vs Customer Acknowledgement
Forms. Answer: Written Service Agreement
,- when consumer chooses a representation relationship
- becomes a client
- provide signed copy to brokerage
Customer Acknowledge forms
- non-representation relationship
- becomes a customer
- provide signed copy to brokerage
◉ PIPEDA. Answer: - Federal legislation
◉ PIPA. Answer: Alberta's legislation, how private organizations use
and disclose personal information.
◉ Power of Attorney. Answer: a legal document authorizing
someone to act on your behalf
- must be 18
- POA must be written, dated and signed by both donor and witness
- donor must be mentally capable or contract is void
- only effective as long as donor is alive, will takes effect once death
◉ Types of POA. Answer: General POA
,- has no limits on powers of the attorney
- can make all decisions regarding financial and legal affairs
- exception where the donor resides and health care
Special POA
- make certain decisions
- also called limited POA
- may grant authority to oversee sale, deals with land
- must be registered on Certificate of Title
Immediate POA
- takes effect as soon as POA is signed, dated and witnessed
- terminates upon loss of mental capacity or death
Enduring POA
- immediately upon being signed, dated and witnessed
- continues if donor becomes incapable, mentally incapacitated
- must include statement whether it takes effect immediately and
continues...
◉ Judicial Sale. Answer: Court ordered sale usually as a way to
resolve legal matters
, - primary debt recovery method for default mortgages
◉ Foreclosure. Answer: legal action supervised by the court
following a default on the mortgage.
-transfers the real property from the borrower to the lender and
erases interests on title.
◉ Alberta Building Code. Answer: Legislation that establishes
technical specifications for new building construction and
construction materials
◉ Building Permit. Answer: typically valid for one year during which
construction process must be initiated
◉ Factory Built Construction. Answer: Manufactured
- three sections that are 95% complete when they leave the factory.
- secure the sections to the foundation and join together
- can often move in the same day or within days
- saves time and mony
Modular Construction
- manufacturing three dimensional units, 85 percent complete when
they leave
BROKERAGE 2026 EXAM SCRIPT COMPLETE
QUESTIONS AND SOLUTIONS GRADED A+
◉ 5 Ds of Role Clarity. Answer: 1. Discuss
2. Determine
3. Document
4. Disclose
5. Do
◉ Must disclose in writing. Answer: - the nature of services provided
- whether professional has entered into representation relationship
with other party
- any conflicts of interest
- any other facts that may influence consumers decision to proceed
with relationship
made to clarify and provide proof of undertanding in event issues or
disputes arise
◉ Written Service Agreement vs Customer Acknowledgement
Forms. Answer: Written Service Agreement
,- when consumer chooses a representation relationship
- becomes a client
- provide signed copy to brokerage
Customer Acknowledge forms
- non-representation relationship
- becomes a customer
- provide signed copy to brokerage
◉ PIPEDA. Answer: - Federal legislation
◉ PIPA. Answer: Alberta's legislation, how private organizations use
and disclose personal information.
◉ Power of Attorney. Answer: a legal document authorizing
someone to act on your behalf
- must be 18
- POA must be written, dated and signed by both donor and witness
- donor must be mentally capable or contract is void
- only effective as long as donor is alive, will takes effect once death
◉ Types of POA. Answer: General POA
,- has no limits on powers of the attorney
- can make all decisions regarding financial and legal affairs
- exception where the donor resides and health care
Special POA
- make certain decisions
- also called limited POA
- may grant authority to oversee sale, deals with land
- must be registered on Certificate of Title
Immediate POA
- takes effect as soon as POA is signed, dated and witnessed
- terminates upon loss of mental capacity or death
Enduring POA
- immediately upon being signed, dated and witnessed
- continues if donor becomes incapable, mentally incapacitated
- must include statement whether it takes effect immediately and
continues...
◉ Judicial Sale. Answer: Court ordered sale usually as a way to
resolve legal matters
, - primary debt recovery method for default mortgages
◉ Foreclosure. Answer: legal action supervised by the court
following a default on the mortgage.
-transfers the real property from the borrower to the lender and
erases interests on title.
◉ Alberta Building Code. Answer: Legislation that establishes
technical specifications for new building construction and
construction materials
◉ Building Permit. Answer: typically valid for one year during which
construction process must be initiated
◉ Factory Built Construction. Answer: Manufactured
- three sections that are 95% complete when they leave the factory.
- secure the sections to the foundation and join together
- can often move in the same day or within days
- saves time and mony
Modular Construction
- manufacturing three dimensional units, 85 percent complete when
they leave
