Humber Real Estate -Course 1 Module 2 Questions and Answers with complete solution

"A borrower __________ the mortgage and the lender __________ the financing." - gives According to its mission statement, what is CREA's primary purpose? - To represent and promote the interests of the members, enhance members' professionalism and ability to succeed, and advocate policies that ensure real estate property rights and ownership. Course 1 - Model 2 - Describe a client relationship in reference to a brokerage. - The term representation implies an agency relationship with the brokerage and this places both regulatory (REBBA) & fiduciary obligation on the brokerage. The brokerage is required to be loyal, not disclose confidential information and promote & protect the seller or buyer's best interests. Describe a customer relationship in reference to a brokerage. - A brokerage can provide services to a seller or buyer rather than representing the party. This doesn't require the same level of obligation as a client relationship. A brokerage must treat the customer with fairness, honesty & integrity and ensure information provided is accurate. BUT ... No fiduciary obligations are owed when providing services (such as loyalty, confidentiality or promoting their best interests). Describe a linked dwelling. - - Two or more single-family homes that are attached - Placement of the attached portion isn't always obvious (may be a concrete wall below grade or above grade using the garage walls) - May appear closer to the property line than other homes in similar neighbourhoods Describe a multi-unit residential dwelling. - - More than one dwelling unit within a single building - Often a residential duplex, triplex or fourplex - Separate entrance and/or shared entrance through a common vestibuleDescribe a townhouse. - - 3 or more units joined together by party walls - Full basement, main level living area & upper level for bedrooms - Can be on their own land or part of a condo complex Does every branch office require a Broker of Record? - No. Only 1 Broker of Record is required for the main office only. Each branch office is assigned its own Branch Manager to provide supervision, compliance with REBBA & handle all record management. How many members does RECO's Board of Directors have? - 12 How many real estate boards are currently operating in Ontario? - 38 In what document is the agreed-to commission typically described (if a separate commission agreement document is NOT used? - Representation Agreement (AKA listing agreement or buyer agreement) In what ways can a commission be negotiated? - - A percentage of the sale or lease amt (i.e. 4% of the sale price) - An agreed upon amount (i.e. $10k) - A combination (i.e. 2.5% of the sale price + $5k) Instead of the term 'Mortgage' (which is used under the Registry Act), what term is used under the Land Titles Act? - Charge Name the characteristics of a bi-level / split entrance bungalow. - - Makes more effective use of the lower basement areas - Front door foyer located as a split level between the upper and main areas and lower areas - Basement is raised above grade level when compared to the traditional bungalow, allowing for larger windows and greater sunlight, access & ventilation Name the characteristics of a one and one-half storey home. - - About 60% of the total living area is contained on the first floor- Style is more cost-effective than a bungalow because of more square footage on the same building coverage (footprint) of the land - High-pitched roof for additional living area - Dormers (protrusions through the roof) were added as the design became more popular Name the characteristics of a split-level home. - - Attempts to provide ease of movement from one area of the home to another with minimal steps - First introduced in the 1960s, most popular in the 70s & 80s - Includes side-split (left to right) and back-split (front to back) designs - Can involve 3 or more levels of living area (up to 5) - Features a lower level family room, main level living room, dining room and kitchen, and an upper level for bedrooms and main bathroom Name the characteristics of a two storey home. - - Large living area with separate level for sleeping areas - Ceilings upstairs are flat (unlike one and one-half storey homes) - Dominates the residential market given high land costs & the ability to maximize living area Name the different types of commercial buildings. - - Office - Retail - Mixed-use - Multi-unit - Industrial - Agricultural Name the types of attached homes. - - Semi-detached - Townhouse - Linked dwelling - Multi-unit resident dwellingRegistration with which organization gives registrants access to the MLS system, local market information & data reports? - Local Real Estate Board The term 'Buyer' (used by REBBA) is synonymous with the term '__________' which may be used in other legislation. - Purchaser The term 'Seller' (used by REBBA) is synonymous with the term '__________' which may be used in other legislation. - Vendor What are considered 'Chattels'? - Personal property that is moveable. These are usually excluded from the purchase of a property unless otherwise negotiated between the buyer & seller. What are considered 'Fixtures'? - Personal property that is securely attached - usually permanently - to a property and are typically included in the sale of the home. Examples of fixtures: curtain rods, window shutters, light fixtures, mirrors & built-in appliances. What are the 2 land registration systems used in Ontario where a title can be registered? - - The Registry Act - The Land Titles Act What are the 2 types of offices a brokerage can have? - - Main brokerage office - Branch office What are the 3 levels of Organized Real Estate? - - The Canadian Real Estate Association (CREA) - The Ontario Real Estate Association (OREA) - Local Real Estate Boards What are the functions of The Ontario Real Estate Association (OREA)? - - Lobbying for Realtors - Providing downloadable forms & clauses - Offering savings programs - Informing members of industry newsWhat distinguishes a ranch style bungalow from a regular bungalow? - More living space and an attached garage. What does CREA stand for? - Canadian Real Estate Association What is 'Personal Property'? - Moveable consumer goods (i.e. appliances, furniture, light fixtures & drapes). Personal property includes both Fixtures & Chattels. What is a typical encumbrance that would be found on a title before a sale is complete? - The seller's mortgage (it must be discharged before the title transfer can take place). What is another term for 'Borrower' under the Land Titles Act? - Chargor What is another term for 'Borrower' under the Registry Act? - Mortgagor What is another term for 'Landlord'? - Lessor What is another term for 'Lender' under the Land Titles Act? - Chargee What is another term for 'Lender' under the Registry Act? - Mortgagee What is another term for 'Tenant'? - Lessee