RECA FUNDAMENTALS OF MORTGAGE
BROKERAGE 2026 TEST PAPER PRACTICE
QUESTIONS AND COMPREHENSIVE SOLUTION
SET
◉ Personal Property/ Chattels. Answer: Chattels are tangible,
movable items which are neither land nor permanently attached to
the property
e.g.
Furniture. Clothing. Household goods. Some appliances. Window
coverings
◉ Fixtures. Answer: Chattels are different from fixtures. Fixtures
have been installed in or fixed to the property, therefore becoming
part of the building.
e.g.
Boilers and radiators. Built-in kitchen units. Sinks, baths, toilets, and
showers. Built-in fireplaces. Plug sockets.
◉ Land. Answer: Land does not only refer to the earth but includes
the buildings on it; and it includes buildings separated from the
,earth, so that the owner of the topstorey flat is still a landowner.
'Land' also includes intangible things such as rights of way; and
some rights that are not attached to physical land
◉ What are the three characteristics of land. Answer: 1. It is
immobile (it cannot be moved).
2. It is industructable (it cannot be destroyed).
3. It is Unique (no land is identical).
◉ What legislation governs all aspects of mortgage brokerage and
real estate industries in Alberta?. Answer: The Real Estate Act
◉ What does the Real Estate Act Define Mortgage as (mortgage is
referred to as...)?. Answer: S.1(q) of the Act notes that within the Act,
"mortgage" refers to a mortgage of real property, or of a lease of real
property.
it can also refer to a charge on real property, on a lease of real
property, or on another mortgage for the purposes of securing the
repayment of money or another consideration
◉ What is the term "mortgage" typically used to refer to in the real
estate and mortgage brokerage industries. Answer: "mortgage" to
refer to a financial product with certain features and privileges.
,◉ who are the parties to a mortgage. Answer: The parties to the
mortgage contract are referred to as the mortgagee and mortgagor.
All mortgage documents contain these legal terms.
◉ What is a mortgage. Answer: A mortgage is generally defined as
the pledging of real property to a lender as security for a debt.
It is an interest in land created by a contract (mortgage document)
that is security for a loan made by the lender to the borrower.
Mortgages are a tool for a borrower to secure property for use,
whereas a lender views the mortgage as an investment to enable a
return on funds lent.
In simple terms, a mortgage is collateral over property given to the
lender for purposes of a loan's repayment.
◉ who is the mortgagee. Answer: also known as the lender, is the
individual or entity lending funds secured by real property.
They receive specified payments as stated in the mortgage contract.
Lenders include any person, group, or institution participating as a
lender in a debt obligation secured by a mortgage
, ◉ Who is the mortgagor. Answer: also known as the borrower, is the
individual or entity borrowing the funds secured by real property
They make specified payments according to the mortgage contract. I
◉ What is the National Housing Act (NHA). Answer: The Parliament
of Canada passed the National Housing Act (NHA) in 1938. It was
intended to promote the construction of new houses, the repair and
modernization of existing houses, and the improvement of housing
and living conditions.
It replaced and expanded the scope of the Dominion Housing Act of
1935
◉ what is the purpose of the NHA. Answer: The purpose of the NHA
is set out in section 3: In relation to financing for housing, the
purpose of the NHA is to promote housing affordability and choice
to facilitate access to housing and finance
and competition and efficiency in the provision of housing finance
to protect the availability of adequate funding for housing at low
cost
BROKERAGE 2026 TEST PAPER PRACTICE
QUESTIONS AND COMPREHENSIVE SOLUTION
SET
◉ Personal Property/ Chattels. Answer: Chattels are tangible,
movable items which are neither land nor permanently attached to
the property
e.g.
Furniture. Clothing. Household goods. Some appliances. Window
coverings
◉ Fixtures. Answer: Chattels are different from fixtures. Fixtures
have been installed in or fixed to the property, therefore becoming
part of the building.
e.g.
Boilers and radiators. Built-in kitchen units. Sinks, baths, toilets, and
showers. Built-in fireplaces. Plug sockets.
◉ Land. Answer: Land does not only refer to the earth but includes
the buildings on it; and it includes buildings separated from the
,earth, so that the owner of the topstorey flat is still a landowner.
'Land' also includes intangible things such as rights of way; and
some rights that are not attached to physical land
◉ What are the three characteristics of land. Answer: 1. It is
immobile (it cannot be moved).
2. It is industructable (it cannot be destroyed).
3. It is Unique (no land is identical).
◉ What legislation governs all aspects of mortgage brokerage and
real estate industries in Alberta?. Answer: The Real Estate Act
◉ What does the Real Estate Act Define Mortgage as (mortgage is
referred to as...)?. Answer: S.1(q) of the Act notes that within the Act,
"mortgage" refers to a mortgage of real property, or of a lease of real
property.
it can also refer to a charge on real property, on a lease of real
property, or on another mortgage for the purposes of securing the
repayment of money or another consideration
◉ What is the term "mortgage" typically used to refer to in the real
estate and mortgage brokerage industries. Answer: "mortgage" to
refer to a financial product with certain features and privileges.
,◉ who are the parties to a mortgage. Answer: The parties to the
mortgage contract are referred to as the mortgagee and mortgagor.
All mortgage documents contain these legal terms.
◉ What is a mortgage. Answer: A mortgage is generally defined as
the pledging of real property to a lender as security for a debt.
It is an interest in land created by a contract (mortgage document)
that is security for a loan made by the lender to the borrower.
Mortgages are a tool for a borrower to secure property for use,
whereas a lender views the mortgage as an investment to enable a
return on funds lent.
In simple terms, a mortgage is collateral over property given to the
lender for purposes of a loan's repayment.
◉ who is the mortgagee. Answer: also known as the lender, is the
individual or entity lending funds secured by real property.
They receive specified payments as stated in the mortgage contract.
Lenders include any person, group, or institution participating as a
lender in a debt obligation secured by a mortgage
, ◉ Who is the mortgagor. Answer: also known as the borrower, is the
individual or entity borrowing the funds secured by real property
They make specified payments according to the mortgage contract. I
◉ What is the National Housing Act (NHA). Answer: The Parliament
of Canada passed the National Housing Act (NHA) in 1938. It was
intended to promote the construction of new houses, the repair and
modernization of existing houses, and the improvement of housing
and living conditions.
It replaced and expanded the scope of the Dominion Housing Act of
1935
◉ what is the purpose of the NHA. Answer: The purpose of the NHA
is set out in section 3: In relation to financing for housing, the
purpose of the NHA is to promote housing affordability and choice
to facilitate access to housing and finance
and competition and efficiency in the provision of housing finance
to protect the availability of adequate funding for housing at low
cost
