RECA Exam| More than 200 Real Questions and Verified Answers| Grade A| 2023/ 2024 Update

RECA Exam| More than 200 Real Questions and Verified Answers| Grade A| 2023/ 2024 Update QUESTION The Oleksiaks paid $410,000 ten years ago for a house in a small town. There is now an economic downturn forcing the closure of a local industrial plant. As with many residents of the town, the Oleksiaks were employed by the plant and will now have to relocate to the city. When the Oleksiaks go to sell their home, the property is now valued at $350,000. Which of the following Principles of Value best describes this scenario? A) Principle of Regression B) Principle of Surplus Productivity C) Principle of External Factors D) Principle of Increasing and Decreasing Return Answer: C QUESTION Which Principle of Value states that homes built in a similar style to others in the area may increase property values? A) Principle of Conformity B) Principle of Balance C) Principle of Substitution D) Principle of Competition Answer: A QUESTION What is meant by the term 'straw buyer'? A) A buyer who participates in mortgage fraud for housing B) Anyone who lets their identity be used to buy property C) A person who knowingly participates in mortgage fraud D) All statements are correct Answer: B QUESTION Which of the following statements best describes 'fraud for housing'? A) A buyer who completes a purchase contract for a property using an inflated amount B) A buyer who purchases a property with the intention of using it for criminal activities C) A buyer who uses illegal funds as part of the down payment for the purchase of a property D) A buyer who attempts to qualify for mortgage financing by falsifying or misrepresenting information required by the lender Answer: D QUESTION Zack wants to buy a house, but does not have enough of his own funds to cover the gap between the required down payment and the amount for which he qualifies. He notices an ad offering houses for sale with 'low down payments' and calls the number. Herbert, a mortgage investor, answers the call and tells Zack that he can advance him the required funds and register a mortgage once the title transfers. He tells Zack this is a private arrangement and not to mention it to any mortgage lenders. What is this scheme called? A) False deposit B) Secret second C) Equity access D) Debt-consolidation Answer: B QUESTION Susan has been unable to work due to a recent illness and has missed making her mortgage payments for the last two months. Steve contacts Susan and claims to be a mortgage specialist working on behalf of the lending institution who provided Susan the mortgage loan. Steve advises Susan that his company can make the mortgage payments until she can get back to work but requires an upfront fee of $500 to transfer the title of the property. As Susan does not want to default on her mortgage, she agrees to forward Steve the funds. Which mortgage fraud scheme has Steve perpetrated? A) Equity access B) Private financing C) Vendor cash-back D) Debt consolidation or foreclosure Answer: D QUESTION Which of the following statements is a characteristic of a mortgage? A) It is the lender's security for repayment of a borrower's debt B) It is a transfer of an interest in land from the borrower to the lender C) It is the pledging of real property by a borrower to a lender as security for a debt D) All statements are correct Answer: D QUESTION Which of the following statements is correct regarding the remedy of quantum meruit? A) The injured party cannot claim damages for any loss incurred B) The injured party is entitled to the reasonable value of the services performed C) The injured party is released from his or her contractual obligations D) The injured party is compelled by court order to fulfill his or her contractual obligations Answer: B QUESTION Which of the following does NOT apply to consideration? A) Consideration must be lawful B) Past consideration is no consideration C) Consideration always involves money D) Consideration is anything of value promised to another