RECA Residential Exam Questions And Answers Rated A+

5 C's of Borrower Credit - Answer-Character, Capital, Capacity, Collateral, Credit 5 Ds of Role Clarity - Answer-1. Discuss 2. Determine 3. Document 4. Disclose 5. Do Abandoned wells - Answer-- physical threat - allowing surface runoff to directly enter an aquifer - permitting cross contamination of different aquifers by a well bore can tell that its running dry - air bubbles in waterline - no water flow - water outages after heavy use - pump does not produce as much water as it used to - pump runs for long time before shutting off - low water pressure - sediment in water making it appear muddy Alberta Building Code - Answer-Legislation that establishes technical specifications for new building construction and construction materials Alberta Safety Codes Act - Answer-provincial legislation that sets specifications for new building. Alberta Wildlife Act - Answer-- to identify, recover and protect species at riskAlternative energy sources - Answer-- solar panels - wind energy - solar shingles - geothermal energy systems Borrower vs Lender - Answer-Borrower obligations - repay mortgage and loan interest - keep property adequately insured - maintain the condition of the property - pay any charges against the title Rights - possession of property - redeem or further mortgage the property - receive a discharge of the mortgage Lender Obligations - discharge the mortgage upon payment - Not interfere with borrowers use of property - Provide annual statement of principal, interest and taxes Rights - assign the mortgage - be paid under terms of mortgage Building Floors - Answer-Beams - structural components that create base Joist - support part of structure, placed horizontal - supports floor or ceiling Bridging/Blocking - adds to load carrying capabilities and reduces the potential for movement.Building Permit - Answer-typically valid for one year during which construction process must be initiated CADS - Answer-document used to register encumbrances, financial obligations, and pending litigations - includes legal description, name of condo corp and address, number of units, registered bylaws, any financial obligations found on SPIN2 Calculations for Adjustments to Comparable Properties - Answer-Percent adjustments = ((New-old)/old X 100)/ number of months between sales ex. overall time adjust of -4% = sale price x 96% ex. four months ago with time adjustment of 1/2% 1/2% x 4 = 2% overall time adjustment sale price x 1.02 = Caveats - Answer-- notice by another party claiming an interest in the land - may prevent the transfer of land to a new owner - the land titles office must provide notice of the caveat to the registered owners Ceilings - Answer-Valuted - follow roofline, unequal sides Cathedral - two equal sides (Aframe) Drop- covers pipes and wires Coffered - insets, waffle like