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Ayaz and his family are purchasing a property and require a mortgage from a bank. Ayaz is the: - Mortgagor The Real Estate Act indicates that a property inspection must be done on all residential purchases. - FALSE ... it is up to the client however you should always advise the buyer. Which one of the following would not be included in the Annual Operating Expenses. - Income Taxes Bare Land Condominium boundaries are determined by: - The width and depth of each unit of land. According to the Statute of Frauds, which one of the following types of contracts doesn't need to signed: - Contacts that by agreement can be completed within 1 year. For which of the following reasons can a landlord can gain entry to tenant's apartment without consent of the tenant? - If there is no heat in the building When the lender is considering the 5 C's of credit, which one of the following will be "collateral"? - the property used as security loan Alexandra E. Banks, an licensee with Westview Realty, is trying to convince a purchaser to make an offer on a property. The buyer is concerned about the condition of the carpets. Alexandra's brother is the owner of Banks Carpets Ltd., and she offers to pay for 30% of the cost of replacing the main floor carpeting if they are purchased through her brother. She details this agreement in writing. Prior to possession date, Alexandra leaves the industry and takes a job as a salesperson for Banks Carpets Ltd. The purchaser approaches the broker about the inducement but the broker has no record in the file and knows nothing about it. The purchasers approach Alexandra at Banks Carpet but she refuses to provide them with the 30%. Who is going to pay for the carpets? - the brokerage because all inducements should be offered by and through the brokerage Inducements - can only be offered by and through the brokerage. The broker should have policies in place detailing what must happen when offering inducements. (ex Alexandra may have disregarded this policy. Hopefully, the brokerage has not paid out all of Alexandra's commissions and can withhold the amount required to pay for the inducement.) An interior door is typically hollow core. What is used in the interior of the hollow core door. - cardboard baffles Which of the following demonstrates the Principal of Highest and Best Use? - Building a high rise building on land with the applicable zoning Principal of Highest and Best Use - highest and best use seeks the current use that is the most likely to produce the greatest return and appraisers may also consider its most profitable potential uses in the reasonable future. True or False Real Estate often constitutes the largest single element of individuals personal wealth. - True Which principle states " that an informed buyer will pay no more for a property than the the cost of an equally desirable similar property. - the principal of substitution When an industry professional breaches the Rules, RECA will do an investigation and then: - RECA will do the investigation and if there is a violation of the Rules they will send it for a hearing. The courts system is not used unless the respondent appeals the results of the case. A real estate professional lists a property and after about a month on the market the seller is getting anxious to sell and tells the real estate professional to get is sold. The real estate professional advertises the property for $10,000 under the list price in hopes to get an offer from a potential buyer. Is this misleading advertising? - Yes, because it was advertising the property at a different price than the agreed listing price. _____________ authority involves describing what actions may be taken by an agent on behalf of a principal. Whenever possible it should be in writing. - Express A real estate professional has a small warehouse listed for sale. The warehouse is a perfect fit for their brother's business and writes an offer with him. Before presenting the offer the real estate professional tells the seller that the buyer is their brother. The seller thinks about it and tells the real estate professional that they are OK with the situation. This is an example of which fiduciary duty? - disclose conflicts of interest 6 Fiduciary Duties - Utmost loyalty Avoid conflicts of interest Disclose conflicts of interest Not make secret profits Handle confidential information properly To account True or False: The rights of the real property ownership are subject to the following limitations: The right of government to tax real property. The right of government to expropriate it for the public benefit. The right of government to establish regulations and codes regarding its use. - true Which "R" value has a higher insulation value: - higher the number higher the insulation value You are doing a competitive market analysis on a property. The property is a 2200 sq. ft. 4 bedroom 2 story. It does have a garage. There is a similar home in the neighborhood that just sold for $469,000 but it doesn't have a double garage and is only a 3 bedroom. The garage is worth $20,000 and the extra bedroom would be worth $10,000. What is the adjusted price of the subject property? - 499,000 A buyer has a conditional purchase contract on a sellers home. The home inspection reveals that the roof is need of repair. The buyer's representative approaches the seller's representative indicating that if the seller is will to split the cost of a new roof with the buyer, the buyer will remove the home inspection condition and the purchase contract will be unconditional. If the seller accepts this the agreement will be written on a(an): - Addenda What should a landlord do with the security deposit when a tenant moves out? - Deliver a statement of account and return the remaing balance within 30 days after the tenancy ends. True or False: A real estate professional may hold authorization to be a real estate professional and a real estate appraiser. - TRUE TIPP is a short form for: - Tax instalment Payment Plans This definition: this refers to the right inherent in the ownership of a commodity. Is the definition of: - Property The Dower Act applies to: - A couple that is legally married and only one name on title. There are 2 encumbrances that take priority over mortgages on title. Which ones are they and choose the order that they have priority over mortgages. - Property taxes and condominium fees. An owner of a property is wanting to appeal their assessed value of their property. They approach a real estate professional and ask them to appraise the property for the appeal. The real estate professional answer will be: - No, I'm not licensed to do appraisals, you will have to get an appraiser. Your clients bought their property 3 years ago and today it is worth $155,000 more in market value. This demonstrates which Principle of Property Valuation. - principal of change A real estate bubble is created when: - The price of real estate increases faster that the rate of inflation Which of the three (3) methods of terminating a representation relationship is defined as: The principal and agent both agree to end the represention relationship. - mutual consent A real estate professional is in a dispute with a client and the broker is attempting to facilitate to resolve the situation.The real estate professional should: - Keep any discussions between the real estate professional and the broker. Which of the five (5) methods of terminating a representation relationship by operation of law is defined as: A representation relationship ends if either the principal or agent becomes unable to satisfy his or her financial commitments. - bankruptcy the 5 methods of terminating representation: - Impossibility Illegality Death Mental incapacity Bankruptcy If a property inspector pays a real estate professional a referral fee: - the referral must be disclosed with the client Isaac, the broker for Apex Realty, wishes to take an extended holiday to the Greek Islands. According to the Rules what must he do ? - Appoint an associate broker or licensee employed by the brokerage to take over his duties. In Kohlberg's Model of Moral Development which on is Level I of moral development. - Moral development is predominantly focused on individual self-interest. Which of the following best illustrates a non-conforming use? - A service station is operating in a neighbourhood and the zoning on their lot changes, which no longer allows the land to be used for a service station carbon monoxide - is odourless and colourless True or False An industry member is also an engineer and is a member of that association. They are disciplined from that association for actions related to work as an engineer. This misconduct may also be a 'conduct deserving of sanction' according to the Rules. - true Two friendly west end real estate professionals were talking about dividing the MacDonald subdivision up so they were not competing against each other. According to the Competition Law this is an example of which illegal arrangement. - Market Division True or False When a buyer requires a mortgage to purchase a property, the title of the property will be placed in the name of the mortgage company until such time as the buyer pays off the mortgage. - false the property remains registered in the name of the buyer while the mortgage is registered on the title of the property as an encumbrance. The owner of a property is unable to pay the taxes on the property. Which of the following is the right the Crown has to have title returned to it? - power of escheat A homeowner has just received their assessment notice. The assessed value of their property is $540,000. The tax rate is $6 per $1000 of assessed value. How much will their taxes be? - 3240 Which type of a roof will have any of the following as a roof covering: asphalt or wood shingles metal sheeting rubber or concrete tiles - Steep-slope Roof As a real estate professional you are helping your client to fill out a mortgage loan application. According the the Act: - You cannot do this unless you are a Mortgage Broker. The estoppel certificate, which is used when selling a condominium, contains essential information. Examine the statements below and choose the one that best describes the estoppel certificate. - It states the amount of the condominium fees, when they are payable, if there are any arrears and if the owner is in violation af any specific bylaw Successful self-management relies on the effectiveness of the Board of Directors. Effective Boards of Directors usually exhibit certain qualities that relate to their successful functioning. The following is a definition of which one of those qualities? "Refers to encouraging candour and productive discourse at meetings and helping to ensure a respectful culture and safe environment for thoughtful dissent." - integrity The client's duty to compensate the real estate professional for liabilities (damages, losses or expenses) the real estate professional incurs in carrying out his/her responsibilities," is a definition of which duty the client has to the real estate professional ? - Indemnification To amend the Real Estate Act Rules the Council: - Has the authority to create and amend the Rules. The definition of "weeping tile" is: - A perforated tile surrounded by aggregate rock place along the footings of a basement wall. The person or persons who lends the money is/are referred to as: - The Mortgagee(s) There are four forces that influence the value of real estate. Which one of the following is included in these forces? - Government, economic, social, physical This is the defination of which environmental hazard: "Once airborne, can cause health threat, such as lung or stomach cancer." - Asbestos If an industry member of the real estate and mortgage industries have a question concerning regulatory compliance or standards they may call: - RECA's Practice Advisor for advice. Before you start the licensing courses and if you are concerned about something in your past that may affect your ability to get licensed you may: - Request a stability review for licensing from the Executive Director. A young married couple wish to purchase a property. Because of their age and the fact that they just started their jobs the financial instuition required them to have a ____________________. - Guarantor Is your client's employment information considered personal information? - yes