Fundamentals Of Mortgage
Brokerage Practice Questions
Exam Questions And Answers
2025
Torrens system - ✔✔✔ANSWER-(Definition from internet). Operates on the
principle of "title by registration" rather than "registration of title". A buyer can
only receive a title if it is first registered, rather than buying a piece of land and
then register it later
Mirror principle - ✔✔✔ANSWER-Means that a current Certificate of Title
accurately reflects the current facts about the property. Therefore, all the current
interests related to any particular property are reflected in the current Certificate of
Title
Curtain principle - ✔✔✔ANSWER-Means that the current Certificate of Title
contains all the information about the title. All current registered interests in the
land appear on the Certificate of Title and any interests that have previously been
registered on title have been appropriately addressed (e.g. discharged, transferred).
,With this principle, the curtain goes down on prior interests. For example, lenders
whose mortgages have been paid out would have discharged their interests in the
land, or owners who have sold their properties would have transferred their
interests to new owners. Note: past property ownership and registered
encumbrances can be viewed by undertaking an historical title search
Insurance principle - ✔✔✔ANSWER-This principle means that the provincial
government, which is the central registry for land titles in Alberta, provides
compensation for loss of rights. A title issued within the system is indefeasible,
meaning that it is protected against any defect. In Alberta, the government
guarantees the accuracy of the title. As a result, anyone who suffers a loss due to an
error on the title or a fraudulent transaction is entitled to compensation from the
government. A person can rely on a Land Titles Office record, even if it turns out to
be in error. Compensation is funded through the collection of assurance fees from
land transactions and these monies become part of the Land Titles Assurance Fund
Land titles office (LTO) - ✔✔✔ANSWER-An organized registry system which
guarantees certainty (indefeasibility) regarding land title records and provides
compensation for error through the Land Titles Assurance Fund
Discharge of registration - ✔✔✔ANSWER-Removes or withdraws the registered
instrument (encumbrance) from the title. Therefore, it no longer appears on the
current title among the list of registered encumbrances
Transfer of title - ✔✔✔ANSWER-A document which transfers the title of the land
between parties
Land surveyors act - ✔✔✔ANSWER-Spells out who may and may not engage in
the practice of land surveying in Alberta
,Meridians - ✔✔✔ANSWER-Longitudinal lines running north and south. To
accommodate the curvature of the earth, correction lines are used roughly every 24
mines as part of the survey system. Alberta has the 4th, 5th and 6th within its
boundaries
Range - ✔✔✔ANSWER-Longitudinal lines, they are 6 miles apart and run
between the meridians. They are numbered consecutively moving to the west from
each meridian
Mortgage - ✔✔✔ANSWER-The pledging of real property to a creditor or lender
as a security for a debt
Mortgage - ✔✔✔ANSWER-An interest in land that is created by a contract
(mortgage document) that is security for a loan made by the lender to the borrower
Mortgage - ✔✔✔ANSWER-The security over property given to the lender for
repayment of the loan
Mortgagee - ✔✔✔ANSWER-The individual or entity that lends the funds secured
by real property for which they receive specified payments as stated in the
mortgage contract
Lender - ✔✔✔ANSWER-Another name for mortgagee
Mortgagor - ✔✔✔ANSWER-The individual or entity that borrows the funds
secured by real property for which they make specified payments according to the
mortgage contract
, Borrower - ✔✔✔ANSWER-Another name for mortgagor
Real property - ✔✔✔ANSWER-land, substances in or under the land other than
mines or minerals and all buildings, fixtures, structures affixed to the land
Real property - ✔✔✔ANSWER-Examples include acreages, hospitals, houses,
garages, sheds, driveways, fences, crops, trees and landscaping
Chattels - ✔✔✔ANSWER-Personal property is often referred to as this
Chattels - ✔✔✔ANSWER-May include items such as furniture, clothing,
household goods, some appliances, and some window coverings
Dealing in mortgages - ✔✔✔ANSWER-The activities undertaken by a mortgage
brokerage industry member that requires an authorization from RECA
Mortgage financing - ✔✔✔ANSWER-Can be broadly divided into 3 specialty
areas with each field requiring specific knowledge and expertise
Residential mortgages - ✔✔✔ANSWER-Occurs where borrowed funds are used
for the purchase of real property, for the construction of a new residence, for the
purchase of a new or existing residence, to refinance an existing mortgage or to
finance a renovation or consolidate a debt
Commercial and/ or industrial mortgages - ✔✔✔ANSWER-Involve properties
associated with commerce or trade
Brokerage Practice Questions
Exam Questions And Answers
2025
Torrens system - ✔✔✔ANSWER-(Definition from internet). Operates on the
principle of "title by registration" rather than "registration of title". A buyer can
only receive a title if it is first registered, rather than buying a piece of land and
then register it later
Mirror principle - ✔✔✔ANSWER-Means that a current Certificate of Title
accurately reflects the current facts about the property. Therefore, all the current
interests related to any particular property are reflected in the current Certificate of
Title
Curtain principle - ✔✔✔ANSWER-Means that the current Certificate of Title
contains all the information about the title. All current registered interests in the
land appear on the Certificate of Title and any interests that have previously been
registered on title have been appropriately addressed (e.g. discharged, transferred).
,With this principle, the curtain goes down on prior interests. For example, lenders
whose mortgages have been paid out would have discharged their interests in the
land, or owners who have sold their properties would have transferred their
interests to new owners. Note: past property ownership and registered
encumbrances can be viewed by undertaking an historical title search
Insurance principle - ✔✔✔ANSWER-This principle means that the provincial
government, which is the central registry for land titles in Alberta, provides
compensation for loss of rights. A title issued within the system is indefeasible,
meaning that it is protected against any defect. In Alberta, the government
guarantees the accuracy of the title. As a result, anyone who suffers a loss due to an
error on the title or a fraudulent transaction is entitled to compensation from the
government. A person can rely on a Land Titles Office record, even if it turns out to
be in error. Compensation is funded through the collection of assurance fees from
land transactions and these monies become part of the Land Titles Assurance Fund
Land titles office (LTO) - ✔✔✔ANSWER-An organized registry system which
guarantees certainty (indefeasibility) regarding land title records and provides
compensation for error through the Land Titles Assurance Fund
Discharge of registration - ✔✔✔ANSWER-Removes or withdraws the registered
instrument (encumbrance) from the title. Therefore, it no longer appears on the
current title among the list of registered encumbrances
Transfer of title - ✔✔✔ANSWER-A document which transfers the title of the land
between parties
Land surveyors act - ✔✔✔ANSWER-Spells out who may and may not engage in
the practice of land surveying in Alberta
,Meridians - ✔✔✔ANSWER-Longitudinal lines running north and south. To
accommodate the curvature of the earth, correction lines are used roughly every 24
mines as part of the survey system. Alberta has the 4th, 5th and 6th within its
boundaries
Range - ✔✔✔ANSWER-Longitudinal lines, they are 6 miles apart and run
between the meridians. They are numbered consecutively moving to the west from
each meridian
Mortgage - ✔✔✔ANSWER-The pledging of real property to a creditor or lender
as a security for a debt
Mortgage - ✔✔✔ANSWER-An interest in land that is created by a contract
(mortgage document) that is security for a loan made by the lender to the borrower
Mortgage - ✔✔✔ANSWER-The security over property given to the lender for
repayment of the loan
Mortgagee - ✔✔✔ANSWER-The individual or entity that lends the funds secured
by real property for which they receive specified payments as stated in the
mortgage contract
Lender - ✔✔✔ANSWER-Another name for mortgagee
Mortgagor - ✔✔✔ANSWER-The individual or entity that borrows the funds
secured by real property for which they make specified payments according to the
mortgage contract
, Borrower - ✔✔✔ANSWER-Another name for mortgagor
Real property - ✔✔✔ANSWER-land, substances in or under the land other than
mines or minerals and all buildings, fixtures, structures affixed to the land
Real property - ✔✔✔ANSWER-Examples include acreages, hospitals, houses,
garages, sheds, driveways, fences, crops, trees and landscaping
Chattels - ✔✔✔ANSWER-Personal property is often referred to as this
Chattels - ✔✔✔ANSWER-May include items such as furniture, clothing,
household goods, some appliances, and some window coverings
Dealing in mortgages - ✔✔✔ANSWER-The activities undertaken by a mortgage
brokerage industry member that requires an authorization from RECA
Mortgage financing - ✔✔✔ANSWER-Can be broadly divided into 3 specialty
areas with each field requiring specific knowledge and expertise
Residential mortgages - ✔✔✔ANSWER-Occurs where borrowed funds are used
for the purchase of real property, for the construction of a new residence, for the
purchase of a new or existing residence, to refinance an existing mortgage or to
finance a renovation or consolidate a debt
Commercial and/ or industrial mortgages - ✔✔✔ANSWER-Involve properties
associated with commerce or trade
