RECA RESIDENTIAL
EXAM/RECA FUNDAMENTALS
OF MORTGAGE BROKERAGE
EXAM
Power of Attorney - ANSWERS-a legal document authorizing
someone to act on your behalf
- must be 18
- POA must be written, dated and signed by both donor and witness
- donor must be mentally capable or contract is void
- only effective as long as donor is alive, will takes effect once death
Types of POA - ANSWERS-General POA
- has no limits on powers of the attorney
- can make all decisions regarding financial and legal affairs
- exception where the donor resides and health care
Special POA
- make certain decisions
- also called limited POA
- may grant authority to oversee sale, deals with land
- must be registered on Certificate of Title
,Immediate POA
- takes effect as soon as POA is signed, dated and witnessed
- terminates upon loss of mental capacity or death
Enduring POA
- immediately upon being signed, dated and witnessed
- continues if donor becomes incapable, mentally incapacitated
- must include statement whether it takes effect immediately and
continues...
Judicial Sale - ANSWERS-Court ordered sale usually as a way to
resolve legal matters
- primary debt recovery method for default mortgages
Foreclosure - ANSWERS-legal action supervised by the court
following a default on the mortgage.
-transfers the real property from the borrower to the lender and erases
interests on title.
Alberta Building Code - ANSWERS-Legislation that establishes
technical specifications for new building construction and
construction materials
Building Permit - ANSWERS-typically valid for one year during
which construction process must be initiated
,Factory Built Construction - ANSWERS-Manufactured
- three sections that are 95% complete when they leave the factory.
- secure the sections to the foundation and join together
- can often move in the same day or within days
- saves time and mony
Modular Construction
- manufacturing three dimensional units, 85 percent complete when
they leave
- requires few weeks on site to be complete
- allows for creation of multi-story buildings
Panelized construction
- creation of pre-fabricated wall, floor or roof panels
- panels may be completed fully or partially
- may consist of just the frame or fully complete with windows and
siding
Alberta Safety Codes Act - ANSWERS-provincial legislation that sets
specifications for new building.
Components of Construction - ANSWERS-Lot
Substructure - building foundation
Superstructure - above grade construction
includes; envelope, service systems, interior
, - building envelope - everything that encloses the structure
- roof, exterior walls, windows, doors, and interior walls
- building service systems - supply's essential services
- heat, electricity, water
- interior - interior walls, features, finishes, and fixtures
Pre-wired
- security systems, internet, fireplace controls, windows
Preserved Wood foundation - ANSWERS-treated wood, must be
certified with a stamp.
- must be examined by engineer or architect stating conforms to the
Alberta Building Code requirements
- poured concrete is the most common foundation
Fiduciary Representation - ANSWERS-- Trust and confidence
- Best interests
- Loyalty
5 Ds of Role Clarity - ANSWERS-1. Discuss
2. Determine
3. Document
4. Disclose
EXAM/RECA FUNDAMENTALS
OF MORTGAGE BROKERAGE
EXAM
Power of Attorney - ANSWERS-a legal document authorizing
someone to act on your behalf
- must be 18
- POA must be written, dated and signed by both donor and witness
- donor must be mentally capable or contract is void
- only effective as long as donor is alive, will takes effect once death
Types of POA - ANSWERS-General POA
- has no limits on powers of the attorney
- can make all decisions regarding financial and legal affairs
- exception where the donor resides and health care
Special POA
- make certain decisions
- also called limited POA
- may grant authority to oversee sale, deals with land
- must be registered on Certificate of Title
,Immediate POA
- takes effect as soon as POA is signed, dated and witnessed
- terminates upon loss of mental capacity or death
Enduring POA
- immediately upon being signed, dated and witnessed
- continues if donor becomes incapable, mentally incapacitated
- must include statement whether it takes effect immediately and
continues...
Judicial Sale - ANSWERS-Court ordered sale usually as a way to
resolve legal matters
- primary debt recovery method for default mortgages
Foreclosure - ANSWERS-legal action supervised by the court
following a default on the mortgage.
-transfers the real property from the borrower to the lender and erases
interests on title.
Alberta Building Code - ANSWERS-Legislation that establishes
technical specifications for new building construction and
construction materials
Building Permit - ANSWERS-typically valid for one year during
which construction process must be initiated
,Factory Built Construction - ANSWERS-Manufactured
- three sections that are 95% complete when they leave the factory.
- secure the sections to the foundation and join together
- can often move in the same day or within days
- saves time and mony
Modular Construction
- manufacturing three dimensional units, 85 percent complete when
they leave
- requires few weeks on site to be complete
- allows for creation of multi-story buildings
Panelized construction
- creation of pre-fabricated wall, floor or roof panels
- panels may be completed fully or partially
- may consist of just the frame or fully complete with windows and
siding
Alberta Safety Codes Act - ANSWERS-provincial legislation that sets
specifications for new building.
Components of Construction - ANSWERS-Lot
Substructure - building foundation
Superstructure - above grade construction
includes; envelope, service systems, interior
, - building envelope - everything that encloses the structure
- roof, exterior walls, windows, doors, and interior walls
- building service systems - supply's essential services
- heat, electricity, water
- interior - interior walls, features, finishes, and fixtures
Pre-wired
- security systems, internet, fireplace controls, windows
Preserved Wood foundation - ANSWERS-treated wood, must be
certified with a stamp.
- must be examined by engineer or architect stating conforms to the
Alberta Building Code requirements
- poured concrete is the most common foundation
Fiduciary Representation - ANSWERS-- Trust and confidence
- Best interests
- Loyalty
5 Ds of Role Clarity - ANSWERS-1. Discuss
2. Determine
3. Document
4. Disclose
