RECA Residential Exam | Questions and Answers | 100% Pass Guarantee

RECA Residential Exam | Questions and Answers | 100% Pass Guarantee GST - ans- property sellers are the only ones who can determine is GST applies to their property - seller is responsible to collect GST unless seller is a non-resident of Canada Conservation Easement - ans- allows the alberta government to designate private lands as protected - regulated the allowable uses of land - may restrict certain activities on the land Telecommunications - ansSatellite Internet - Satellite in orbit, gateway, dish Final Mile Rural connectivity - initiative between service alberta and Alberta Agriculture - brings highspeed internet to unserviced areas - currently 94% have access to high speed - want 98% Fixed Wireless - uses radio waves to connect to internet Alberta Supernet - created to connect schools, hospitals ect - promotes rural economic development + business opportunities Alberta 2nd call - unregistered underground facilities Consumer Relationship Guide - ans- makes consumers aware of relationship options available to them - should be discussed when entering into relationship with prospective client Interest only - at maturity the entire principal must be repaid, no time during mortgage term is the principal reduced Mortgage penalties - ansif borrower repays mortgage before end of term, lender is entitled to compensation. Three month interest penalty = outstanding Balance x (annual int. rate/12 month) x 3 months interest rate differential (IRD) IRD=(annual int. rate - current int. rate)/12 X months remaining in Mortgage term Lenders uses whichever method is higher High ratio Mortgage vs Conventional - ansLoan to value - determines whether a mortgage is conventional or high ratio LTV = Mortgage amount/Value of Property - if less than 80% its a conventional mortgage -If 80% + high ratio, higher risk, loan insurance required Loan insurance protects lenders from losses related to payment default by borrowers (CMHC, Genworth, Canada Guaranty) - allows borrows to purchase a property with a minimum down payment of 5% Borrower vs Lender - ansBorrower obligations - repay mortgage and loan interest - keep property adequately insured - maintain the condition of the property - pay any charges against the title - whether professional has entered into representation relationship with other party - any conflicts of interest - any other facts that may influence consumers decision to proceed with relationship made to clarify and provide proof of undertanding in event issues or disputes arise Written Service Agreement vs Customer Acknowledgement Forms - ansWritten Service Agreement - when consumer chooses a representation relationship - becomes a client - provide signed copy to brokerage Customer Acknowledge forms - non-representation relationship - becomes a customer - provide signed copy to brokerage PIPEDA - ans- Federal legislation PIPA - ansAlberta's legislation, how private organizations use and disclose personal information. Power of Attorney - ansa 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 - ansGeneral 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 - ansCourt ordered sale usually as a way to resolve legal matters - primary debt recovery method for default mortgages Foreclosure - anslegal 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 - ansLegislation that establishes technical specifications for new building construction and construction materials Building Permit - anstypically valid for one year during which construction process must be initiated Factory Built Construction - ansManufactured - 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