RECA EXAMS WITH ACTUAL CORRECT QUESTIONS , Exams of Nursing

Download RECA EXAMS WITH ACTUAL CORRECT QUESTIONS and more Exams Nursing in PDF only on Docsity! RECA EXAMS WITH ACTUAL CORRECT QUESTIONS AND VERIFIED RATIONALES ANSWERS LATEST 2024 ALREADY GRADED A+ 100% GUARANTEED PASS Which of the following is NOT a purpose of RECA? A) To set and enforce standards of conduct for the industry B) To administer the Act as provided in the Act C) To amend the Act as determined by Council D) To protect against and suppress mortgage fraud C Which of the following statements does NOT apply to a duty-based approach to ethical decision- making? A) This approach seeks the best result for the most number of people B) This approach perceives an individual's intentions or motives as important C) This approach is based on a belief in a universal moral system of ethical reasoning D) This approach believes that an individual should do the right thing because it is the right thing to do A What is the maximum amount the Real Estate Assurance Fund may pay per claimant for damages or losses related to the services of a real estate professional? A) $100,000 maximum B) $35,000 maximum C) $25,000 maximum D) No maximum amount B What is the purpose of the Real Estate Assurance Fund? A) To compensate a real estate brokerage for the loss of commissions related to unsuccessful trades B) To compensate sellers when potential buyers fail to obtain the required mortgage financing to purchase the property C) To compensate consumers who have received a court judgment against a real estate professional for fraud or breach of trust D) To compensate property owners in the event that foreclosure proceedings are commenced during a real estate transaction C Which of the following statements describe civil liability? Private legal action between the disputing parties Public legal action between the government and the accused party Involves a plaintiff and a defendant appearing in court Established by the courts at the conclusion of legal proceedings A) Statements I, II and III B) Statements I, III and IV C) Statements II, III and IV D) All statements apply B Which of the following statements include actions that may be considered suspicious by a real estate brokerage? A buyer purchases a property without first viewing it A buyer purchases a property in the name of another person A buyer uses cash to purchase a property A buyer is slow to confirm their identity A) Statements I, II, and III B) Statements II, III and IV C) Statements I, III and IV D) All statements apply A Which of the following statements are correct regarding real estate brokerages and privacy law? All brokerages within Alberta must comply with federal privacy legislation Brokerages must designate a Privacy Officer to be accountable for compliance Brokerages with privacy policies are not required to designate a Privacy Officer Brokerage privacy policies must be consistent with the applicable privacy legislation A) Statements I and II B) Statements II and III C) Statements II and IV D) Statements III and IV Next Question C Which of the following terms relates to the right of individuals to have control over their personal information? A) Privacy B) Exclusivity C) Inaccessibility D) Confidentiality Trust and confidence A) Statements I, II and III B) Statements II, III and IV C) Statements I, III and IV D) Statements I, II and IV D Which of the following describes the party being represented by another party in a representation relationship? A) Agent B) Third party C) Principal D) Customer C When are fiduciary duties owed by a real estate professional? A) As soon as they receive confidential information from a client B) As soon as they establish a representation relationship with a customer C) As soon as they enter into a written service agreement with a customer D) As soon as they are granted express authorities from a client A Which of the following categories of brokerage services involves numerous services that require the greatest level of discretion or judgement? A) Mere posting service B) Limited brokerage services C) Full brokerage services D) Property management services D Which of the following best describes statute law? A) An accumulation of laws enacted by various levels of government B) An accumulation of laws enacted by the courts C) A rigid code of rules enacted by the provincial government D) A rigid code of rules enacted by the federal government A Which of the following situations is an example of an injunction? A) The court forces a party to complete its contract with the another party B) The court prevents the party from selling the property to another party C) The court forces a landlord to pay the tenant damages for ending the lease without cause D) A tenant does basic repairs on a property and sues the landlord for reimbursement B Which of the following statements does NOT apply to RECA's position on the use of electronic agreements? A) It should be considered legal advice to real estate professionals B) Its use is subject to case law in this area C) Its use is subject to judicial consideration of the legislation D) Those using this technology need to be monitor the legal situation A The Dower Act provides property rights to certain individuals. In which of the following situations does the Dower Act NOT apply? A) A married couple who are both titled as owners of the property where they reside B) The man bought the property before he married. He and his spouse now live on it, but the spouse is not titled C) An income property where one spouse has resided on the property during the time of the marriage D) A couple living on the property with only one on title, and both sign the mortgage refinancing application A If performance of a contract is impossible, what is the reason for the contract ending? A) Breach B) Agreement C) Frustration D) Performance C Which rights of ownership of land are included in the Bundle of Rights? A) Possess, use, enjoy and sell the land B) Possess, use, enjoy and develop the land C) Acquire, use, enjoy and sell the land D) Acquire, lease, mortgage and dispose of the land A Rodney has applied for a mortgage through Regional Mortgage Brokers Ltd. The mortgage associate there explains that the term of the mortgage is for 3 years and Rodney is in agreement. While signing the mortgage document with the lawyer, Rodney sees that the term is for 5 years. Rodney does not mention the misunderstanding and accepts the 5-year term. Based on an understanding of contracts, what type of mistake is this? A) Common mistake B) Mutual mistake C) Unilateral mistake D) Misrepresentation of fact C The assessment of property for taxation purposes is carried out under which provincial statute? A) The Property Assessment Act B) The Condominium Property Act C) The Municipal Government Act D) The Real Estate Assessment Act C What is meant by the term 'real property'? A) Raw or otherwise unimproved land B) Raw land plus fixed or permanent improvements C) Tangible attributes of the land plus rights of ownership D) Attributes of the land and buildings situated on the land C Under the Torrens System, which principle ensures that the current Certificate of Title accurately shows the current facts about the property? A) The Curtain Principle B) The Mirror Principle C) The Insurance Principle D) All of the Principles apply B Which statement is correct if a property is held in joint tenancy? A) If 2 individuals own a property, they each have a 50 % interest in the property B) If 2 individuals own a property, 1 person may have a 60 % interest while the other has 40 % C) If 2 individuals own a property, they both have an equal interest in the property as a whole D) Ownership of a property in joint tenancy only applies to married couples C According to the Municipal Government Act, a municipality establishes bylaws that classify how land within its jurisdiction may be used. What are these classifications referred to as in the bylaws? A) Land use zones B) Land use districts C) Land use categories D) Land use developments Which statement best describes post-tension cables? A) A construction system that involves interconnected cables B) A construction method that reinforces concrete C) A construction method that reinforces posts with cables D) A construction system that puts posts under tension B In which of the following situations would a condominium corporation NOT need to pass a special resolution? A) To use Reserve Fund monies for improvements B) To make a change to the bylaws C) To levy a special assessment on all units D) To buy or sell components of the common property C How often must a condominium corporation hold an annual general meeting? A) Within 12 months of the last one B) Within 15 months of the last one C) Within 18 months of the last one D) Within 20 months of the last one B Which statement is correct regarding the number assigned to a Condominium Plan? A) Indicates the total number of units in the condominium B) Indicates the year the Plan was registered at Alberta Land Titles C) Is an arbitrary number assigned when the Plan is submitted D) Is a number assigned by the Alberta Land Surveyor who drew the Plan B The bylaws of the condominium corporation may be changed from time to time. Bylaw changes may be passed at which type of meeting? A) Extraordinary meetings of the condominium corporation B) General meetings of the condominium corporation C) Annual general meetings of the condominium corporation D) At all of these meetings bylaw changes may be passed D Under the legislation, the right of rescission is best described by which statement? A) The ability of purchasers to cancel their purchase contract with a developer B) The ability of purchasers to cancel their purchase contract with a reseller C) The ability of purchasers to cancel their purchase contract with any seller D) The ability of purchasers to cancel their purchase contract for any reason A The HiHo Condominium was established in 2003. Which statement is correct regarding how often a Reserve Fund Study must be completed? A) 2 years B) 3 years C) 5 years D) 10 years C Which formula correctly illustrates the relationship among the components of a Balance Sheet? A) Equity = Assets + Liabilities B) Assets = Liabilities + Equity C) Liabilities = Equity + Assets D) None of these are correct B Which of the following describes a condominium administrator? A) Court-appointed manager B) Board-hired manager C) Board-elected manager D) Auditor-appointed manager A Which of the following documents may be found online through SPIN? The meeting minutes The unit title and registered instruments The Condominium Additional Plan Sheet The Real Property Report A) Statements II and III B) Statements I and III C) Statements II and IV D) All statements are correct A Which of the following is required to pass a special resolution? A) Support from a total of 50% of eligible voters with at least 2,500 of the unit factors B) Support from a total of 50% of eligible votes with at least 5,000 of the unit factors C) Support from a total of 75% of eligible voters with at least 5,000 of the unit factors D) Support from a total of 75% of eligible voters with at least 7,500 of the unit factors D Which of the following statements defines the purpose of unit factors? Sets unit responsibility for common area expenses Defines the voting rights of the unit owner Determines the monthly contribution for the unit Sets the value of the unit for property tax purposes A) Statements I, II, and III B) Statements I, III, and IV C) Statements II, III, and IV D) All statements are correct A Which of the following statements is correct regarding how soon a Reserve Fund Study must be completed for a new condominium? A) 2 years B) 3 years C) 5 years D) 10 years A Which of the following are considerations when referring clients to real estate appraisers? They are authorized by RECA as real estate appraisers They have experience performing real estate appraisals They have experience with the type of real estate to be appraised They carry errors and omissions insurance A) Statements I, II, and III B) Statements II, III, and IV C) Statements I, III, and IV D) All statements apply D Which of the following factors are included when valuing a real estate property? Chattels or personal property Fixed improvements Property rights Surface resources A) Statements I, II, and III B) Statements II, III, and IV C) Statements I, III, and IV D) All statements apply B Which of the following in NOT an approach used by real estate appraisers when performing an appraisal assignment? A) Direct Comparison Approach C) Equity access D) Debt-consolidation B From a brokerage perspective, which of the following is NOT a mortgage fraud prevention best practice? A) Ensure training on RECA's mortgage fraud red flags detection and prevention is implemented B) Ensure training on the office policies and procedures for mortgage fraud detection and prevention is implemented C) Ensure the office policies and procedures for mortgage fraud detection and prevention are submitted to RECA for review D) Ensure the office policies and procedures for mortgage fraud detection and prevention are reviewed and updated C Personal Trades in Real Estate Disclosure Level 1 Other party represented by another brokerage. Personal Trades in Real Estate Disclosure Level 2 Other party not represented by real estate professional. Personal Trades in Real Estate Disclosure Level 3 Other party represented by same brokerage. Real Estate Assurance Fund Helps to protect consumers when working with Real Estate Professionals. Pays if a professional commits fraud, breach of trust or failed to disburse monies held in trust. Land The ground and that which is beneath and above it. Property The rights inherent in the ownership of a commodity. Real Estate The unimproved or raw land plus any improvements that are fixed to the land. Real Property Refers to the land, any permanent improvements to the land, and the property rights that go with the land. Encumbrance Registered interests that affect the title of the land. Easement Provides right of way for a party to use the land of another. Caveat A notice or warning that relates to an interest in the land. Encroachment Occurs when part of a structure is built on adjoining land. Restrictive Covenant Places limitations on the buildings and/or the land. Lis Pendens Provides a notice on title that indicates pending litigation. Property Taxes Has the highest priority of financial interests in the land. Condo Fees Has a higher priority than the first mortgage. Lien Places a claim for an unpaid debt on the land. Builders Lien Debt related to construction materials or work. Writ of Enforcement A judgement for debt that has been placed on the land. Conventional Condo Plan Units are defined spaces within a structure. Bare Land Condo Plan Boundaries for units are defined by the width and depth of each parcel of land. Barely Blended Condo Plan Allows units in Bare Land Condo Plan to be redivided into smaller units. Principle of Balance States that value is created and sustained when there is a balance or equilibrium. Principle of Change It states that economic, social and political factors are constantly in play, contributing to changing property values. Which of the following may RECA amend from time to time? A) The Act B) The Rules C) The Regulations D) All the statements are correct B According to the Act, which of the following statements apply if an industry professional whose conduct is subject to disciplinary proceedings make application to withdraw from the profession? A) If the application is approved, RECA issues a news release B) If the application is approved, all disciplinary proceedings are terminated C) If the application is approved, it is a lifetime ban from all industry professions governed by RECA D) All the statements are correct D Brainpower Read More Previous Play Next Rewind 10 seconds Move forward 10 seconds Unmute 0:00 / Brokerage records must be accessible to RECA for inspection A) Statements I, II, and III B) Statements I, II, and IV C) Statements I, III, and IV D) All the statements are correct D PIPEDA Federal - privacy act PIPA Provincial - Privacy act CASL Canada's anti spam legislation - federal Privacy principles -Accountability -Identifying purposes -Consent -Limiting collection -Limiting use, disclosure, retention -Accuracy -Safeguards of data protection -Openness -Individual access -Challenging compliance Seller's confidential info -Reason of property sale -Motivation regarding sale -Price seller will accept for sale -Offers received by seller Buyer's confidential info -Reason for purchase of property -Motivation to purchase -Price willing to pay for property -Offers submitted Trustee Legally appointed person to hold assets for benefits of one or more persons. Trust agreements set out terms of trustee's powers and duties. Executors Person who receives title of property when owner of the property is deceased. Development permits -Used for new subdivisions. -Authorizes location, size and use of building. Building permits -Used for new residential buildings. -Valid for one year in which building must proceed. -ABC establishes technical specifications for new buildings. Occupancy permits -Used for new residential buildings. Builder must secure permit before residence is approved for occupation by purchaser. Subsequent building permits -Used to change existing buildings. -Required for new additions, demo or relocation, Major alterations or renovation, supplemental structure. Concepts of residential construction -Technology -Sustainability -Accessibility -Adaptability Technology -the process of implementing single application to operate multiple functions of a property Sustainability -Use and recycling of materials used in construction Accessibility -Individuals ability to access a building, move within and independence without barriers. IE Ramps, lifts elevators. Adaptability -How easy it is to change a home to meet a client's need, ie a home to grow old in. Developer warranty programs -1 year warranty on materials/workmanship used to construct residence, begins when buyer takes possession. Extended warranty programs -In conjunction with builder's warranty, provides 10-year protection against structural defects. Manufactured construction -3 sections almost complete (up to 95%) -Minimal time required to join and complete sections. Modular construction -Three-dimensional, combined to create cohesive building. -85% complete, few weeks to fully develop. Panelized construction -Prefabricated wall, floor or roof panel. -Partial wall panel is framing sheathing. -Completed wall panel include windows and or siding. Building substructure Below grade construction of foundation. Building superstructure Above grade construction of building. -Envelope, service systems, interior building features. Building envelope -Everything that encloses structure and protects from elements. -Roof, exterior walls, windows, exterior doors and interior walls. Interior building features -Interior finishes that complete interior. -Interior walls, features, finishes, fixtures, lighting, floor, ceiling, kitchen/bathroom cabinets. Building service systems Essential services, connected to applicable municipal services -Heat, electricity, water Building lot Lot grading, landscaping and other exterior components. -Landscaping, walkways, driveway, fences. Poured concrete Illustrated with dashed lines or not differentiated from common. -Sold with unit, described in purchase contract. Assigned parking stall Not illustrated. -Sold with unit, described in purchase contract. Rented parking stall Not illustrated. -Not sold with unit, must me negotiated with corporation again. Water efficiency: 3 principles -Reduce: awareness and active ways to use less -Retrofit: Replacing fixtures with more efficient less use. -Repair: Immediate repair of fixtures to reduce water usage. Xeriscaping Form of landscaping that emphasizes planting low-water demand vegetation. - "Dry scaping" minimizing usage of water, fertilizer and other maintenance. Asbestos Silicate minerals that naturally form in host rocks. -Health risk occur when they become air-born and are inhaled. Greenwashing Making environmental claim about a product, practice or service that is beyond the benefits they actually produce. Property inspection report aspects: -Current condition of inspected items -Inspected items that are deemed unsafe or require repair or replacement. -Estimation of approximate replacements/repairs are needed. -Preventative measures to remedy current issues/extend life of inspected items. *should never include estimates or quotes for repairs, replacements or improvements. Property inspection inclusions -Roof -walls, floors -Insulation -Windows/doors -Foundation -Exterior -Heating/ventilation/AC -Plumbing/electrical -Interior -Asbestos/mould Property inspection exclusions -Alarm/smoke systems -Wood burning appliances -Sprinkler/pool/spas -Underground items (IE storage) -Decorative items -Telephone/ other cables -Outbuildings (things not attached to main building). Environmental site assessments (ESA) Determines if property is contaminated, level of contamination and how it is to be remediated. ESA Phase 1 Determine through inquiry if contamination exists on property. ESA Phase 2 Testing to confirm contamination, if contaminated, further testing to identify level of contamination. ESA Phase 3 Any further testing to deal with any outstanding issues, determination of remediation options, and development of remediation plan. -Carrying out remediation plan is not a part of ESA P3. RMS Principles -RE agents must use it. -Identify measurement system, use consistently. -For single detached, measure exterior wall at foundation. -Semi-attached, measure interior perimeter walls (paint to paint) at floor level. Additional area assumed with exterior measurements. -Include floor levels entirely above grade, exclude floor levels below floor grade. Below grade may be measured but must not be included. -Include all additions above grade areas within structure, must be weatherproof and suitable for year- round use. RMS Principles continued. -Minimum floor-to-ceiling height of 2.13 meters (7ft). -When ceiling sloped, area with floor-to-ceiling of at least 1.52 meters (5ft) may be included as long as there is 2.13 meters(7ft) in the same room. -Include extensions from main structure with minimum floor-to-ceiling of 1.52 meters(5ft), cantilevers, bay/bow/dormer windows. -Exclude open areas that have no floor, vaulted areas. -Additional areas can be included as long as they are: Permanent, connected to main electrical, and has main heating or self that can maintain 22 degrees year round. -Box window can be included if it is 1.52 meters(5ft). RMS: Detached properties. -Take exterior measurements at foundation. -Extrapolate exterior measurements from interior when foundation is inaccessible. -Take interior measurements at floor level. Permitted additional property measurements: -Below grade areas. -Area of structures not connected to property. -Area of structures connected but do not meet year-round requirements. -Attached properties: assumed exterior size. Condominium units: RMS -Registered size not to be used as RMS. -Use standard RMS measurement practices. RMS & client. -Retain measurements, calculations, notes, and date to be reported to brokerage. -Retain measurement report if a qualified professional does RMS, submit to brokerage. -Check measurements are up to standards and accurate/error free. Patent defects -Obvious flaw discovered upon reasonable inspection. Minor: Broken window pane, damage to entry walkway, cracks in cement etc. Material: Roof re-shingling, large windows broken seals. -Caveat emptor applies "Buyer beware" buyer is responsible to see suitability to their needs. Latent defects -Physical deficiencies that do not make property dangerous or unfit for habitation. Something not known by seller/buyer at time of sale, thus not disclosed. -Caveat emptor applies "Buyer beware". IE: Hold in drywall hidden by wall hanging, dent in hardwood hidden by carpet. Damage to inner closet. Material latent defects Not visible upon ordinary inspection, has a potential to have adverse impact on value of property and or be a risk to people. IE: Concealed structure damage, environmental contamination not remedied, renovations without building permits required, corroded post-tension cables, grow operations not remediated. Negligent misrepresentation Change in use within same land use classification. Development of a residential property or site to higher of occupancy that currently exists. Assemblage Purchase of contiguous lots by same buyer(s), with intent to create single larger site with enhanced development potential. -Involves efforts to change applicable land use bylaws if it limits or restricts property owner's intended (re)development of the land. Densification Increased concentration of residents or jobs over particular land area. -Involves increase to maximum allowable number of occupants in particular parcel of land relative to land use classification/district. Reclassification Change in land use for particular parcel of land. -Process property owners seek to change residential land use to non-residential land use. Fee simple estate Highest form of private land ownership, includes most ownership rights. -After rights of crown(government), closest to absolute ownership. -AKA Freehold ownership Leasehold estate Land ownership via contract or lease between landlord and tenant. -Gives right to exclusive use. -Leases that last 3 years+: leasehold title obtainable, registering lease on property title. Life estate Grants life interest to land, exclusive possession of the land(usually for life of the person). -Life tenant controls the land during life time, defaults to assignee when deceased and changes to fee simple. Dower rights Grant certain property rights to untitled spouse (whose name is not on title). -Life interest in property. -Right to prevent disposal of property by titled spouse. -Does not apply to common law relationships. Dower consent Agreement to specific disposition of a property, where untitled spouse provides agreement that is signed and executed by a lawyer. Dower release Untitled spouse waives any dower rights by signing legal release that is executed by lawyer. -Titled spouse is free to do with property as they wish. Joint tenancy: 4 conditions Joint tenants hold equal interest in a property, in the event of survivorship, the interests of the deceased will pass to surviving owner(s). 4 conditions must exist: 1. Time: Interests all received at the same time. 2. Title: Title obtained from same document. 3. Interest: Same type of ownership interests. 4. Possession: Undivided interest. Tenancy in common Two or more property owners, with equal or unequal shares of the property. -No rights of survivorship. Mirror principle When referring to a certificate of title that reflects accurately and completely the current facts about the title. Curtain principle All current registered interests in land appear on certificate of title. Insurance principle Government guarantees accuracy of every title. -Indefeasibility of title: title is not subject to being annulled, voided or undone. Certificate of title: information shown -Land resignation district, LINC, short legal description. -Title number, owners (name & addresses), fee simple. -Instruments/other interests registered against title. -Consideration paid for property. -Municipality for property taxation/land use purposes. -Reference number, ATS reference, total number of registered instruments. Easements Right acquired by one party to use another party's land, allowing for shared or common use, typically for a specific purpose. IE: overland drainage, access roads, maintenance access, parking rights, shared walkways. Utility right-of-way Common easement on most property titles; Provides access for utility installations or service points that cannot be altered, removed or blocked by property owner. Conservation easement Voluntary easement between landowner and government agency; Limits amount and type of development that can occur on a landowner's property, to preserve ecological and/or natural portions of land. Caveats Notice or warning that someone is claiming interest in the land. -notice of claim, does not relate to validity of claim. Priority of registered interests on titles: 1. Property taxes 2. Condominium fees 3. Mortgage(s), in the order of registration. SPIN 2 Search requirements (1 of 3) -Legal description of the land. -Land identification number code (LINC) -Title number for property Real property reports (RPR) -Legal description/municipal address -Dimensions, directions of boundaries, date of title search and survey. -Certificate title number, registered owners. -Location and dimensions of buildings relative to boundaries, improvements, rights-of-ways, encroachments, easements registered on title. -Designation of adjacent properties, certification from land survey company, permit stamp (when applicable), parcel designations of adjoining lands. -Areas of concern from land surveyor's perspective. Types of RPR (2) Current: Current status, as of date of report. Existing: Status of property as of date it was prepared. -updating is cheaper than preparing new one. *Optionally Title insurance can be substituted if accepted by terms of transaction. RPR & Municipal certificate of compliance Proves RPR is conforming to any standards set by municipal regulation. Title insurance Protected the insured against losses as a result of title related/ some non-title related matters. Any defects or issues regarding property must be disclosed to insurer. -Gap coverage, some lenders accept it in lieu of RPR. Supply = Demand -Equilibrium, stable sale prices, prices changes vary, stable and steady. Days on market (DOM) Average number of days a property is on open market and sold. Sale price to list price ratio Average sale price of property percentage of their list price at time of sale. Sales to new listing ratio Newly listed properties: number of sold properties over specified period. Comparative market analysis process: 1. Communicate with prospective client. 2. Conduct research on property. 3. View subject property. 4. Select comparable sales. 5. Make adjustments to comparable properties. 6. Determine value of subject property. Sequence of CMA adjustments -Time of sale. -Location of sold property. -Physical characteristics comparable. Adjustments to CMA Make adjustments to comparable property. -For features missing from inferior properties (+)add -For features subject properties missing (-) value. MRF calculation (used for single unit rental) =Value of property/monthly income GIM calculation (used for smaller revenue properties, limited units) =Value/Annual gross income Cash accounting Records cash when it is received and expenses when paid. Accrual accounting Recognizes revenues and expenses when the transaction occurs. Presentation order for CMA 1. Sold properties. 2. Active properties. 3. Brokerage services. Principle of substitution Pay no more for a property than the cost of acquiring a similar and equally desirable property in the market. Principle of Highest and Best Use -How much of a net return you can get by building on the property? -If the use is temporary, it would then be considered the Interim use Amortization The reduction of a loan balance through payments made over a period of time. Amortization period The length of time it takes to repay a loan in full based on constant blended payments. Mortgage Pledging of real property to a lender as security for a debt. Character (mortgage) -Educational background. -Professional experience. -Length of employment at current job. -Current residence. Capital (mortgage) Amount of funds personally invested in a property. -Borrower that invests their own capital in a property represents less risk. Capacity (mortgage) Borrower's ability to repay all current debt obligation plus new mortgage. -Calculated using Gross debt service ratio (GDS), total debt service ratio (TDS). Credit score analysis (mortgage) breakdown: -35% payment history. -30% level of debt. -15% length of credit history. -10% frequency of new credit card inquiries. -10% type of credit owned. Assumable mortgage Buyer takes on existing mortgage as part of purchase contract. -May require a credit check etc. Vendor Take-Back Mortgage Property title is transferred to the buyer, who makes mortgage payments directly to the seller. -Seller registers interest on title. -AKA seller take-back mortgage. -Seller is Mortgagee and buyer is mortgagor Agreement for Sale Seller allows buyer to finance the property, helps facilitate the sale when buyer cannot get financing for down payment. -Buyer files caveat on title for interest. -Seller remains as title owner until payment has been made in full. Wraparound mortgage A mortgage that encompasses any existing mortgages and is subordinate to them. -Borrower receives difference between original and new mortgage. -AKA umbrella mortgage. Blanket mortgage A mortgage which covers more than one piece of real estate. -Often used by a developer in the financing of undeveloped lots. -Contains a partial release clause that stipulates payment as each lot sells. Participating mortgage Two or more lenders involved that have fractional equitable interests in the real property. -Lenders capitalize on any increase of prices in the property without any responsibilities. Real estate Raw land plus any improvements that are fixed/permanent. Real property Land, permanent improvements and property rights that go with ownership of the land. Reverse mortgage A loan based on the equity in a home, that provides elderly homeowners with tax-free income and is paid back with interest when the home is sold or the homeowner dies. Builder's loan Funding advance in intervals to a developer or builder to work on construction progresses. -Funds are made available in intervals. Interim financing