RECA Exam| More than 200 Real Questions and Verified Answers| Grade A| 2023/ 2024 Update
QUESTION
The Oleksiaks paid $410,000 ten years ago for a
... [Show More] house in a small town. There is now an economic downturn forcing the closure of a local industrial plant. As with many residents of the town, the Oleksiaks were employed by the plant and will now have to relocate to the city. When the Oleksiaks go to sell their home, the property is now valued at $350,000. Which of the following Principles of Value best describes this scenario?
A) Principle of Regression
B) Principle of Surplus Productivity
C) Principle of External Factors
D) Principle of Increasing and Decreasing Return
Answer:
C
QUESTION
Which Principle of Value states that homes built in a similar style to others in the area may increase property values?
A) Principle of Conformity
B) Principle of Balance
C) Principle of Substitution
D) Principle of Competition
Answer:
A
QUESTION
What is meant by the term 'straw buyer'?
A) A buyer who participates in mortgage fraud for housing
B) Anyone who lets their identity be used to buy property
C) A person who knowingly participates in mortgage fraud
D) All statements are correct
Answer:
B
QUESTION
Which of the following statements best describes 'fraud for housing'?
A) A buyer who completes a purchase contract for a property using an inflated amount
B) A buyer who purchases a property with the intention of using it for criminal activities
C) A buyer who uses illegal funds as part of the down payment for the purchase of a property
D) A buyer who attempts to qualify for mortgage financing by falsifying or misrepresenting information required by the lender
Answer:
D
QUESTION
Zack wants to buy a house, but does not have enough of his own funds to cover the gap between the required down payment and the amount for which he qualifies. He notices an ad offering houses for sale with 'low down payments' and calls the number. Herbert, a mortgage investor, answers the call and tells Zack that he can advance him the required funds and register a mortgage once the title transfers. He tells Zack this is a private arrangement and not to mention it to any mortgage lenders. What is this scheme called?
A) False deposit
B) Secret second
C) Equity access
D) Debt-consolidation
Answer:
B
QUESTION
Susan has been unable to work due to a recent illness and has missed making her mortgage payments for the last two months. Steve contacts Susan and claims to be a mortgage specialist working on behalf of the lending institution who provided Susan the mortgage loan. Steve advises Susan that his company can make the mortgage payments until she can get back to work but requires an upfront fee of $500 to transfer the title of the property. As Susan does not want to default on her mortgage, she agrees to forward Steve the funds. Which mortgage fraud scheme has Steve perpetrated?
A) Equity access
B) Private financing
C) Vendor cash-back
D) Debt consolidation or foreclosure
Answer:
D
QUESTION
Which of the following statements is a characteristic of a mortgage?
A) It is the lender's security for repayment of a borrower's debt
B) It is a transfer of an interest in land from the borrower to the lender
C) It is the pledging of real property by a borrower to a lender as security for a debt
D) All statements are correct
Answer:
D
QUESTION
Which of the following statements is correct regarding the remedy of quantum meruit?
A) The injured party cannot claim damages for any loss incurred
B) The injured party is entitled to the reasonable value of the services performed
C) The injured party is released from his or her contractual obligations
D) The injured party is compelled by court order to fulfill his or her contractual obligations
Answer:
B
QUESTION
Which of the following does NOT apply to consideration?
A) Consideration must be lawful
B) Past consideration is no consideration
C) Consideration always involves money
D) Consideration is anything of value promised to another
Answer:
C
Consideration is something of value, but not necessarily money
QUESTION
Which of the following applies to the payment of referral fees?
A) Real estate brokerages may be paid referral fees by mortgage brokerages
B) Real estate professionals may pay referral fees to mortgage brokerage professionals
C) Real estate professionals may pay referral fees to unlicensed individuals if the broker approves
D) Real estate professionals may be paid referral fees by mortgage brokerages
Answer:
A
QUESTION
Which of the following statements identifies the circumstances under which an individual is NOT eligible for licensing?
A) The individual is not at least 18 years of age
B) The individual fails to obtain the appropriate insurance coverage
C) The individual fails to submit the required fees, levies or premiums
D) All the statements are correct
Answer:
D
QUESTION
Michael, a real estate professional with Prime Plus Real Estate Brokerage Ltd., has an assistant, Marie, who used to be an industry professional. As Michael is very busy, Marie prepares promotional information for upcoming open houses that Michael will host. According to the Rules related to support personnel and assistants, choose the best answer regarding the actions Marie is performing.
A) Marie can prepare the promotional information if the broker has given his/her permission
B) Marie can prepare the promotional information if she has written permission from Michael
C) Marie can prepare the promotional [Show Less]