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RECA Residential Unit 1 QUESTIONS and answers
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RECA Residential Unit 1 QUESTIONS and answers
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RECA Residential Unit 1"arm's length transaction" meaning - questions and answers-In real estate, an arm's length
transaction is when the buyer and seller each act in their own self-interest to try to get the best
deal they can.
"Assignees/Assignors/Assignment" meaning - questions and answers-In relation to real estate,
an assignee is a person to whom an interest or right in real property is legally transferred. An
assignor is the person who transfers a right or interest to the Assignee. An assignment is a legal
sales transaction whereby the original buyer (ie the Assignor) of a property sells and thereby
transfers his or her interest and obligations under the original contract to a new buyer (ie the
Assignee) prior to the transaction being completed.
"Corporate Seal" Meaning - questions and answers-A corporate seal is the official mark or
signature of a corporation and consists of an embossed impression on paper, evidencing the
formality of the corporation's execution of a document.
"eminent domain" meaning - questions and answers-the right of the government, or its
agencies, to take private property for public use
"Enduring Power of Attorney" Meaning - questions and answers-appoints an individual to make
financial and legal decisions. Takes effect upon any of the following: 1. Immediately upon being
dated, signed, and witnessed and continues if the donor becomes incapable of managing his or
her financial and legal affairs; or 2. When the donor becomes mentally incapacitated; or 3.
When some other event specified by the donor occurs sometimes referred to as a Springing
POA. It must state whether will take effect immediately and continue upon the mental incapacity
of the donor, or only 'spring' into effect upon future mental incapacity or some other event stated
by the donor. If it does not include such a statement, it is not an Enduring POA and terminates if
the donor becomes mentally incapacitated.
"Expert Testimony" Meaning - questions and answers-Other real estate professionals, or
experts, may provide information as to the expectations of a reasonable and prudent real estate
professional and how they would have conducted themselves in similar circumstances.
"Forclosure" meaning - questions and answers-Foreclosure is a legal action supervised by the
court that a lender pursues following a borrowers default on a mortgage
"General Power of Attorney" Meaning - questions and answers-Has no limits on the powers of
the attorney to make decisions about the donor's financial and legal affairs. Able to make all
decisions about the donor's personal affairs. 2 exceptions - consenting to health care, deciding
where the donor should reside. Types of activities identified ina General POA may include;
Paying bills, conducting bank transactions, making investment decisions, preparing and filing
income tax returns, handling matters related to government benefits
, "gross income multiplier" meaning - questions and answers-A gross income multiplier (GIM) is a
rough measure of the value of an investment property. It is calculated by dividing the property's
sale price by its gross annual rental income.
"Immediate Power of Attorney" Meaning - questions and answers-Appoints an attorney to make
finacial and legal decisions on behalf of the donor and takes effect as soon as the POA is dates,
signed and witnessed. This type of POA terminates upon the donor's loss of mental capacity or
death
"monthly rental factor" meaning - questions and answers-A method of income analysis for small
income producing properties with a single rental unit. The Monthly Rental Factor relates the
gross monthly income of comparable properties to the value of the subject property.
"Objectively" meaning - questions and answers-in a way that is not influenced by personal
feelings or opinions.
"Phishing" meaning - questions and answers-Phishing involves impersonating a trusted person,
organization, or website to steal an individual's personal information, generally for the purpose
of identity theft.
"Special Power of Attorney" Meaning - questions and answers-Also referred to as a limited
Power of Attorney, grants specific or limited powers to the attorney to make certain decisions or
act on the donor's behalf. A POA that specifies land, has the effect of suspending the owner's
(ie donor) right to deal with the land when a POA is registered on title. An example (related to
land) is when an owner is out of the country and grants the attorney authorization to sign
documents related to the sale or mortgage. In another example a special POA may grant for
overseeing specific maters such as the sale of a particular property (as apposed to all property)
"subjectively" meaning - questions and answers-In a way that is based on personal feelings,
tastes, or opinions.
"Tenant in common" meaning - questions and answers-Tenancy in common is a form of joint
possession of real property. Each tenant in common possess a share of the property. ... Unlike
joint tenants, tenants in common may each own different percentage shares of the property. In
other words, you can have 49 percent interest in the property or even 1 percent interest.
"To Account" meaning - questions and answers-Real estate professionals must account for all
money and/or property belonging to the client. This duty compels a real estate professional to
safeguard all money, documents, property, and information entrusted to them that relate to the
client's transaction.
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