Alberta Real Estate Fundamentals Exam with complete solutions

Real Estate - Answer- The land and fixed improvements to the land Classes of License - Answer- 1. Associate 2. Associate Broker 3. Broker 4 Areas of Practice - Answer- 1. Residential 2. Commercial 3. Rural 4. Property Management Mobile homes fall under the same category as recreational properties - Answer- False Industrial Properties - Answer- Include warehouses and custom-built manufacturing plants Residential Income property - Answer- Include low-rise and high-rise apartments, duplexes, fourplexes, and townhouses Characteristic: Scarce - Answer- Identifies real estate as a limited resource Characteristic: Durable - Answer- Identifies real estate as indestructible Characteristic: Fixed - Answer- Identifies real estate as immobile Characteristic: Unique - Answer- Identifies parcels of land as being different from one another Characteristic: Private - Answer- Identifies how real estate transactions are conducted between a buyer and seller Characteristic: Supply/Demand - Answer- Identifies the slow response of these 2 market forces affecting real estate Characteristic: Standardized - Answer- Identifies the inability to marker properties for all areas of real estate in a universal approach Characteristic: Local - Answer- Identifies real estate transactions as occurring in a defined area High volumes of mortgage lending reflect the lack of confidence in the safety and desirability of real estate - Answer- False Booming local economy - Answer- Sellers' market Contracting local economy - Answer- Buyers' market - Answer- Real estate industry is self-regulated, Real Estate Act established, RECA approves pre and re-licensing programs, and RECA establishes disciplinary processes - Answer- Real Estate Agents Licensing Act replaces Real Estate Commission Act, and Alberta Real Estate Association is created - Answer- RECA implements measures to prevent fraud, assumes jurisdiction over real estate appraisal, and develops pre- and re-licensing online courses - Answer- Real Estate Commission Act, first legislation governing real estate is passed - Answer- Alberta Consumer and Corporate Affairs prepares 4 objective for the industry starting at transitioning government regulation to self-regulation To protect consumers and to provide services that enhance and improve the industry and the business of industry professionals - Answer- RECA's mandate The public interest is best served through stakeholder collaboration and where there is a supportive environment for professionals to flourish while providing the best possible experience for the public - Answer- RECA's vision Real Estate Assurance Fund - Answer- Compensated consumers who suffer financial loss as a result of fraud, breach of trust or a failure to disburse or account for money held in trust Land surveyors - Answer- Responsible for preparing Real Property Reports Real estate Insurance Exchange - Answer- Entity that provides professional liability insurance for real estate and mortgage brokerage professionals Chattels - Answer- Personal property Consumer Price Index (CPI) - Answer- Measures the change in the cost of a fixed basket of goods and services purchased by families over a period of time What is not considered when determining if a substantial connection to a jurisdiction exists? a) the province in which the person holds authorization b) geographic location c) method and place from which documents are sent d) potential that a claim may result due to financial loss suffered - Answer- d) potential that a claim may result due to financial loss suffered What would initiate a Professional Conduct Review? a) Determining whether a complaint is in RECA's jurisdiction b) Receiving a verbal complaint c) Determining is professional conduct review is warranted by ED d) Receiving a written complaint - Answer- d) Receiving a written complaint What happens when a complaint is filed but not under RECA jurisdiction? - Answer- It is referred to another forum. Conduct deserving of sanction - Answer- Conduct that falls below industry standard, breaches the Act, and not compatible with the interests of the public Technical breach of legislation receives... - Answer- Advisory note When the license of a real estate brokerage is suspended, what actions must real estate professionals who are registered with the brokerage take? - Answer- They must cease to trade in real estate What can RECA amend from time to time? - Answer- Regulations According to the Rules, what do written service agreements need to include? - Answer- Written service agreements must clearly indicate the names of all parties to the agreement