EXAM PREP Flashcards
According to the Rules, which of the following statements is an industry professional prohibition?
Choose only ONE best answer.
A) Making representations that mislead or deceive buyers or sellers
B) Disclosing the compensation he or she will receive for the services provided
C) Entering into a written service agreement with a client on behalf of the brokerage
D) All the statements are correct
A) Making representations that mislead or deceive buyers or sellers
Each co-owner owns an undivided interest in the whole of the fee simple estate, and together, all co-owners own the whole of the property. The essential feature of this type of ownership is the right of survivorship. When one joint tenant dies, the entire estate remains with the surviving joint tenants. The result is that the surviving joint tenants acquire the whole of the estate and this continues until there is a sole survivor. Therefore, joint tenants cannot leave their interest to anyone in their wills.
The default ownership for most couples is ___________?
joint tenancy
Where 2 or more persons hold interests in a property, and each has a separate share.
While none of the owners may claim a specific area of the property, tenants in common may have unequal shares and different ownership interests.
For instance, Tenant A and Tenant B may each own 25% of the home, while Tenant C owns 50%.
Tenants in Common
TRUE OR FLASE
Fee simple is the most common form of property ownership and generally includes the following bundle of rights
- The right to posses and use the land
- The right to lease the land
- The right to sell or give the land to another
- The right to retain the land
TRUE
What do the following relate to?
- Owner is the absolute owner of the land and any fixed improvements
- Property owned in perpetuity until sold or owner dies
- Owner can will property to anyone
- Owner has complete bundle of rights
A) Fee Simple
B) Tenants in Common
C) Life Estate
D) Joint Tenancy
A) Fee Simple
Who is the ultimate owner of the land in a Fee Simple Estate
A) The Owner
B) The Crown
C) The person the estate is willed to
D) The next of kin
B) The Crown / Provincial government
when the owner passes away with no will the property goes to the crown
With respect to brokerage record keeping, which of the following statements is correct?
Brokerage records must be kept in Alberta
Brokerage records may be maintained in electronic form
Brokerage records must be kept by the brokerage for 3 years
Brokerage records must be accessible to RECA for inspection
Choose only ONE best answer.
A) Statements I, II and III apply
B) Statements I, II and IV apply
C) Statements I, III and IV apply
D) All the statements are correct
D) All the statements are correct
A real estate professional’s authorization to trade in real estate expired on September 30. However, the real estate professional continued to show properties on behalf of a property management company for which she received compensation. Given her actions breached a section of the Rules and were deemed to be potentially serious, which of the following disciplinary outcomes would real estate professional receive?
Choose only ONE best answer.
A) Consent Agreement
B) Letter of Reprimand
C) Temporary Suspension
D) Administrative Penalty
D) Administrative Penalty
According to the Rules, Which of the following statements describes an element that must be incorporated into a written service agreement?
A) The services to be provided by the brokerage
B) The responsibilities of each party to the agreement
C) The names of the parties to the agreement
D) All statements are correct
D) All statements are correct
Prime Real Estate Brokerage Advertises on its website that “ We will pay the real estate appraisal fee for sellers who list their property within the next 30 days!”
Which statement best describes this advertisement
A) Incentive
B) Inducement
A) Incentive
Rob is a real estate professional with Prime Real Estate Brokerage and is approached by Sylvia, who has a work solleane that is looking to purchase a new house. Sylvia asks Rob to pay her a finder fee of making that connection id he is successful in arranging a purchase. How can Rob pay Sylvia a referral?
A) An Unlicensed person may not be paid a referral fee
B) Rob can give her a gift card or get instead of cash
C) Sylvia can be paid a referral is the amount is not over 100$
D) Rob may request that the brokerage pay Sylvia a referral fee
A) An Unlicensed person may not be paid a referral fee
Which of the following is an example of an appropriate incentive
A) A real estate professional advertises that all new listings with him will receive a promotional gift
B) A brokerage advertises that all new listings contracts will be entered into a draw for a patio BBQ
C) A real estate professional pays the property appraisal fees for a client upon receipt of the invoice for payment
D) A real estate professional offers to pay a clients legal fees
B) A brokerage advertises that all new listings contracts will be entered into a draw for a patio BBQ
Which of the following statements is an example of an appropriate incentive?
A. a brokerage offers the use of its moving van to attract new business
B. a brokerage agrees to pay the seller’s legal fees to make the sale
C. a real estate professional offers free travel miles to attract new business
D. all answers are correct
A. a brokerage offers the use of its moving van to attract new business
Which of the following is NOT a benefit of RECA’s Trust Assurance and Practice Review Program?
A) It develops effective record keeping and administrative procedures
B) It provides education and advice in relation to brokerage trust accounting
C) It documents the human resources policies and procedures for a brokerage
D) It identifies and resolves potential problems regarding brokerage trust accounting requirements
Which of the following statements is NOT correct regarding the term demographics?
A) It measures the total output of an economy
B) It can affect the supply of, and demand for, real estate
C) It is the study of the characteristics of human populations
D) It includes statistical data such as age, gender and ethnicity
A) It measures the total output of an economy
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) The Rules
When the license of a real estate brokerage is suspended, what actions must real estate professionals who are registered with the brokerage take?
A) They must cease to trade in real estate
B) They must cancel their authorization with RECA
C) They must apply for withdrawal from the profession
D) They must become registered with another brokerage
A) They must cease to trade in real estate
Which privacy legislation affects how Alberta real estate professionals handle client information?
- Privacy Information Act
- Right to Personal Privacy Act
- Personal Information Protection Act
- Personal Information Protection and Electronic Documents Act
A) Statements I and II
B) Statements I and IV
C) Statements II and III
D) Statements III and IV
D) Statements III and IV
Personal Information Protection Act
Personal Information Protection and Electronic Documents Act
The Rules require an individual trading in real estate to hold an authorization with RECA unless they are exempt. Which of the following is NOT exempt?
A) A person acting directly by a statute or court order to dispose of real estate
B) A bank, treasury branch, credit union, loan corporation, trust corporation or insurance company administering real estate
C) A full-time assistant that holds open houses for a real estate professional
D) A member in good standing of the Law Society of Alberta when in the practice of law
C) A full-time assistant that holds open houses for a real estate professional
Which of the following statements are correct regarding REIX deductible amounts?
$2,000 for the first claim made in any 3 year period
$3,500 for the first claim made in any 3 year period
$5,000 for a second claim made in any 3 year period
$7,000 for a second claim made in any 3 year period
A) Statements II and IV
B) Statements I and II
C) Statements II and III
D) Statements I and IV
A) Statements II and IV
$3,500 for the first claim made in any 3 year period
$7,000 for a second claim made in any 3 year period
Paul Chang is a real estate associate with ABC Realty. He meets Joe and Better Hill who are looking to downsize from their 4 bedroom house to a condo as they are getting older and not able to maintain their current property. Paul lists the property below market value and then brings in an offer from his brother to purchase the property. Once the Hills learn of this they initiate a civil lawsuit against Paul claiming FRAUD on his part.
How do the Hills get compensated for their loss under this situation?
A) REIX
B) Errors and Omissions insurance
C) Homeowners insurance
D) Real Estate Assurance Fund
D) Real Estate Assurance Fund
Pauline Yan is helping her clients buy residential property. The back door of the property is left unlocked after the showing and is ROBBED. The seller initiates a civil lawsuit against Pauline to compensate for their loss.
What type of insurance will cover Pauline under this situation?
A) REIX
B) Errors and Omissions insurance
C) Homeowners insurance
D) Comprehensive & General liability insurance
D) Comprehensive & General liability insurance
REIX wont cover anything to do with burgherly or theft.
Susan is helping her client Mary buy a residential property. Mary meets Susan at her home office to write an offer on the property she likes. While leaving the home office, Mary slips on the ice in the driveway and breaks her write trying to break the fall. As a result she in unable to work for 2 months. Mary starts a civil lawsuit against Susan for lost wages.
What type of insurance would cover Susan in this case.
A) REIX
B) Errors and Omissions insurance
C) Homeowners insurance
D) Comprehensive & General liability insurance
D) Comprehensive & General liability insurance
What does REIX Cover?
A) Errors Omissions and Commissions
B) Errors Commissions and Fraud
C) Errors, Omissions and Negligent Acts
D) Errors, Omissions and breachof Trust
C) Errors, Omissions and Negligent Acts
How many associates, associate brokers can be registered with a brokerage?
A) 1 Associate and many Associate brokers
B) Many Associates and 1 Associate broker with many brokers
C) Many associates and associate brokers
D) Many associates, associate brokers and brokers
C) Many associates and associate brokers (but only 1 broker)
In order to become a Broker, how many years of experience must you have as a licensed real estate professional in AB?
A) have 2 years of experience in AB as a licensed real estate professional in the previous 5 years
A) have 3 years of experience in AB as a licensed real estate professional in the previous 5 years
A) have 3 years of experience in AB as a licensed real estate professional in the previous 7 years
A) have 2 years of experience in AB as a licensed real estate professional in the previous 7 years
A) have 2 years of experience in AB as a licensed real estate professional in the previous 5 years
Paul Ellison wants to become a broker. What requirements must Paul meet in order to reach his career goals?
Choose all that apply
A) Successful complete the Real Estate Associate Program
B) Successfully complete the Real Estate Property Management Program
C) Successfully complete the Real Estate Brokers Program
D) Have 2 years of experience in AB as a licensed real estate professional in the previous 5 years
E) Have 3 years of experience in AB as a licensed real estate professional in the previous 7 years
A) Successful complete the Real Estate Associate Program
C) Successfully complete the Real Estate Brokers Program
D) Have 2 years of experience in AB as a licensed real estate professional in the previous 5 years
Which of the following statements best describes the term ‘conduct deserving of sanction’?
A) Conduct that breaches the Act, Rules, Regulations or Bylaws
B) Conduct that falls below any industry standard
C) Conduct that undermines public confidence in the industry
D) All the statements are correct
D) All the statements are correct
Mary, a real estate professional registered with ABC Real Estate Brokerage, has agreed to purchase her neighbour’s ranch. The seller of the property is not represented by a real estate professional. What level of disclosure does Mary need to provide?
A) Disclosure level 1
B) Disclosure level 2
C) Disclosure level 3
D) No disclosure level
B) Disclosure level 2
A real estate professional’s authorization to trade in real estate expired on September 30. However, the real estate professional continued to show properties on behalf of a property management company for which she received compensation. Given her actions breached a section of the Rules and were deemed to be potentially serious, which of the following disciplinary outcomes would the real estate professional receive?
A) Consent Agreement
B) Letter of Reprimand
C) Temporary Suspension
D) Administrative Penalty
D) Administrative Penalty
Pursuant to the Rules, which of the following is a result of an industry professional’s failure to immediately notify the Executive Director of changes to information provided in support of a licence application?
A) Executive Director may refer the matter for a Professional Conduct Review
B) Executive Director may suspend the industry professional’s licence
C) Executive Director may cancel the industry professional’s licence
D) All the statements are correct
D) All the statements are correct
Which of the following statements is a reason to terminate or discharge a contract?
A) All parties have performed their obligations under the contract
B) All parties to the contract mutually agree to terminate the contract
C) The object relating to the contract (e.g. property) has been destroyed by fire
D) All of these statements are correct
D) All of these statements are correct
The Statute of Frauds provides that certain contracts be in writing. What is the purpose of this requirement?
A) Written contracts are easier to register against the title
B) Written contracts prevent default on mortgages
C) Written contracts facilitate the negotiation process
D) Written contracts are easier to prove and enforce
D) Written contracts are easier to prove and enforce
Which of the following are the types of conditions used in Alberta for real estate purchase contracts?
A) Conditions subsequent
B) Conditions precedent
C) Conditions specific
D) Conditions ascendant
B) Conditions precedent
What is a WRIT OF ENFORCEMENT
A) A title registration notifying that litigation is in progress
B) A title registration regarding a JUDGMENT against the owner
C) A title registration by a contract for unpaid work
D) A title registration for the security of an unpaid mortgage
B) A title registration regarding a JUDGMENT against the owner
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. to amend the Act as determined by Council
Dominic, a real estate associate with XYZ Real Estate Brokers Inc., plans to return to school in September to complete his university degree. As such, he will not be renewing his registration with the brokerage. How long does he have to become registered again with a brokerage before his licence expires?
A. By September 30 following his registration termination
B. Within 24 months after terminating of his registration
C. Within 36 months from the last date of his registration
D. By December 31 following his registration termination
C. Within 36 months from the last date of his registration
Which of the following types of authority involve describing (orally or in writing) the actions that may be taken by an agent on behalf of a principal?
A) Express authority
B) Implied authority
C) Customary authority
D) Functional authority
A) Express authority
*** Will be on exam
The requirement to provide written disclosure to a consumer is NOT promoted by which of the following actions?
I. A consumer attending a real estate professionals open house
II. A consumer revealing their price range, preferred location and desired property styles
III. A consumer asking general questions to which factual answers can be provided.
IV. A consuming revealing where they would like to purchase a property and why.
A) Statements I, II, and III
B) Statements I, II and IV
C) Statements II, III and IV
D) All of the above.
A) Statements I, II, and III
Disclosures are required when confidential information is given
the WHY in statement IV. = confidential information. Motive for purchasing a house would need a disclosure for.
https://www.youtube.com/watch?v=w5zggZiE-jE
*** Will be on exam
What steps must real estate professionals follow when working with executors?
A. Make reasonable efforts to ensure the person is deceased
2. Check the terms of the Will and act in best interested of the deceased
3. Check the Certificate of title for Beneficiaries
4. Allow enough time for approvals
A) 1,2,3
B) 1,2,4
C) 2,3,4
D) All of the above
C) 1,3,4
executor is someone named in the will and they are responsible for making sure the estate is distributed as per the instruction of the will that the dead person left behind. (administer the will)
Check for death certificate
Check terms of will
Allow enough time for approvals
check identity of executor
Certificate of title doesn’t have beneficiaries on it.
*** Will be on exam
Which of the following are RED FLAGS in a transaction?
- The buyer is pre-approved for a mortgage
- The buyer dose not provide photo identification
- The list price is unusually high for the neighborhood
- The seller and buyer signed the purchase contract at the same time
A) Statements 1,2,&3
B) Statements 2,3 & 4
C) Statements 1,3 & 4
D) Statements 1,2 & 4
B) Statements 2, 3 & 4 are all the red flags.
It is normal to get pre-approved for a mortgage (I did with the bank!)
** Will be on exam
Which of the following techniques helps money launders distance themselves from their money laundering transactions
- Use of cash for transactions
- Use of a nominee for transactions
- Use of straw buyers for transactions
- Use of fictitious or stolen identity for transactions
A) Statements 1,2,3
B) Statements 1,3,4
C) Statements 1,2,4
D) All of the above
D) all of the above
Nominee = is someone else who is purchasing the house for them. (also a red flag)
Strawbuyers = people who sell their credit and financial information in order to help someone get a financial transaction done eg. mortgage.
What does FINTRAC stand for?
Financial Transactions and Reports Analysis Centre of Canada and exists as Canada’s federal financial intelligence unit. FINTRACs mandate is to “facilitate the detection, prevention, and deterrence of money laundering and the financing of terrorist activities”.
** Will be on exam
James Bell is a new real estate professional with New Age Reality. He is very excited to be working on his first deal with his buyer clients, Brand & Amanda. He helps them find a house they love. Prior to the completion, the lawyer discovers that the address and legal description is of the neighboring property. What would this contract be considered?
A) A void contract
B) A valid contract
C) A voidable contract
D) An illegal contract
A) A void contract
James has entered in the wrong information. contract is invalid as he does not have the legal ability to sell the neighbors property.
The contract would be void and a new one would be written up.
A VALID CONTRACT = where all essential elements of contract are present
VOIDABLE CONTRACT = can be challenged in the court - eg. explain contract to clients and there were language issues
ILLEGAL CONTRACT = for purposes of something illegal
** Will be on exam
Which of the following statements best describes the concept of confidential information?
- It is information that the brokerage has deemed to be confidential
- It is information individuals identify to others as being confidential
- It may include both personal and business info
- It is not readily available information that may have some fort of value.
A) Statements 1 & 2
B) Statements 2 & 3
C) Statements 2 & 4
D) Statements 3 & 4
D) Statements 3 & 4
Anything that will identify an individual is considered confidential information.
- the motivation for someone to buy a property (the WHY)
- the price they are willing to accept for the property
- or how much a buyer is willing to pay for a property
The brokerage doesn’t decide what confidential info is
Individuals don’t identify what information is confidential it is predetermined
- It may include both personal and business info - CONTAINS CONFIDENTIAL INFO can identify a person
- It is not readily available information that may have some fort of value.
** Will be on exam
When owners lease or rent their units, which of the following may be required of the owners by the condo corporation?
- Names of the tenants and the amount of rent they will pay
- Address of service and a deposit equal to one months rent
- Start and end dates for the rental agreement
- Permission from the condominium corporation to rent / lease the unit.
A) Statements 1,2,3
B) Statements 2,3,4
C) Statements 1,3,4
D) All of the above
A) Statements 1,2,3
- Permission from the condominium corporation to rent / lease the unit.
the unit owner would not need their permission but they would still have to check with the bylaws in regarding then tenants ratio (which is the # of units that can be rented at any time) If this number is full then the condo owner may not be able to rent their unit.
Don’t need permission just need to check what the bylaws are
Which of the following statements best describes the term “ Conduct deserving of sanction “
A) Conduct that harms the integrity of the profession
B) Conduct that breached the Act, Rules & Regulations
C) Conduct that falls below industry standards
D) all of the above.
Which of the following statements best describes the term “ Conduct deserving of sanction “
A) Conduct that harms the integrity of the profession
B) Conduct that breached the Act, Rules & Regulations
C) Conduct that falls below industry standards
D) all of the above.
D) all of the above.
Which of the following is an example of “CONDUCT DESERVING OF SANCTION”
A) A real estate associate drives a client to show properties after attending a social event where she consumed several glasses of wine
B) A real estate professional gained access to a property with the key found in the lockbox as scheduled after notifying the listing agent
C) A real estate agent shares information and post comments on his social media to create awareness about his favorite charity
D) All of the above
A) A real estate associate drives a client to show properties after attending a social event where she consumed several glasses of wine
Which of the following is an example of an incentive?
A) A brokerage advertises that all new listing will be entered into a draw for a new patio swing set
B) A real estate professional offers to pay for moving boxes for anyone who lists a property for sale with him in the next 30 days
C) Associate Jason Chan offers to pay his seller clients appraisal fees if they accept the buyers offer and sign the deal
D) All of the above.
A) A brokerage advertises that all new listing will be entered into a draw for a new patio swing set
Purpose of an INCENTIVE is to get new business for the brokerage
Incentive can ONLY be offered by the brokerage it can not be offered by a real estate associate / professional
Sam is a new developer who is very excited about his first development project. Which of the following permits does he need to insure that the new subdivision conforms to the areas land use bylaws which include location, size and use of buildings?
A) Building Permit
B) Development Permit
C) Occupancy Permit
D) Subsequent Building Permit
B) Development Permit
Always the first permit required
The term land can be best defined as?
A) The unimproved land, buildings and other fixed improvements
B) Surface resources like soil, gravel and sand
C) Attached and unattached structures on the land
D) Ground and what is above or below it
D) Ground and what is above or below it
certificate of title will tell us whether or not the minerals or oil under the surface are included or not.
What is an example of an inducement?
(choose all that apply)
A) XYZ Realty offers the use of their company moving van to anyone who lists a property for sale with them in the next 30 days
B) Associate Debra smith tells her clients that her brokerage would pay for the legal fees if they accept the buyers offer and sign the deal
C) ABC Home Realty offers a $1000 Best buy card to help with the purchase of new appliances if the buyers accept the sellers offer and close the deal
D) Associate jane Kelly offers a $500 Visa gift card to anyone who buys their next home through her in the next 90 days.
B) Associate Debra smith tells her clients that her brokerage would pay for the legal fees if they accept the buyers offer and sign the deal
C) ABC Home Realty offers a $1000 Best buy card to help with the purchase of new appliances if the buyers accept the sellers offer and close the deal
What is the difference between an inducement and an incentive ?
Inducements are used to get customers to sign a deal - can only be offered by the brokerage not the associates
Incentives are used by the brokerage only to attract new customers to the brokerage
What market is characterized by
1. Stable property prices
2. Properties sell in a reasonable timeframe
3. Supply and demand remains relatively constant
A) Buyers Market
B) Balanced Market
C) Sellers Market
D) All of the above
B) Balanced Market
What type of market is said to occur when the number of properties in a local area is about equal to the number of buyers?
A) Buyers Market
B) Balanced Market
C) Sellers Market
D) All of the above
B) Balanced Market
Jen, a real estate associate with Green Realty, is helping her senior citizen clients, John and Mary Hill, downsize to a condo unit. John and Mary would like a quiet place to retire. Where can Jen find out if there is an age restriction in place for the condominium?
A) The bylaws
B) The Certificate of Title
C) The Condominium Manager
D) All of the above
D) All of the above
Define LAND
Land refers to the ground and that which is beneath and above it.
It includes the surface resources ( soil, sand gravel)
It may or may not include the deep resources underground (coal, gas oil) _ Depending on the ownership rights and any exclusions found on the Certificate of Title.
Define REAL ESTATE
Real estate includes the raw land, PLUS buildings and other fixes improvements to the land.
Fixed improvements = items permanently attached to the land eg. House, garage, shed, fence, pool.
The land + any improvements to the land
Define REAL PROPERTY
Real property is the land, and fixed improvements to the land AND the property rights that go with the ownership of the land.
Incentive or Inducement?
Anything that is advertised or offered by a brokerage to attract business/customers to the brokerage. It can include a promise, good, service, game of chance, contest, or anything else of value. It can only be offered by a brokerage and not by an associate
Incentive
think C-clients = inCentive
D-Deals = inDucement
Incentive or Inducement?
Anything offered by a brokerage to persuade a person to enter into a DEAL or real-estate transaction. To get them to sign a deal.
Can only be offered by a brokerage and not by an associate.
Inducement
Define MONEY LAUNDERING
The process of taking money from illegal sources (like selling drugs) and making it appear as if it is coming from a legut sourse.
define ETHICS
VOLUNTARY set of conduct rules, values and beliefs held by an individual that guide their behavior
Two types.
- Utilitarian Ethics
- Duty based Ethics
Duty Based or Utilitarian Ethics?
Promote conduct that maximizes others welfare while reducing harm or injury
Utilitarian Ethics
Duty Based or Utilitarian Ethics?
Focused on the intention behind an individuals actions as opposed to the consequences of the actions
Duty based Ethics
Define STATUE OF FRAUDS
According to the Statue of Frauds, certain contracts must be in writing and be signed by all parties who will be bound to that contract.
Eg.
Contracts for the sale of an interest in land
Contract for debt or duty
Contracts that can not be carried out within one year
Define SURFACE RIGHTS
Include the rights to the PHYSICAL GROUND, the air & space above the ground and any materials from the TOP layer of the land.
Can include minerals that can be extracted from the top layer of the ground such as sand or gravel.
Surface rights do not typically include mineral rights
What are MINERAL RIGHTS
Rights to the natural resources BELOW the top layer of land - eg. Coil, oil, gas, gold - Most land titles exclude mineral rights
John is working with his client Martin who is a busy professional and dose not have a lot of time for house maintenance. John shows Martin a house, where the landscaping consists mostly of concrete, stone, rock and gravel, which also reduces water usage. What type of landscape does the house have?
A) Zeroscaping
B) Xeriscaping
C) Zen Garden
D) Stonescaping
A) Zeroscaping - NO PLANTS
Xeriscaping = Low maintenance landscaping that used native plants
Susan meets her client Jessica Yan to list her property. She notices that the property has a narrow front yard and a wide backyard. How should Susan describe the lot shape in the MLS listing?
A) Zero lot line lot
B) Corner lot
C) Pie Lot
D) Reverse Pie lot
C) Pie Lot
Zero lot line lot = house is located on one side of the property leaving a lot of room on the other side
Which of the following statements describe the details of an incentive?
Choose only ONE best answer.
A) The incentive must be offered by all real estate professionals registered with the brokerage
B) The incentive must be available to all members of the public to attract business to the brokerage
C) The incentive is provided by the brokerage and paid for by the brokerage
D)All the statements are correct
D) All the statements are correct
Anything a brokerage offers or gives to a person who is, or could be, a party to a real estate or mortgage transaction, meant to assist, persuade or cause that person to enter into a particular real estate or mortgage transaction - is describing what?
A) Inducement
B) Incentive
C) Referral
D) Enticement
A) Inducement
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 will host. According to the Rules related to support personnel and assistants, choose the best answer regarding the actions Marie is performing.
Choose only ONE best answer.
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 information if Michael approves all the work she completes
D) Marie can prepare the promotional information without any supervision as she was once an industry professional
C) Marie can prepare the promotional information if Michael approves all the work she completes
Which of the following statements is an example of an appropriate incentive?
Choose only ONE best answer.
A) A brokerage offers the use of its moving van to attract new business
B) A brokerage agrees to pay the seller’s legal fees to make the sale
C) A real estate professional offers free travel miles to attract new business
D) All the statements are correct
A) A brokerage offers the use of its moving van to attract new business
Which of the following statements is correct regarding a real estate brokerage that operates under common law agency?
Choose only ONE best answer.
A) The agency relationship between a client and the brokerage extends to all real estate professionals of the brokerage
B) Any client information obtained is attributed to all real estate professionals of the brokerage
C) Real estate professionals of the brokerage must inform the public of the type of agency practiced
D) All the statements are correct
D) All the statements are correct
HOW TO CALCULATE CONDO FEES
Ben Sadler is excited about buying his first home, a unit in a nice condo downtown. According to the Certificate of Title, He has 200 unit factors. If the annual anticipated expense for his condo is $600,000 what will bens monthly condo fees be?
A) $12,000
B) $750
C) $1,000
D) $1,200
TOTAL # OF UNIT FACTORS IN AB = 10,000
Total annual expense for Bens Condo = 600,000
Bens unit factors = 200
the calculation is
1. Total annual expense / unit factors in AB
600,000 / 10,000 = 60
- 60 * bens unit factors = yearly contribution
60 * 200 = 12,000 - 12,000/12(months) = 1000 monthly contribution
Which of the following 5’C’s of credit are represented by TDS and GDS ratios
A) Character
B) Capacity
C) Collateral
D) Capital
GDS is the percentage of your monthly household income that covers your housing costs. It must not exceed 39%.
TDS is the percentage of your monthly household income that covers your housing costs and any other debts. It must not exceed 44%.
Which of the following is NOT apart of the 5C’s of capital
A) Character
B) Capacity
C) Collateral
D) Capital
E) Credibility
F) Conditions
E) Credibility
1) Character - credit score
2) Capacity - ability to repair the loan
3) Collateral - assets
4) Capital - borrowers personal investment in the project
5) Conditions - purpose of lone & interest
What does the Real Estate Assurance Fund Cover?
A) Errors, Omissions and Commissions
B) Errors, Commissions and Fraud
C) Error Omissions and Negligent Acts
D) Fraud, Failure to disburse funds and Breach of Trust
D) Fraud, Failure to disburse funds and Breach of Trust
What is the reason for a party to add a condition to an offer to purchase?
A) To protect the party that added the condition to the offer to purchase
B) To give the buyer an out if they change their mind about the property
C) To keep other buyers from being able to purchase the property
D) To protect the real estate brokerage from being involved in any litigation
When we put an offer on a property there are certain conditions that go on that offer
conditions like - condition to financing, condition to inspection
These are put in place to protect the buyer (or whoever is putting the conditions in place) if conditions are not met, then the person can back out of that transaction
A) To protect the party that added the condition to the offer to purchase
What is the difference between CONDITIONS and TERMS
A condition is a something the buyer either needs to waive or fulfill by an agreed time in order for the sale to be finalized,
while a term is used to clarify what the buyer expects to be done or included with the property
Which of the following statements describes a possible advantage to a buyer who assumes an existing mortgage?
Choose only ONE best answer.
A) If the borrower defaults on the mortgage the lender has no recourse
B) The buyer does not need to qualify under the lender’s guidelines
C) The interest rate on the mortgage may be lower than current market rates
D) The buyer does not have to provide a down payment to purchase the property
C) The interest rate on the mortgage may be lower than current market rates
Which statement best describes the seriousness of fraud for housing in relation to fraud for profit?
Choose only ONE best answer.
A) Fraud for profit is more serious than fraud for housing because it may involve organized crime
B) Fraud for housing is less serious than fraud for profit because of less financial loss
C) Fraud for housing and fraud for profit are both serious offences for all those involved
D) Fraud for profit is more serious because it may provide a way to launder dirty money
C) Fraud for housing and fraud for profit are both serious offences for all those involved
Which of the following is a best practice that real estate professionals can implement to prevent mortgage fraud?
Choose only ONE best answer.
A) Pull and review the current and historic title of the sale property
B) Be aware if the mortgage brokerage professional has an interest in the sale property
C) When representing a buyer, ensure the applicable conditions are included in the purchase contract
D) All are best practices that can help prevent mortgage fraud
D) All are best practices that can help prevent mortgage fraud
Which mortgage fraud scheme is presented by 2 or more transactions on a property in a short period of time in order to inflate the sale price?
Choose only ONE best answer.
A) Property flip
B) Secret second
C) Equity access
D) Contract kiting
A) Property flip
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?
Choose only ONE best answer.
A) $100,000 maximum
B) $35,000 maximum
C) $25,000 maximum
D) No maximum amount
B) $35,000 maximum
What is the purpose of the Real Estate Assurance Fund?
Choose only ONE best answer.
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) To compensate consumers who have received a court judgment against a real estate professional for fraud or breach of trust
Which of the following situations may be problematic for brokerages regarding their management of clients’ confidential information?
I. Access to client files is limited to authorized brokerage personnel only
II. Discussions regarding clients and transactions at brokerage sales meetings
III. Office equipment shared by administrative staff and real estate professionals
IV. Home office arrangements and the treatment of client information in transit
Choose only ONE best answer.
A) Statements I, II, and III
B) Statements I, III and IV
C) Statements II, III and IV
D) All situations are problematic
C) Statements II, III and IV
Which of the following is the provincial privacy legislation in Alberta?
Choose only ONE best answer.
A) Personal Information Protection Act
B) Privacy and Electronic Documents Act
C) Freedom on Information Act
D) Personal information Protection and Electronic Documents Act
A) Personal Information Protection Act
Real estate brokerages must report suspicious transactions to which of the following organizations?
Choose only ONE best answer.
A) PIPA
B) PIPEDA
C) FINTRAC
D) PCMLTFA
C) FINTRAC
Financial Transactions and Reporting Analysis Center of Canada
FINTRACs mandate is to “facilitate the detection, prevention, and deterrence of money laundering and the financing of terrorist activities”
Which of the following statements is correct regarding the length of time that real estate professionals are obligated to keep client information confidential?
Choose only ONE best answer.
A) It continues for a minimum of 1 year after real estate services were provided
B) It ceases after 5 years from the date the estate services were provided
C) It continues without a time limit after real estate services are no longer provided
D) It depends on whether the services provided included a real estate transaction
C) It continues without a time limit after real estate services are no longer provided
To which of the following activities does PIPEDA apply?
I. Federally regulated commerce
II. International and interprovincial commerce
III. Commerce where there is a similar provincial privacy legislation
IV. Commerce where there is no provincial privacy legislation
Choose only ONE best answer.
A) Statements I, II and III
B) Statements I, II and IV
C) Statements I, III and IV
D) Statements II, III and IV
The Personal Information Protection and Electronic Documents Act is a Canadian law relating to data privacy
B) Statements I, II and IV
Which of the following responsibilities do real estate professionals owe customers?
Choose only ONE best answer.
A) Only some general obligations
B) Only some fiduciary duties
C) Both general obligations and fiduciary duties
D) No responsibilities are owed to customers
A) Only some general obligations
CUSTOMERS are not clients
Which of the following best describes a written acknowledgement?
Choose only ONE best answer.
A) It should state that the consumer received and understands the written disclosure made by a real estate professional
B) It should state that the consumer has revealed confidential information to the real estate professional
C) It should state that the consumer has chosen to establish a non-representation relationship with the real estate professional
D) It should state that the consumer has chosen to establish a representation relationship with the real estate professional
A) It should state that the consumer received and understands the written disclosure made by a real estate professional
Which of the following services may be provided to customers?
Choose only ONE best answer.
A) Providing statistics and information on comparable properties and the market
B) Providing and completing the standard forms and agreements
C) Providing the names of several other industry professionals/ service providers
D) All services may be provided to customers by real estate professionals
D) All services may be provided to customers by real estate professionals
Which of the following statements indicate the 3 fundamental principles upon which fiduciary duties are based?
- Loyalty
- Best interests
- Act in person
- Trust and confidence
Choose only ONE best answer.
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) Statements I, II and IV
The 3 fundamental principles upon which fiduciary duties are based are
- Loyalty
- Best Interest
- Trust and Confidence
Which of the following describes what is meant by a lawful instruction?
Choose only ONE best answer.
A) Any instruction that is given in writing
B) Any instruction that is contrary to the law
C) Any instruction that aligns with real estate professional’s judgement
D) Any instruction that is reasonable and ordinary under the circumstances
D) Any instruction that is reasonable and ordinary under the circumstances
Which of the following describes what is meant by an unlawful instruction?
Choose only ONE best answer.
A) Any instruction that is given in writing
B) Any instruction that is contrary to the law
C) Any instruction that aligns with real estate professional’s judgement
D) Any instruction that is reasonable and ordinary under the circumstances
B) Any instruction that is contrary to the law
What is the difference between a condition and a term in a contract?
Choose only ONE best answer.
A) Conditions must be waived for the contract to proceed, while a contract can still proceed with unmet terms
B) Conditions do not keep a contract from proceeding, but unmet terms do stop a contract from proceeding
C) Conditions are essentially the same as terms within the context of a legal contract
D) Conditions protect the parties to the contract, while terms are the essential details of the contract
D) Conditions protect the parties to the contract, while terms are the essential details of the contract
Which of the following contracts must be in writing according to the Statute of Frauds?
Choose only ONE best answer.
A) Contracts involving the sale or transfer of land
B) Contracts to answer for the debt or duty of another
C) Contracts that by agreement cannot be completed within 1 year
D) All of the statements are correct
D) All of the statements are correct
How can real estate professionals utilize electronic signatures and electronic agreements to facilitate their business activities?
- They may store the required documents electronically
- They may electronically sign on behalf of the buyer or seller
- They can finalize agreements remotely with a buyer or seller
- They are not required to provide a true copy to the buyer or seller
Choose only ONE best answer.
A) Statements I and II are correct
B) Statements I and III are correct
C) Statements II and IV are correct
D) Statements III and IV are correct
B) Statements I and III are correct
Which of the following is included in the definition of a fee simple estate?
Choose only ONE best answer.
A) It grants an interest in land for a fixed and determinable period of time
B) The estate holder has an interest for the duration of their lifetime
C) The estate hold is considered to be the absolute owner of the land
D)The Crown is the only entity that may hold a fee simple estate
C) The estate hold is considered to be the absolute owner of the land
Fee Simple
The highest estate form of land/property ownership with the most rights with the fewest limitations. Although generally considered absolute ownership, it is still subject to the restrictions imposed by government.
