EXAM PREP Flashcards by Charlie Gray

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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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.

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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

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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

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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? 1. The buyer is pre-approved for a mortgage 2. The buyer dose not provide photo identification 3. The list price is unusually high for the neighborhood 4. 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 1. Use of cash for transactions 2. Use of a nominee for transactions 3. Use of straw buyers for transactions 4. 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? 1. It is information that the brokerage has deemed to be confidential 2. It is information individuals identify to others as being confidential 3. It may include both personal and business info 4. 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 3. It may include both personal and business info - CONTAINS CONFIDENTIAL INFO can identify a person 4. 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? 1. Names of the tenants and the amount of rent they will pay 2. Address of service and a deposit equal to one months rent 3. Start and end dates for the rental agreement 4. 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 4. 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.

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. 1. Utilitarian Ethics 2. 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 2. 60 * bens unit factors = yearly contribution 60 * 200 = 12,000 3. 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? 1. Loyalty 2. Best interests 3. Act in person 4. 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 1. Loyalty 2. Best Interest 3. 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? 1. They may store the required documents electronically 2. They may electronically sign on behalf of the buyer or seller 3. They can finalize agreements remotely with a buyer or seller 4. 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.

Which type of remedy for breach of contract results in the court ordering that the terms of the contract be carried out? Choose only ONE best answer. A) Injunction B) Consideration C) Quantum Meruit D) Specific Performance

D) Specific Performance

The capacity of a party is an essential element of a contract. Which of the following is an issue related to capacity? Choose only ONE best answer. A) The buyer is purchasing a house and seeks advice from a family member B) The buyer appears to be under the influence of drugs or to be intoxicated C) The buyer is using a quantity of gemstones as partial payment for a property D) The buyer must accept a higher interest rate on the loan due to poor credit rating

B) The buyer appears to be under the influence of drugs or to be intoxicated

What is the significance of a Municipal Certificate of Compliance? Choose only ONE best answer. A) It confirms that the building location complies with the Municipal Land Use Bylaw B) It confirms that the location of the suite complies with the Municipal Land Use Bylaw C) It confirms that the address of the property is correct according to the Municipal records D)It confirms that the legal description of the property conforms to municipal standards

A) It confirms that the building location complies with the Municipal Land Use Bylaw

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? Choose only ONE best answer. A) Land use zones B) Land use districts C) Land use categories D) Land use developments

B) Land use districts

Which of the following should the sellers real estate professional do regarding the service agreement when discussing the RPR (real property reports) with the seller A) They should ensure the seller understand the warranties and representations it contains B) The should amend the arranties and representations to reflect the sellers decision C) They should advise the seller that land matters are also part of the purchase D) All statements are correct

Which of the following should the sellers real estate professional do regarding the service agreement when discussing the RPR (real property reports) with the seller A) They should ensure the seller understand the warranties and representations it contains B) The should amend the warranties and representations to reflect the sellers decision C) They should advise the seller that land matters are also part of the purchase D) All statements are correct

D) All statements are correct talking about the service agreement we have the seller sign when we list their property

Real Estate professionals should measure an irregular shaped property by using which approach? A) Subtraction B) Addition C) Equilibrium D) Totalitarian

B) Addition when measuring irregular shaped properties (that have some additions that jut out) Measure those sections separately and then ADD them back together

John is a new real estate associate who is representing seller Maya. John measured Mayas property which came to 1,488 sq. ft. John has heard from more experienced real estate associates that most buyers in that area have growing families and are looking for homes that are at least 1,500 sq. ft. He lists Mayas house as 1505 sq.ft What misstep has john conducted here? A) Intentional misrepresentation B) unintentional misrepresentation C) Reckless misrepresentation D) Negligent misrepresentation

A) Intentional misrepresentation Unintentional misrepresentation - would be if the person makes an honest mistake Reckless - would be if the person didn't even measure the house at all

Which of the following information can be found on a Certificate of Title? A) The full legal description B) The municipality where the property is located C) The land identification number code (LINC) D) All of the above

D) All of the above

Ruth, a residential real estate professional, is showing a property to a prospective buyer. The property they are viewing is attached on one wall to another property of a similar nature. Which of the following terms should Ruth use to describe this type of property? A) Half-split property B) Dual attached property C) Semi - detached property D) Partially attached property

C) Semi - detached property two dwellings that are attached by a common wall

Which of the following due diligence activities must a real estate professional perform for the seller of a bare land condominium unit? A) Review the sellers existing RPR and discuss how a current RPR can facilitate a sale B) Search the title to confirm ownership and discuss any title registrations that may affect the sale C) Review the sellers condo documents for their currency and completeness D) All of the above

B) Search the title to confirm ownership and discuss any title registrations that may affect the sale

What is a RPR

An REAL PROPERTY REPORT is a legal document an Alberta Land Surveyor prepares. It’s basically a high level drawing of the property, the boundaries, and the buildings and structures on it, so buyers know exactly what they’re buying. An RPR contains: legal description and municipal address of the property date of land title search and date RPR was done Certificate of Title (land title) number and names of registered owner(s) location and description of all buildings and structures (e.g. decks, fences) with dimensions, directions and distances from the property boundaries location and dimensions of any visible encroachments (i.e. buildings or structures that are too close or even beyond the property line) designation of adjacent properties, roads, lanes evidence of municipal compliance (i.e. the RPR has been reviewed by your municipality and adheres to all municipal bylaws and regulations. They usually stamp and date compliance directly on the RPR) illustrations of any easements that affect the property (an easement is an agreement between the property owner and some other party (usually your municipal authority or utility) for them to utilize part of your property as needed) Certified Land Surveyor’s duly signed certification and opinion on any concerns copyright of the RPR to the land survey company

What is a Bare Land Condominium?

A bareland (or bare land) condo is a type of condominium complex in which the owners each own their individual lot (or plot of land). It is the opposite of a conventional condominium where the owners collectively own the land and individually own their unit.

You overhear two real estate agents talking about the current real estate market conditions. They say " We are in a buyers market". Your lease has recently run out and you've been thinking about buying a house. What does this statement tell you? A) You'll have to pay full listing price for the property or maybe even higher B) Sellers typically receive multiple offers on their property C) You'll have a greater negotiating power in this market D) You'll be able to take your time to find your dream home

C) You'll have a greater negotiating power in this market D) You'll be able to take your time to find your dream home

Which type of electrical outlet is used in bathrooms and other areas where water may come into contact with electricity an includes a test and rest button? A) Ground circuit interrupter B) Polarized circuit interrupter C) Tamper resistant circuit interrupter D) Ground fault circuit interrupter

D) Ground fault circuit interrupter

While preparing CMA, Jackie, A real estate professional finds two comparable properties that have a garage, which the subject property does not. What should Jackie do in this case? A) A positive adjustment must be made to the subject property B) A negative adjustment must be made to the subject property C) A positive adjustment must be made to the comparable property D) A negative adjustment must be made to the comparable property

D) A negative adjustment must be made to the comparable property Jackie finds two properties that have a garage which means that comparable properties are better than the subject properties. Adjustments are ALWAYS made to the comparable properties and never the Subject property as we don't have the price for the subject property (this is the price we. are trying to arrive at) can not make adjustment to a price that we do not have

John and Jessica would Luke to buy their first home. They have been doing their research and decided that they'd like a low maintenance landscaping that uses NATIVE and low water demanding plants in order to reduce water usage. What time of landscaping should the house have? A) Zeroscaping B) Xeriscaping C) Aquascaping D) Stonescaping

B) Xeriscaping (Native and low water demand plants) Landscaping that uses no plants = Zeroscaping

Under the Torrens System, which principle ensure 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 above

B) the Mirror Principle - refers to the Certificate of Title to reflect accurate current information The Torrens systems of land registration states that government offices have custody of all original land titles and documents The Curtain principle = the Certificate of title contains all the info about the title The insurance principle = provides compensation for loss of rights

Which of the following encumbrances take priority over the registration of any mortgage ? A) Builders liens and condo fees B) Property taxes and short term leases C) Condo fees & property taxes D) Short term leases and property taxes

C) - condo feeds and property taxes

According to the Dower Act, Which of the following is NOT one of the criteria used to determine if the Dower applies A) the owners of the property are married B) A single name appears on the certificate of title C) The property is mortgaged in the name of one party D) It either spouse resided on the property since the marriage

What is meant by the term "current" Real Property Report A) A real property report that is maintained in the land surveyors database of 7 years B) A real property report that has been created within the past 12 months C) An existing real property report plus a sellers affidavit that no further property improvements have been made D) A Real property report that reflects the same property detail today as on the date the report was done

D) A real property report that reflects the same property detail today as on the date the report was done

Which of the following is included in a few simple ownership? A) Right to assign any mortgage on the land B) Right to use the property for a specified period of time C) Right to occupy the property until it reverts to another property D) Right to the property as long as the property taxes are paid

D) Right to the property as long as the property taxes are paid

The Assessment of property taxation purposes is carried out under which provincial statutes? A) The property assessment act B) The condo property act C) The Municipal government Act D) The Real estate assessment act

C) The Municipal government Act

Jane hires Mary Lu to list her single level townhouse. When Mary arrives to meet Jane for the listing, she notices that there is another townhouse located directly above Janes townhouse. Each townhouse has its own entrance. What is Janes Townhouse style? A) Row townhouse B) Multi-story townhouse C) Cluster townhouse D) Stacked townhouse

D) Stacked townhouse

Jane hires Mary-Anne, A real estate associate, to list her home. When Mary-Anne arrives to meet Jane for the listing, she notices that there is another home located beside Janes home such that bother the houses share a common wall. Each home has its own Entrance. What is Janes home style? A) A townhouse B) A Duplex C) A bungalow D) A detached house

B) A duplex (because its only concerning two homes)

While holding an open house for her client Monica, Jill, a real estate associate, met James, who wants to put in an offer on that property. What are the responsibilities that Jill owes to Monica A) Fiduciary Responsibilities B) General Obligations C) General Responsibilities D) General Duties

A & B because Monica is her client she owes her BOTH Fiduciary responsibilities ABD General obligations If the question was asking about what Jill owes to JAMES the answer would be only B) General obligation because James is a customer and not a client

Joe hires Mary to list his family home. When Mary arrives to meet Joe for the listing, she notices that there are some roof singles missing on the roof. Joe explains that the overnight windstorm blew the shingles off the roof. What type of defect does this situation represent? A) A Material latent defect B) A Patent defect C) A material patent defect D) Joes laziness

B) A patent defect = when you can actually see the defect with your eyes aka you can visibly see that roof singles are missing (Usually easier on the budge to fix) A Material latent defect = something that we can no see with our naked eyes (cost a ton to fix normally) eg a crack in the foundation or a flooded basement

Mark Roberts is holding an open house at his client Mary's property. John who comes to look at the house is interested in it and wants to put in an offer. What type of services can Mark provide for John? A) Draw up an offer for John B) Advise on how much to offer for the house C) Provide an opinion on whether John should buy this house D) Offer an opinion on how much the seller will accept for the property

A) Draw up an offer for John

Val is a new real estate associate. She wants to know which of the following scenarios would prompt a real estate professional to provide a real-estate professional to provide a written disclosure to a consumer. How would you answer that question? A) A consumer attending an open house B) A consumer revealing their price range & preferred locations C) A consumer revealing their motive D) A consumer requesting market statistics

C) A consumer revealing their motive MOTIVE (their why for buying)

Mark hires John, a real estate professional, to find him a building to house his shoe factory. John approaches a number of owners of properties that would fit Marks business. Which of the following would best describe the relationship John has with everyone? A) Mark is the client and the property owners are clients as well B) Mark is the client and the property owners are customers C) Mark is the customer and the property owners are clients D) Mark is the customer and the property owners are customers as well

B) Mark is the client and the property owners are customers

Sue Hill is holding an open house at her client Mary's property. Tom meets Sue at the open house and asks her for information regarding previous sales in the area. Which responsibilities does Sue owe to Tom? A) Fiduciary Responsibilities B) General Obligations C) General Responsibilities D) General Duties

B) General Obligations Mary is the client Tom is a customer Mary would be owed statements A & B But since Tom is just a customer and not a client he is only owed B) General Obligations

Nadine wants to hire Pauline to help her purchase a residential property. Pauline asks her to sign a service agreement which establishes the responsibilities and services to be provided. What are the requirements for the service agreement? A) A Service agreement must be in writing B) A service agreement should be in writing C) A service agreement can be oral D) A service agreement dose not need to be in writing

A) A Service agreement must be in writing

Charlie is holding an open house for one of her listings. What type of relationship does Charlie have with the property owner?

Representation relationship

Charlie is helping her clients Fred and Mary purchase a small agricultural farm. They want to ensure they are able to use the water diversion the previous owner has in place. What should Charlie tell them about the water license? A) They will have to buy the water license separately from the previous owners B) They'll need to apply for the water license from the AB government C) They'll need to find someone who is selling a water license D) A water license runs with the land

D) A water license runs with the land If someone buys a home or property that already has a H20 License, the license will come with their purchase already - they do not need to buy it separately

Which of the following uses are exempt under Alberta Water Act? A) Domestic household use B) Traditional agricultural use C) Firefighting D) Wells equipped with hand pumps E) All of the above

E) All of the above are exempt under the Alberta water Act which means you do not need to get a water license for these uses.

The statement " A buyer will pay no more for a property than the cost of acquiring a similar and equally desirable property on the market" best describes which principle pf value. A) Principle of substitution B) Principle of Anticipation C) Principle of Regression D) Principle of Progression

A) Principle of substitution

Charlie is helping her clients buy rural property. During her research, she find out that the owner of the property has diverted groundwater without having received authority from the AB government. According to the water act, what does the property owner need in order to be able to divert water? A) Water Permit B) Water License C) Water Agreement D) Water Easement

B) Water License In order to divert water in AB (either commercial or residential) you must have a water license.

The statement " Where properties in the same area are dissimilar, the property with lesser value will be enhanced in value by its proximity to properties of higher value" best describes which principle of value? A) Principle of substitution B) Principle of Anticipation C) Principle of Regression D) Principle of Progression

D) Principle of Progression

Which of the following terms best describes personal property items such as furniture, appliances ect.? A) Chattels B) Real property C) Tangible property D) Moveable property

A) Chattels - items that can be removed from the house and are not fixed into the ground TVs, swing set, above ground swimming pools, furniture, appliances ect

The statement " Where properties in the same area are dissimilar, the property with higher value will be adversely affected in value by its proximity to properties of lesser value" best describes which principle of value? A) Principle of substitution B) Principle of Anticipation C) Principle of Regression D) Principle of Progression

C) Principle of Regression

What is the purpose of the reserve fund? A) to cover shortfalls in the annual budget B) to pay for ongoing maintenance expenses C) to pay for the repair and replacement of major capital items D) to help unit owners who cannot pay their monthly condo fees

C) to pay for the repair and replacement of major capital items eg. the roof needs to be replaced a condo building or repave the entire parking lot has to do with CONDOS

Which type of properties have A " Real Property Report" ? A) Bare land condominiums B) Conventional condominiums C) Barley blended condominiums D) All of these

A) Bare land condominiums they will have a Real Property Report because they are parcels of land

The statement " The expected value of the property exposed to the market for a reasonable period of time involving informed buyers and sellers" Describes which of the following? A) Asking price B) Sale price C) Market value D) Assessed value

C) Market value

Tina, a real estate professional, while doing research for her seller client, finds out that $350,000 is the most frequent sale price in her neighborhood. What is this number called? A) The mean sale price B) The mode sale price C) The average sale price D) The median sale price

B) The mode sale price Mode = the most frequent in a sequence Mean=The average = adding all the data then dividing by the number of values in the set Median = the middle number

The limitations to rights of property ownership include? A) the right of the government to impose property taxes B) The right of the government to expropriate the land for public good C) the right of the government to establish laws to regulate the use of the land D) All of the above

D) All of the above

Sam Lee helps his client Amy buy her first home. Amy asks him about her rights that came with real property ownership. These include? (BUNDLE OF RIGHTS) A) The right to rent her place B) the right to possession, enjoyment and use of the property C) the right to sell the property D) The right to enter the property E) All of the above

E) All of the above

The reserve fund study must be completed when? A) Within 2 years for a new condo and every 5 years after that B) Within 3 years for a new condo and every 5 years after that C) Within 5 years for a new condo and every 2 years after that

A) Within 2 years for a new condo and every 5 years after that

What is the name for the type of condos that are typically used by owners as a weekend getaway or vacation destination and are often referred to as second homes? A) Hotel condos B) Detached condos C) Recreational condos D) Mixed-use condos

C) Recreational condos any vacation property where people go every so often = recreational

Which of the following forces affect property values? 1) Economic forces 2) Political forces 3) Social forces 4) Physical forces A) 1,2,3 B) 2,3,4 C) 1,3,4, D) All statements are correct

D) All statements are correct Economic - when economy is not doing so well property values will decline Political - when government policies change property values impacted eg. if government is supporting the property value like they have programs in place that aid people in purchasing property.- or if they start raising rates making it harder for people property values will decline Social - demographic trends - aging populations = moving from detached houses into elder care homes or condos Physical - better climate, not prone to flooding, good location = positive impact on property value

Monica is listing a unit for sale for her clients, in which document can she find the information regarding the total number of units in the condo? A) The bylaws B) Certificate of insurance C) Estoppel Certificate D) Condominium additional plan sheet

D) Condominium additional plan sheet bylaws - will give information about different bylaws that the board has passed eg. if the condo allows pets or not or if the condo has any age restrictions estoppel certificate - will tell you the total number of unit factors and any kind of financial information in terms of if there are any outstanding amounts in collection from any unit owners or pending litigations again condo

Sarah is helping her clients who have a puppy buy a condo. where can she find information regarding any restrictions regarding pets? A) The bylaws B) Certificate of insurance C) Estoppel Certificate D) Condominium additional plan sheet

A) The bylaws same thing applies for age restrictions to the condo as well

Real Estate is best defined as? A) The unimproved land, builds 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 it or below it

A) The unimproved land, builds and other fixed improvements

Real Property is best defined as? A) The unimproved land, builds and other fixed improvements B) Surface resources like soil, gravel and sand C) Attached and unattached structures on the land D) Land, any fixed improvements to the land, as well as the property rights

D) Land, any fixed improvements to the land, as well as the property rights

How will the supply of a good be impacted by the change in QUANITITY SUPPLIED due to a price DECREASE? A) A shift in the quantity supplied B) A shift in the quantity demanded C) A decrease in the quantity supplies D) A decrease in the quantity demanded

B) A shift in the quantity demanded (study this topic more)

Which of the follow statements describes the details of an INCENTIVE? A) must be offered by all real estate professional registered with the brokerage B) must be available to all member of the public to attract business to the brokerage C) is provided by the brokerage and paid for by the brokerage D) all of the above.

D) all of the above.

Which of the following may RECA amend? A) The Rules B) The regulations C) The Act D) All of the above

A) The rules (and bylaws)

The regulations as established by Cabinet and Lieutenant governor in Council cover? A) The administration of the Alberta Real Estate Association and the Real Estate Assurance Fund B) The administration of the Alberta Real Estate Foundation and the Real Estate Assurance Fund C) The administration of the Alberta Real Estate Foundation and the Alberta Real Estate Association D) None of the above

B) The administration of the Alberta Real Estate Foundation and the Real Estate Assurance Fund

Which of the following has the authority to create bylaws governing the council? A) RECA B) Government of AB C) Alberta Real Estate Association D) All of the above

A) RECA unlike the rules - the bylaws can be created and amended by RECA

What market is characterized by: I. Rising property prices II. Expansion in local economy III. Higher demand and Lower Supply of properties A) Buyers Market B) Sellers Market C) Balances Market D) All of the above

B) Sellers Market

A recent newspaper headline states: Local real estate board says its now a sellers market - what does this mean? I. Property prices are going up II. Property prices are going down III. Properties take longer to sell IV. Properties sell quickly Statements: A) 1&4 B) 2&3 C) 1&3 D) 2&4

A) 1&4

Which of the following statements is correct about the common law doctrine of vicarious liability as it relates to trading in real estate? Choose only ONE best answer. A) It means that one person is responsible for the actions of another B)The brokerage is liable for the negligence or other wrongful acts of a person associated with it C) When a real estate professional commits a wrongful act in the provision of business services, the injured party can sue both the real estate professional and the brokerage for damages caused by the real estate professional' s actions. D) All of the above

D) All of the above Common Law Doctrine of Vicarious liability = holds employers accountable for the wrongful negligent or intentional tort actions of their employees, while they are acting in the course of their employment.

What is a strict liability tort? Choose only ONE best answer. A) A wrong generally characterized by carelessness, inattentiveness, and neglectfulness of the real estate professional B) An injury inflicted by positive, willful, and aggressive conduct of the real estate professional C) Tort that holds the real estate professional responsible for the damages from their actions regardless of the level of care exercised or their intentions D) Tort that relates to either an omission or a commission

C) Tort that holds the real estate professional responsible for the damages from their actions regardless of the level of care exercised or their intentions

Which of the following are correct about Tort Law? Tort law deals with civil and criminal matters Tort law assumes that there is a 'standard of care' owed by one party to the other party It seeks to discourage injurious, careless, and risky behavior in the future Torts relate to either an omission or a commission Choose only ONE best answer. A) Statements 1, 2 and 3 B) Statements 2, 3 and 4 C) Statements 1, 2 and 4 D) All of the above

B) Statements 2, 3 and 4

Who is responsible for administering REIX? Choose only ONE best answer. A) RECA B) The Council C) The Advisory Board D) Minister of Service Alberta

C The Advisory Board

To which of the following activities does PIPEDA apply? I. Federally regulated commerce II. International and interprovincial commerce III. Commerce where there is similar provincial privacy legislation IV. Commerce where there is no provincial privacy legislation A) Statements I, II and III B) Statements I, II and IV C) Statements I, III and IV D) Statements II, III and IV

B) Statements I, II and IV Who does the PIPEDA apply to? PIPEDA applies to organizations that collect, use or disclose personal information in the course of commercial activities. I. Federally regulated commerce II. International and interprovincial commerce IV. Commerce where there is no provincial privacy legislation

Which of the following statements describe benefits of the VBRP? May avoid the time and intrusion involved with a RECA investigation May identify deficient brokerage practices that need improvement Allows participation in the process to achieve an acceptable resolution Provides the opportunity to mend relationship with the consumer A) Statements I, II and III B) Statements I, III and IV C) Statements II, III and IV D) All statements apply

VOLENTARY BROKERAGE RESOLUTION PROCESS

Which of the following is NOT a safeguard that a brokerage should use to protect personal information? A) Administrative measures B) Social measures C) Technological measures D) Physical measures

B) Social measures

Which of the following statements are correct regarding personal information collected before the applicable privacy legislation came into effect? I. It is legacy information and not subject to the legislation II. It is legacy information and considered to be collected with consent III. It may be used without consent for other purposes than it was first collected IV. It may be used for a new purpose other than original purpose if new consent is obtained A) Statements I and II B) Statements II and III C) Statements II and IV D) Statements III and IV

It is legacy information and considered to be collected with consent It may be used for a new purpose other than original purpose if new consent is obtained C) Statements II and IV

Which of the following is NOT a type of reaction associated with conflicts or disputes? A) Social reaction B) Physical reaction C) Cognitive reaction D) Emotional reaction

A) Social reaction

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

Privacy legal action between the disputing parties Involves a plaintiff and a defendant appearing in court Established by the courts at the conclusion of legal proceedings B) Statements I, III and IV Civil liability is NOT public

Which of the following statements describe benefits of REIX to the real estate profession? REIX enhances the image of the profession REIX has the potential to save on insurance costs The profession is active in managing the program and its risks Real estate professionals are protected against legal action from clients A) Statements I, II and III B) Statements I, III and IV C) Statements II,III and IV D) All statements apply

A) Statements I, II and III Real estate professionals are not FULLY protected against legal actions from clients this only covers Errors, Omission and negligent acts.

Fatima, a real estate professional with North Star Realty, receives a call from John who wants to list his property. Fatima meets John and explains the different types of relationships that can be established in real estate. What document does Fatima use to make the written relationship disclosure? Choose only ONE best answer. A) Consumer Relationships Guide B) Client Relationship Guide C) Written Service Agreement D) Customer Acknowledgement Form

A) Consumer Relationships Guide

ln an agency, what is the party being represented by another party called? Choose only ONE best answer. A) The customer B) The Third party C) The principal D) The agent

C) The principal

What are the different types of authority that an agent may hold? Express authority Customary authority Direct authority Implied authority Choose only ONE best answer. A) Statements 1, 2 and 3 B) Statements 1, 2 and 4 C) Statements 2, 3 and 4 D) All of the above

A) Statements 1, 2 and 3 Express authority = Express authority involves describing orally or in writing what actions may be taken by an agent on behalf of a principal Customary authority = customary authority involves taking actions that are considered a widely accepted way of behaving under a particular circumstance Implied authority = Implied authority involves undertaking any activities needed to accomplish an action on behalf of the principal

What is implied authority? Choose only ONE best answer. A) Implied authority involves describing orally or in writing what actions may be undertaken by an agent on behalf of a principal B) Implied authority involves taking actions that are considered a widely accepted way of behaving under a particular circumstance C) Implied authority involves undertaking any activities needed to accomplish an action on behalf of the principal D) All of the above

C) Implied authority involves undertaking any activities needed to accomplish an action on behalf of the principal

As a result of the express authority given by Barbie and Ken Roberts to list and market their house, the real estate professional, Brandon, uploads their property details to the multiple listing service, the brokerage database and the Home and Garden newspaper. What type of authority is represented in this scenario? Choose only ONE best answer. A) Express authority B) Direct authority C) Implied authority D) Customary authority

C) Implied authority Implied authority involves undertaking any activities needed to accomplish an action on behalf of the principal

Camil is a new real estate professional with Tradex Realty who has been hired by the Johnsons to sell their property. Camil knows that it’s a common practice for real estate professionals to a have a brochure with the property details for interested buyers to take with them after open houses and showings. He, therefore, creates a full colour brochure highlighting the property features and leaves it at the Johnsons house. What type of authority is represented in this scenario? Choose only ONE best answer. A) Express authority B) Direct authority C) Implied authority D) Customary authority

D) Customary authority Customary authority = customary authority involves taking actions that are considered a widely accepted way of behaving under a particular circumstance

Which of the following are the elements of representation relationships? 1. Creation of Law 2. Written Agreement 3. Consensual 4. Controlled by principal 5. Usually involves fiduciary Duties 6. Affects Principal’s legal position Choose only ONE best answer. A) Statements 1, 2, 3, 4 and 5 B) Statements 1, 2, 4, 5 and 6 C) Statements 1, 3, 4, 5 and 6 D) All of the above

C) Statements 1, 3, 4, 5 and 6

Representation relationships can be established in which of the following ways? By implication By ratification By estoppel By operation of law Choose only ONE best answer. A) Statements 1, 2 and 3 B) Statements 1, 2 and 4 C) Statements 2, 3 and 4 D) All of the above

D) All of the above

Which element of the representation relationships states that the agent must at all times obey the lawful instructions of the client, regardless of whether the agent agrees with those instructions or not? Choose only ONE best answer. A) Creation of Law B) Consensual C) Controlled by principal D) Usually involves fiduciary Duties

C) Controlled by principal

Which element of the representation relationships states that whether a representation relationship exits or not is determined by the courts and is usually based on the actions taken by the parties? Choose only ONE best answer. A) Creation of Law B) Consensual C) Controlled by principal D) Usually involves fiduciary Duties

A) Creation of Law

Which element of the representation relationships states that a representation relationship is formed and exits with the consent of both the principal and the agent and that the consent can be written, verbal or implied? Choose only ONE best answer. A) Creation of Law B) Consensual C) Controlled by principal D) Usually involves fiduciary Duties

B) Consensual

Which element of the representation relationships states that a principal is legally liable for the actions taken by an agent who is acting on his or her behalf so long as the agent acted within the scope of authority that was granted? Choose only ONE best answer. A) Creation of Law B) Consensual C) Affects Principal’s legal position D) Usually involves fiduciary Duties

C) Affects Principal’s legal position

A representation relationship is established by ________ when a principal acts in a way that leads a third party to believe that an agent has been given authority to act on behalf of the principal. However, the agent has not consented to the creation of a representation relationship with the principal. Choose only ONE best answer. A) By estoppel B) By operation of law C) By ratification D) By implication

A) By estoppel

A representation relationship is established by __________ when an agent acts without authority or in excess of authority that has been granted. As a result, the principal subsequently agrees to be bound by the unauthorized act. Choose only ONE best answer. A) By estoppel B) By operation of law C) By ratification D) By implication

A) By estoppel

A representation relationship is established by __________ when an agent takes immediate action to save the property of a principal from imminent danger. Choose only ONE best answer. A) By estoppel B) By operation of law C) By ratification D) By implication

B) By operation of law

Which of the following are the general obligations owed to clients by real estate professionals? 1. Exercise care and skill 2. Utmost loyalty 3. Perform mandate 4. Act in person Choose only ONE best answer. A) Statements 1, 2 and 3 B) Statements 1, 3 and 4 C) Statements 2, 3 and 4 D) All of the above

B) Statements 1, 3 and 4 The general obligations owed to clients are: Exercise care and skill Act honestly Perform mandate Obey lawful instructions Act in person Disclose information Maintain confidentiality Negotiate favorable terms

Which of the following are fiduciary duties owed to clients by real estate professionals? Act honestly Utmost loyalty To account Not make secret profits Choose only ONE best answer. A) Statements 1, 2 and 3 B) Statements 1, 3 and 4 C) Statements 2, 3 and 4 D) All of the above

C) Statements 2, 3 and 4 The fiduciary duties owed to clients are: Utmost loyalty To account Not make secret profits Handle confidential information Avoid conflicts of interest Disclose conflicts of interest

John and Melissa Simpson have recently married and moved into John’s apartment. Two months later, John has an accident and passes away. John didn’t get a chance to change his Will which leaves his estate to his brother Henry. Which of the following statements apply in this scenario? Henry becomes the Fee Simple owner of the property Melissa becomes a life tenant of the property Henry can sell the house now that John has passed away Melissa becomes the Fee Simple owner of the property Choose only ONE best answer. A) Statements 1 and 2 B) Statements 2 and 3 C) Statements 3 and 4 D) Statements 2 and 4

A) Statements 1 and 2

Which of the following is an example of an encumbrance? A) A mortgage registered for a loan against a property B A caveat that details the nature of a limitation on a property C) A lien that identified a claim on a property for payment of a debit D) All of the above are examples of an encumbrance

D) All of the above An encumbrance is any burden, interest, right, or claim that adversely affects a real property's use and value but does not necessarily prohibit the ability to transfer title.

Which of the following statements is true about title insurance? A) Title insurance and real property reports are essentially interchangeable B) Title insurance protects the lender and property owner rom title fraud of forgery C) Lenders will automatically accept Title insurance if there is no real property report D) Commercial title insurance and residential title insurance cover the same risk

B) Title insurance protects the lender and property owner from title fraud of forgery

Upon registration of a condo plan, a condo corporation is given the name " Condo Corp No. 0625998" In what year was the condo created?

2006

Karen has finished her REAP. After 12 months, she gets her CRC done and wants to register with a brokerage. What does she need to do? 1. Apply for an extension from RECA 2. Complete an Associate application for Registration wit the brokerage 3. Complete the Real Estate Associate Program again 4. Meet all other requirements of a first time applicant

Statements 3 & 4 3. Complete the Real Estate Associate Program again 4. Meet all other requirements of a first time applicant

Blair is a real estate professional with Highland Realty. He decided to go back to school for 2 years. When Blair returns, what steps must he compete? 1) Compete an Associate application for registration with the brokerage 2. Submit a CRC to RECA 3. Complete all Relicensing education program courses that were required to registration renewal during the period of time that Blair was unregistered. 4) Complete all the REAP courses

Statements 1,2&3 1) Compete an Associate application for registration with the brokerage 2. Submit a CRC to RECA 3) Complete all Relicensing education program courses that were required to registration renewal during the period of time that Blair was unregistered.

which of he following statements is true regarding the bylaws? 1) the bylaws are guidelines that specify how RECA conducts and operates its business 2) Bylaws set policies in place in regards to the organization and administration of the ABREF and the REAS 3) Bylaws contain most of the requirements affecting licensee business activities 4) RECA can create and amend the bylaws

Statements 1 & 4 1) the bylaws are guidelines that specify how RECA conducts and operates its business 4) RECA can create and amend the bylaws

Which of the following activities requires authorization from RECA ? (choose two) A) A person soliciting property listings or property management contracts from prospective clients B) A non-profit organization or an employee leasing or renting of subsidized residential premises C) A person collecting and disseminating borrower information to lenders for financing real property D) A person who acquires or has any interest in real estate, who disposes or real estate owned by that person

Statements A & C A) A person soliciting property listings or property management contracts from prospective clients C) A person collecting and disseminating borrower information to lenders for financing real property

On what basis does the right of rescission operate in regards to the purchase of a unit? A) The buyer’s failure to take possession of the unit on the closing date B) The buyer’s dissatisfaction with the condominium documents C) The buyer’s dissatisfaction with the property inspection D) The buyer’s failure to obtain adequate financing for the purchase Next Question

B) The buyer’s dissatisfaction with the condominium documents

Which of the following reserve fund documents are in the correct order as relates to their development? A) Reserve Fund Report, Reserve Fund Study, Reserve Fund Plan B) Reserve Fund Plan, Reserve Fund Study, Reserve Fund Report C) Reserve Fund Study, Reserve Fund Report, Reserve Fund Plan D) Reserve Fund Study, Reserve Fund Plan, Reserve Fund Report

C) Reserve Fund Study, Reserve Fund Report, Reserve Fund Plan STUDY --> REPORT --> PLAN

Which of the following statements includes information found on an Estoppel Certificate? A) Any fees that have been paid to condominium corporation B) The monthly contributions assessed for the particular unit C) The last financial statement of the condominium corporation D) The date at which the condominium bylaws were last amended

B) The monthly contributions assessed for the particular unit

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) To levy a special assessment on all units

What does a third-party warranty program refer to? A) A developer warranty program B) An extended warranty program C) A real estate warranty program D) A property inspection warranty program

B) An extended warranty program

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 ability of purchasers to cancel their purchase contract with a DEVELOPER

Kate, a real estate professional, just listed a unit for sale and she wishes to determine what expenses the monthly contributions include. Where would Kate find this information? A) The bylaws B) The Annual Budget C) The Estoppel Certificate D) The management agreement

B) The Annual Budget (on the fee schedule located on the annual budget)

Which of the following is NOT a type of condominium in Alberta? A) Bare land B) Conventional C) Barely blended D) Blended conventional

D) Blended conventional

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) Statements II and III

Sam, a real estate professional, has just listed a unit for sale and he wishes to contact the condominium management company to get more information. However, the owner cannot remember the name of the company. Where would Sam find this information? A) On the unit title B) On the CADS C) On the Estoppel Certificate D) On the Certificate of Insurance

B) On the CADS

D) On the Certificate of Insurance

Rita Sharma is a real estate professional helping her clients Raj and Sheila Shaw purchase a condominium unit in Oxford Condominiums. Raj and Sheila both need parking as they drive to work separately. Which document can Rita review to see the type of parking that is included with the unit Raj and Sheila are interested in purchasing? Choose only ONE best answer. A) The Condominium Plan B) The Estoppel Certificate C) The Fee Schedule D) The Condominium Additional Plan Sheet

A) The Condominium Plan

Which of the following types of condominiums would require a Real Property Report (RPR)? Conventional Condominium Bare Land Condominium Bare Land built-out Condominium Blended Condominium A) Statements 1and 2 B) Statements 1and 3 C) Statements 2 and 3 D) Statements 2 and 4

C) Statements 2 and 3

Jen and Brian Johnson are looking to purchase their first home. They contact Shane Bileu from Top Realty to help them find a suitable 2 bedroom unit. They are expecting their first child so they believe extra storage will be very important for them. Which document can Shane check to see what type of storage comes with the unit? Choose only ONE best answer. A) The Condominium Additional Plan sheet B) The Condominium Plan C) The Real Property Report D) All of the above

B) The Condominium Plan

Carrie Smith is a real estate professional registered with Premiere Brokerage. She is helping her client Jen buy a one bedroom condominium in Edmonton. The condominium is 30 years old and Jen is concerned about age related issues with the building like corroded post tension cables. Which document should Carrie review to confirm that there are no such issues with the building? Choose only ONE best answer. A)The Estoppel Certificate B) The Condominium Plan C) The Certificate of Insurance D) The Condominium Additional Plan Sheet

B) The Condominium Plan

Which of the following is a document that developers must provide to the buyers for phased condominiums? Choose only ONE best answer. A) Phased Development Disclosure Statement B) Phased Condominium Disclosure Statement C) Condominium Phases Disclosure Statement D) Development Phases Disclosure statement

B) Phased Condominium Disclosure Statement

What is right of Rescission? Choose only ONE best answer. A) Rescission refers to the right of buyers to cancel a purchase contract under certain terms B) Rescission refers to the right of buyers to change a purchase contract under certain terms C) Rescission refers to the right of buyers to switch to a different unit within certain time period D) Rescission refers to the right of buyers to cancel their unit title under certain terms

A) Rescission refers to the right of buyers to cancel a purchase contract under certain terms

Which of the following statements best describes the term Property? Choose only ONE best answer. A) Property refers to the physical attributes affixed to the land that are tangible, immovable, and permanent B) Property is the movable, non-permanent items that may be associated with real estate C) Property refers to the rights inherent in the ownership of a commodity D) Property refers to the land in addition to anything growing on, attached to, or erected on it

C) Property refers to the rights inherent in the ownership of a commodity

Which of the following statements best describes the term Real Estate? Choose only ONE best answer. A) Real Estate refers to the intangible attributes with the ownership of property B) Real Estate refers to unimproved land, buildings, and other fixed improvements to the land C) Real Estate refers to land and, any permanent (fixed) improvements to the land, and the property rights that go with the ownership of the land D) Real Estate refers to the items that can be removed without causing damage to the property

B) Real Estate refers to unimproved land, buildings, and other fixed improvements to the land

Which of the following are the real estate appraisal associations recognized in the Real Estate Act? 1. The Assessors Association 2. The Appraisal Institute of Canada 3. The Canadian Appraisal Institute 4. The Canadian National Association of Real Estate appraisers Choose only ONE best answer. A) Statements 1, 2 and 3 B) Statements 2, 3 and 4 C) Statements 1, 2 and 4 D) All of the above

B) Statements 2, 3 and 4

Which of the following individuals estimate the value of properties for the purpose of taxation? Choose only ONE best answer. A) Property Assessor B) Property Appraiser C) Property Tax Appraiser D) Real Estate Associate

A) Property Assessor Property assessors estimate the value of properties for the purpose of taxation. They may also be referred to as municipal assessors. As they are usually employed by the municipal government to determine the assessed value of properties located within the municipality. Assessors may also work in: •Administration •Legislation •Data Management APPRAISER = Real estate appraisal is the act of arriving at an estimated value for a property at a specified date through a logical and systematic approach.

Real estate appraisers perform which of the following services? Providing appraisals for lenders related to their real estate financing Providing appraisals for accounting, insurance, or taxation purposes Providing appraisals for assessment disputes or appeals by property owners Providing appraisals for settlement of estates or division of family property Serving as an expert appraisal witness in legal proceedings

ALL OF THE ABOVE

Which legislation governs the valuation of properties for the purpose of taxation? Choose only ONE best answer. A) The Municipal Government Act B) Municipal Assessor Regulation C) The Law of Property Act D) Real Property Act

A) The Municipal Government Act

Which of the following are types of property analysis that real estate professionals use to provide property valuation? Comparative Market Analysis Income Analysis Cost Analysis Profit Analysis

Comparative Market Analysis Income Analysis Cost Analysis

The statement “This type of analysis examines the revenues and expenses associated with the subject property to arrive at a calculation related to its estimates market value” best describes which of the following types of property analysis? Choose only ONE best answer. A) Comparative Market Analysis B) Income Analysis C) Cost Analysis D) Profit Analysis

B) Income Analysis REVENUES AND EXPENSES = INCOME

What area the different characteristics of value? Choose only ONE best answer. A) Utility, scarcity, desire, marketability, purchasing power B) Utility, scarcity, effective demand, transferability C) Durability, utility, scarcity, marketability D) Transferability, desire, purchasing power, scarcity

A) Utility, scarcity, desire, marketability, purchasing power

Which of the following are forces that influence the value of real estate? Choose only ONE best answer. A) Utility, scarcity, effective demand, transferability B) Scarcity, economic, social, effective demand C) Government, economic, social, physical D) Utility, economic, social, effective demand

C) Government, economic, social, physical FORCES AFFECTING PROPERTY VALUE •PHYSICAL •ECONOMIC •GOVERNMENT / POLITICAL •SOCIAL •PROPERTY VALUE FORCES

Amanda is a new real estate professional with Crystal Cove Realty. She is preparing to meet with her new buyer clients to show them some properties. What are the various concepts of property value that Amanda should keep in mind to help her clients find the right property? 1. Subjective value 2. Objective value 3. Value in Exchange 4. Value in Use Choose only ONE best answer. A) Statements 1, 2, and 3 B) Statements 2, 3 and 4 C) Statements 1, 2 and 4 D) All of the above

ROPERTY VALUATION •Subjective value (emotion) Subjective value may positively or negatively influence property value depending on how the benefits of owing the property are perceived by the buyer. For example, a property may sell for a comparatively high price if the seller is a well-known celebrity. •Objective value (cost of creation) Objective value, in the strict sense, refers to the direct cost of creating a commodity. In terms of real estate, objective value is the cost of the land plus the cost of creating any buildings. However, real estate appraisers provide an objective value through their impartial and independent opinion regarding property values.• Value in Exchange ($ terms) Value in exchange refers to the worth of a commodity as expressed in monetary terms. This assumes that the commodity exists in an open and competitive market so that the value received in exchange is truly representative of its worth. In real estate, value in exchange is the dollar amount exchange for the property. •Value in Use (utility) Value in use refers to the value of a commodity due to its utility to a particular individual. An individual may pay more for a property if it has a specific use than a typical buyer would be prepared to pay. This can result in the property being valued by a particular buyer for more than its true market value

Which of the following IS not A sourcea of market price data that the real estate professionals rely on to perform valuations? Listing Service Database Brokerage Database Land Titles Database Realtor database

Realtor database

What is the key criteria to be considered when determining highest and best use of a property? Choose only ONE best answer. A) Legal permissibility, physical possibility, financial feasibility, maximally productive B) Legal permissibility, marketability, financial feasibility, economic productivity C) Marketability, financial feasibility, economic productivity, scarcity D) Marketability, legal permissibility, economic productivity, scarcity

LPFM A) Legal permissibility, physical possibility, financial feasibility, maximally productive

Victor is a real estate professional with Elite Real Estate Brokerage. He is listing his client’s property for sale. The property is an older residential property currently divided into two rental suites, located in an R-1 land use designation that allows for single-family residences. What is the highest and best allowable use of the property? Choose only ONE best answer. A) Investment property B) Commercial property C) Single-family Residential property D) Multi-family residential property

C) Single-family Residential property

Maya is a real estate professional with Top Tier Realty. She is doing a valuation on a property on Hyde street. The subject property is a single-family residence on R1 zoned lot. One side of the street has single-family residences and the other side has a 3-story condominium building with parking for residents and visitors. She makes a negative adjustment to the property value. What principle of valuation is her action based on? Choose only ONE best answer. A) The principle of conformity B) The principle of substitution C) The principle of regression D) The principle of contribution

A) The principle of conformity

Rita is a real estate professional with Prestige Realty. She is doing a valuation for Tammy, who wants to sell the old home that she inherited a few years ago. A year ago, the area was rezoned to commercial zoning from residential. Rita estimates the highest and best use for the land is for a commercial development, such as an office building. Therefore, Rita does not attribute any value to the older house in preparing the property valuation. Which principle of valuation is demonstrated in this scenario? Choose only ONE best answer. A) The principle of competition B) The principle of regression C) The principle of consistent use D) The principle of anticipation

C) The principle of consistent use The Principle of Consistent Use states that when improved land is in transition to another highest and best use

Meg owns a 14-unit apartment building in West Edmonton. The building was a little run down at the time of the purchase. Meg renovated the building and was able to charge higher rents as a result. Over the last 2 years, the property has been making a tidy profit after paying all the expenses. Meg is considering selling the property as she wants to retire. John, a real estate professional with Highland Realty, provides her a valuation based on the net income produced by the property. Which principle of valuation is demonstrated in this scenario? Choose only ONE best answer. A) The principle of external factors B) The principle of surplus productivity C) The principle of consistent use D) The principle of conformity

B) The principle of surplus productivity

Which of the following are the steps in the appraisal process? Do a preliminary inspection and plan the work Define the problem Collect and Analyze Data Decide on the approach to use Reconcile Final Value Estimate Write Appraisal Report

All of the above

Which of the following are the different approaches used by appraisers for property valuation? The Direct Comparison Report The Income Approach The Cost Approach Revenue approach Choose only ONE best answer. A) Statements 1, 2, and 3 B) Statements 2, 3 and 4 C) Statements 1, 3 and 4 D) All of the above

A) Statements 1, 2, and 3 NOT REVENUE

Which of the following are the different types of appraisal reports for property valuation? (choose three) 1. Letter of Opinion 2. Estimate Report 3. Form Report 4. Narrative Report

1. Letter of Opinion 2. Form Report 3. Narrative Report estimate report is NOT

Which of the following approach is used for revenue generating properties? Choose only ONE best answer. A) The Direct Comparison Report B) The Income Approach C) The Cost Approach D) Comparative Market Analysis approach

B) The Income Approach

Which of the following statements best describes what is being referred by: “The basic test is whether or not the comparable could be equivalent to the subject property in the mind of the typical buyer, subject to some adjustments?” A) The rationale for the Principle of Contribution B) The process for making adjustments to comparable properties C) The rationale for the Principle of Substitution D) The guideline for selecting appropriate comparable properties

D) The guideline for selecting appropriate comparable properties

Brian Trudeau is a real estate professional helping his client Perry Michaels buy a detached property. During his conversation with Perry, Brian learns that Perry has not been preapproved for a mortgage. Since this is Perry’s first property, Brian helps him fill out the mortgage application and provides him the blueprints for the property that Perry is interested in purchasing? Based on this, which of the following statements is correct? 1. Brian is required to be authorized as a mortgage broker in order to fill out the mortgage application 2. Brian is required to be authorized as a property manager in order to provide the blueprints for the property 3. Brian can fill out the mortgage application as Perry is his client 4. Brian can provide the blueprints as Perry is his client Choose only ONE best answer. A) Statements 1 and 3 B) Statements 3 and 4 C) Statements 1 and 4 D) Statements 1 and 2

C) Statements 1 and 4 Can NOT provide mortgage application as he is not a mortgage broker however he can provide client with blueprints

Which of the following parties do not need authorization from RECA in order to be authorized to deal in mortgages? An employee of a bank or credit union providing mortgages on their behalf An employee of a person dealing in mortgages on the principal’s behalf A person providing mortgages on their own behalf using their funds A real estate professional referring clients to a preferred bank Choose only ONE best answer. A) Statements 1, 2 and 3 B) Statements 2, 3 and 4 C) Statements 1, 2 and 4 D) All of the above

A) Statements 1, 2 and 3

According to the Rules, all mortgage professionals must disclose in writing which of the following information? The nature of their relationship with the borrower. The nature of their relationship with the lender. The nature of their relationship with the real estate professional How the brokerage will be compensated

ALL OF THE ABOVE

Which of the following are types of mortgage fraud? Fraud for housing Fraud for investment Fraud for profit Fraud for title

FRAUD FOR HOUSING AND PROFIT Fraud for Housing = Less sophisticated form of fraud than fraud for profit. Focused on a single property. Fraud for profit is often a larger scale operation, cross-section of multiple properties.

Amber and David are very excited about a real estate development project put together by Integrity Brothers Development Ltd. They are promised high returns on a downtown condo which the developer will not only build but also rent out and manage for them. Since the projected has not started yet, they can acquire the investment condo at a discount. For an entire year they get consistent payments on the money they invested. Then they hear that the developers have declared bankruptcy and closed their offices. What type of mortgage fraud is demonstrated in this scenario? Choose only ONE best answer. A) Bankruptcy fraud B) Buyer Financing Scheme C) Private Financing Scheme D) Debt Consolidation Scheme

C) Private Financing Scheme Private Financing SchemeThe mortgage financing is raised by “private offerings.” These offers, investors are promised high returns on real estate properties or some type of real estate projects. These schemes may involve new real estate projects to be developed or the refurbishment of older real estate projects acquired at attractive prices.

Law of Property Act was amended in 2004.

jack and Maria Forleo are a retired couple enjoying their golden years. Jack likes to go golfing and Maria enjoys gardening. Since they were prudent with money and have paid off their mortgage and saved for their retirement, they are able to indulge in overseas trips to visit their daughters who live in Australia and live a comfortable life. Last month when they returned from their trip to Australia, they noticed that they had received several letters from the lender showing that they had defaulted on their mortgage and needed to pay the amount in arrears immediately. What type of mortgage fraud is demonstrated in this scenario? Choose only ONE best answer. A) Title fraud B) Buyer Financing Scheme C) Equity Access Scheme D) Debt Consolidation Scheme

A) Title fraud Title Fraud Title fraud involves the transfer of property from the legitimate owner(s) to the fraudster. Higher value properties with no existing mortgage on title tend to be he preferred target for title theft. The owner’s identity or order to place a large mortgage on the property or to sell the property.

Jason and Jen Cole are a newly married couple who are very excited about purchasing a new home in a small town and starting their life journey together. They had a fabulous dream wedding which was a little on the expensive side but well worth the price. Unfortunately, that leaves them a little short on funds for the down payment. Since Jen’s heart is really set on the cute house that she believes is perfect for them, Jason decides to borrow $20,000 from his friend, Dell. They both have good jobs so they’re confident they’ll be able to save the money to pay back Dell as well afford the mortgage payments. With the money in their account, they’re able to qualify for the mortgage and move into their new house. What type of mortgage fraud is demonstrated in this scenario? A) false deposit B) Buyer Financing Scheme C) Equity Access Scheme D) Debt Consolidation Scheme

A) false deposit False Deposit False statement causing a lender to make a lending decision that would not have otherwise occurred is conduct leading to mortgage fraud. False statements, false deposits, or false employee records. For example, the borrower secures money as a deposit for the purchase of a property that is not their money and must be paid back to a third party. However, the borrower makes a false statement or declaration by representing the deposit money as their own funds and neglecting to report that the deposit is actually from funds owed to another person.

In this type of a mortgage fraud scheme the fraudsters convert an apartment building into condominium units or renovate an older condominium complex through extensive upgrading of the individual units. The fraudsters secure an inflated real estate appraisal on the initial condo unit. Then a false real estate purchase contract and inflated real estate appraisal on the initial unit are used to inflate the value of the remaining units in the condo complex. The sale price on the purchase contract is significantly above the market value. What type of mortgage fraud is demonstrated in this scenario? Choose only ONE best answer. A) Secret Second B) Inflated Real Estate Appraisal C) Air Loan D) Redevelopment Fraud

D) Redevelopment Fraud Re-development Scheme The re-development scheme may involve the conversion of an apartment building into condominium units or the upgrading of an older condominium complex through extensive upgrading of the individual units. The fraudster secures an inflated real estate appraisal on the initial condo unit. A straw buyer is often involved in securing a high ratio mortgage on the sale which may or may not have undergone any of the promised renovations. The false real estate purchase contract and inflated real estate appraisal on the initial unit are used to inflate the value of the balance of units in the condo complex. Sales price being significantly above their market value.

Caleb McKoy is a real estate appraiser with CML appraisers. He has been asked to provide an appraisal on a single family detached property in an established neighborhood. When Caleb arrives on site, the seller provides him copies of an older appraisal with higher values and pressurizes Caleb to use these values. What type of mortgage fraud is demonstrated in this scenario? Choose only ONE best answer. A) Equity Access Scheme B) Inflated Real Estate Appraisal C) Buyer Financing Scheme D) Property flip loan

B) Inflated Real Estate Appraisal Inflated Real Estate Appraisal Value, size, or degree of upgrading in order for the borrower to obtain a larger mortgage. Physical site appraisal or an automated electronic appraisal. Automated valuation systems are electronically generated property appraisals that rely on an extensive database of property information and sales data in order to provide an automated appraisal value for any property and a generalized value for any area. Property value is in line with the values of comparable properties within that community. CMHC uses electronic appraisal system called emili®

What is a straw buyer? Choose only ONE best answer. A) An individual who sells their personal and credit information for fraudulent purposes B) An individual who acquires a loan under someone else’s name C) An individual who falsifies their income or debt in order secure mortgage financing D) An individual who offers to hold mortgage in another person’s name

A) An individual who sells their personal and credit information for fraudulent purposes

Pam Anderson is a real estate professional with Prime Brokerage. She is helping her clients, Carlie and Dylan, buy their first home. Pam finds out that her clients are a little short on funds for the down payment. Pam really wants to close the deal as she’s in the lead to win a trip to Hawaii from her brokerage. Pam agrees to lend Carlie and Dylan money for the down payment. Once the deal closes, Pam registers the loan against the title of their property. What type of mortgage fraud is demonstrated in this scenario? Choose only ONE best answer. A) Title fraud B) Buyer Financing Scheme C) Equity Access Scheme D) Secret Second

D) Secret Second Secret second refers to a second mortgage on the property that is kept secret from the first mortgagee and does not have enough cash to meet the spread and the down payment. Someone, such as the real estate professional wanting to close the transaction, agrees to advance the required funds and to register a second mortgage as collateral for the loan, but not until after the title of the property transfers to the buyer. The buyer fraudulently presents these funds as the deposit to the lender. The mortgage they would not have qualified for otherwise. The first mortgage lender typically requests to be notified regarding the existence of any other mortgage lender to ever be aware of the existence of a secret second.

What type of mortgage fraud scheme involves two or more real estate purchase contracts written for the same transaction on the same property with only one purchase contract being valid? The buyer then provides the false purchase contract to the lender and gets a larger loan than they would normally been able to get on that property. Choose only ONE best answer. A) Contract Kiting B) Property flip C) Straw buyer D) Title fraud

A) Contract Kiting

Which legislation is responsible has to do with detecting and deterring money laundering and terrorist financing activities? Choose only ONE best answer. A) PCMLTFA B) FINTRAC C) The Real Estate Act D) The Real Property Act

A) PCMLTFA Proceeds of Crime, Money Laundering and Terrorist Financing Act

A contract is defined as “a binding agreement, enforceable in the courts, made between two or more persons, competent at law to enter into such agreement, for consideration or value, to do or refrain from doing some lawful and genuinely intended act.” According to this definition, which of the following statements is correct? A) Contracts for the sale or purchase of real property are not enforceable B) Contracts do not have to be in writing to be enforceable C) Contracts cannot be enforced between a married couple D) Contracts must be registered on title to be enforceable

B ? but mayeb not

Morgan agrees to buy a property from Jeff. On closing day, Morgan’s lawyer transfers the funds to Jeff and Morgan is registered as the property owner on the title. Which term describes the state of this contract? A) Enforceable B) Breached C) Discharged

C) Discharged

Which of the following types of contract would a real estate professional sign 1. Brokerage employment contract 2. Written service agreement 3. Purchase contract 4. Lease agreement

1. Brokerage employment contract 2. Written service agreement

In AB, commercial leases are governed by which legislation? A) The residential tenancies act B) The commercial tenancies act C) Common law D) The real estate act

C) Common law

Which of the following statements is correct regarding breach of contract? A) The damages are the amount suffered plus an amount to punish the party that breached B) The injured party must actually have suffered damages as a result of the breach of contract C) The party guilty of the breach must take all reasonable steps to mitigate the damages D) All of these statements are correct

B) The injured party must actually have suffered damages as a result of the breach of contract

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) It should be considered legal advice to real estate professionals