LESSON 1 - Preface Intro to Real Estate

Question 1

List the three caveats to their rights that fee simple owners are subject to

Answer 1

1. the Crown’s right of expropriation and tax sale
2. the Crown’s land use and building regulations
3. other individuals’ common law rights

Question 2

T/F?

Absolute ownership of Land exists in Canada

Answer 2

False

Question 3

How is value attached to Land?

Answer 3

• demand for space, shelter and support of actitivites
• willingness to pay
• capitalized value

Question 4

define capitalized value

Answer 4

Assessment of the value of an asset, based on the total income expected to be realized over its economic life span.

Question 5

A ___________ is a person who is licensed under a provincial statute, to provide real estate services, to or on behalf of another, for or in expectation of remuneration

Answer 5

real estate representative

Question 6

What are some of the tasks required of a real estate representative in regards to the purchase of real estate

Answer 6

Listing property for sale, conducting open houses, finding properties for clients, negotiating prices for the property, drafting contracts of purchase and sale, presenting offers and receiving deposits of money

Question 7

Do real estate licensees sell interests in land?

Answer 7

No, they sell services to people who want to sell or buy interests in land.

Question 8

A _________ determines the market value of a property based on its condition and the selling price of comparable properties that recently sold in the area.

Answer 8

real estate appraiser

Question 9

What participant in the real estate market ensures the property value is assessed appropriately to the mortgage loan

Answer 9

Appraiser

Question 10

A _______________ will conduct a comprehensive visual examination of a property’s overall structure, major systems, and components and provide a written report.

Answer 10

home and property inspector

Question 11

What does a surveyor do?

Answer 11

determine the boundaries and other features of land in order to accurately describe what is owned on paper

Question 12

What are the two key tasks a Real property assessor does

Answer 12

• determines the actual value of the assessed properties
• assigns each property to a property class

Question 13

List the three Mortgage insurers in Canada

Answer 13

1. Canada Mortgage and Housing Corporation(CMHC)
2. Genworth Financial
3. Canada Guaranty

Question 14

What are the 4 significant characteristics of improved land?

Answer 14

1. Immobility
2. the durability of its improvements
3. the invisibility of the services it provides
4. divisibility of ownership it allows

Question 15

___________ in respondible for the local nature of real property markets

Answer 15

Immobility

Question 16

The immobility of real property means that land is subject to ___________, which are enjoyed or suffered by people other than those who produce them.

Answer 16

Externalities

Question 17

The durability of Improved Land

Answer 17

2nd important characteristic of real estate is the indestructibility of space and the durability of structures.

Question 18

Indivisibility of Services

Answer 18

Value of parcel of real estate depends on usefulness - based on land and improvements

Question 19

Divisibility of Ownership

Answer 19

ownership of land can be divisible both physically and legally

Question 20

There are two aspects to the organization of the real estate brokerage industry in BC, what are they?

Answer 20

1. The organizational structure created by the statutory regulation of the industry
2. the voluntary structure created by the variety of professional organizations that exist to fulfil objectives not addressed by government regulation

Question 21

All statutory laws relating directly to land and the licensing of real estate brokerage personel are ______________

Answer 21

provincial

Question 22

How many people are on the Real Estate Council?

Answer 22

16

Question 23

How does one get to be on the Real Estate Council?

Answer 23

appointment by the Lieutenant Governor in Council

Question 24

How does the Real Estate Services Act protect the public

Answer 24

• licensing agents
• mandatory insurance

Question 25

BCREA

Answer 25

British Columbia Real Estate Association

Question 26

REIBC

Answer 26

Real Estate Institute of British Columbia

Question 27

The _______ & \_\_\_\_\_\_\_\_\_, who are responsible for the licensing of real estate service providers and the general protection of the public

Answer 27

Superintendent of Real Estate Real Estate Council

Question 28

The ___________ was created and charged with insuring licensees against liability for errors and omissions made during the course of their professional duties

Answer 28

Real Estate Errors and Omissions Insurance

Question 29

The ___________ which promotes continuing education of its member real estate boards and the advancement of causes important to its members

Answer 29

BC Real Estate Association (BCREA)

Question 30

What is the Real Estate Foundations mission

Answer 30

Is to use its resources for the benefit of British Columbians by supporting efforts that improve all aspects of land use and real estate practices.

Question 31

How many people are on the Real Estate Foundation?

Answer 31

5 appointed members

Question 32

The Board of Governors for the Real Estate Foundation have been appointed by whom?

Answer 32

BCREA = 1 RECBC = 1 REIBC = 1 Minister of Finance = 2

Question 33

The ____________ is a national organization comprised of licensees and real estate boards across the country

Answer 33

Canadian Real Estate Association (CREA)

Question 34

What is CREA's primary mission?

Answer 34

To represent its members at the federal level of government and to act as a watchdog on national legislation pertaining to the real estate industry.

Question 35

How does the CREA meet its objectives?

Answer 35

CREA developed its Code of Ethics and Standards of Business Practice to which all Realtors in Canada must adhere to a standard of practice that the public may reasonably expect