Practice Test 3 Flashcards
he Real Estate Act requires self-regulation of the real estate industry. Self-regulation means that the government, in this case the province of Alberta, allows those within the industry to use their specialized knowledge to regulate the industry.
True or False: In practice, this means Investigation and disciplinary action for real estate professionals is managed by RECA.
True
False
True
Which of the following licences are governed by RECA? (Select ALL that apply)
Commercial driver’s licence
Commercial Landlord
Mortgage associate
Mortgage broker
Property Manager
Real estate associate
Real estate broker
Residential Landlord
Mortgage associate
Mortgage broker
Property Manager
Real estate associate
Real estate broker
Chrissy and Jennie are arguing about what their real estate agent should be doing for them. Chrissy thinks that the real estate professional can only offer services in buying, selling, or leasing real estate, and Jennie believes that the real estate agent, while helpful, just directs the actual buying and selling and leasing to the brokerage… and that the real estate agent’s primary role is to offer advice about the process. Who is correct? (Select the BEST answer)
Chrissy is correct, a licensed professional is only authorized to provide services related to buying, selling, or leasing real estate. Offering advice is likely to result in legal problems later, if the client acts on the good faith advice of the agent.
Jennie is correct, the real estate agent is only authorized to provide good faith advice, and must direct the client to a licensed professional at a brokerage for services related to buying, selling, or leasing real estate.
Chrissy and Jennie are both correct a real estate agent, as a licensed real estate professional, is authorized to provide both advice and services related to buying, selling, or leasing real estate.
Neither Chrissy nor Jennie is correct, as a real estate agent is just someone who shows homes. They need to contact a licensed real estate professional (broker, associate broker, or associate) to get advice and services.
Chrissy and Jennie are both correct a real estate agent, as a licensed real estate professional, is authorized to provide both advice and services related to buying, selling, or leasing real estate.
When RECA receives a complaint regarding professional conduct, which of the following is NOT a part of the investigation process? (Select one)
Gather information from the complainant
Notify the complainant, broker, and the licensee that the investigation is underway
Gather relevant information
Make public (publish) the gathered information
Information presented to Registrar to make a decision
When appropriate the Registrar may refer the matter to a Hearing Panel, who will make a decision after hearing all statements and evidence
Notify all parties of the outcome of the investigation
Make public (publish) the gathered information
Which of the following can assist you in the request to obtain a Certified Criminal Record Check (CCRC)? (Select ALL that apply)
A private, accredited fingerprint agency
Pawn shops
Your local police service
Your local post office
Your local public library
A private, accredited fingerprint agency
Your local police service
There are two ways for real estate professionals to connect with a brokerage: as an employee or an independent contractor.
Which of the two methods is under the direction and control of the brokerage representing the employer in all business dealings? (Select one)
Employee
Independent Contractor
Both Employee and Independent Contractor
None of the above
Employee
Economists believe that in a market economy, things are always moving toward equilibrium. That is the point where the forces of supply and demand are relatively equal and where the market is performing most efficiently. Which of the following market forces occurs when Demand increases if the current price is lower than the equilibrium price occurring from an increase in demand, decrease in supply, and/or government intervention? (Select one)
Market Shortage
Market surplus
Movement in the market
Quantity
Market Shortage
True or False: The Real Estate Act requires that licensees cooperate and provide documents or other information as requested by RECA during an investigation.
True
False
True
Specialization allows property management brokerages to concentrate on managing a sector of properties needing their services. Which specialization includes mixed-use buildings, shopping centres, strip malls, gas stations, and repair shops? (Select one)
Agri-business property management
Commercial property management
Industrial property management
Residential property management
Retail property management
Commercial property management
Which of the following indicator classifications will often change prior to large economic adjustments, which makes them useful in predicting future trends. (Select one)
Chronology Indicator
Coincident Indicator
Fraternal Indicator
Lagging Indicator
Leading Indicator
Leading Indicator
True or False: RECA automatically suspends a license during an investigation.
True
False
False
Which of the following are characteristics of a “real estate bubble?” (Select ALL that apply)
Excessive buyer confidence convinces buyers that they will be able to sell at a higher price in the future.
Prices are driven up by an increase in demand with a limited supply.
Prices are equivalent or lower than they are at a “trough” period of the real estate cycle.
Spurred on by emotional buying and the feeling of scarcity.
The price of housing rises at a rapid and unsustainable pace.
Excessive buyer confidence convinces buyers that they will be able to sell at a higher price in the future.
Prices are driven up by an increase in demand with a limited supply.
Spurred on by emotional buying and the feeling of scarcity.
The price of housing rises at a rapid and unsustainable pace.
True or False: The Trust fund can be used for both maintenance of trust funds (from sellers or buyers), and payment of brokerage expenses and commissions.
True
False
False
The range of property types that can be considered as part of commercial real estate is broad and include three groups: Industry, Business, and Investment. Review each of the following items, and select the ones that belong to the industry group. (Select ALL that apply)
Business brokerage
Integrated office space
Manufacturing
Office space
Retail facilities
Warehousing
Yard storage
Business brokerage
Integrated office space
Manufacturing
Office space
Retail facilities
Warehousing
Yard storage
Which of the following must be reported to the Registrar by the licensee? (Select ALL that apply)
Has a court judgement in relation to providing goods or services to the public.
Has a name change
Has been convicted of a traffic offence
Has filed for divorce.
Has moved residences.
Is disciplined by any real estate board, professional or regulatory body, etc.
Is subject to bankruptcy proceedings or has a business under bankruptcy proceedings.
Has a court judgement in relation to providing goods or services to the public.
Has a name change
Is disciplined by any real estate board, professional or regulatory body, etc.
Is subject to bankruptcy proceedings or has a business under bankruptcy proceedings.
Review the following statements and determine which of them is NOT a required written disclosure statement real estate professionals are required to make to clients. (Select one)
Any conflict of interest that may exist.
Any facts that may be likely to influence the person’s decision (including fees or commissions received).
The nature of the services the licensee will provide.
The storage location and medium where the brokerage stores documents.
Whether the licensee is acting in the trade or anticipated trade on behalf of another person, in any capacity.
The storage location and medium where the brokerage stores documents.
What type of remedy for the innocent party in a breach of contract results in a forfeit of the deposit in the agreement signed by both parties. (Select one)
Contractual.
Equitable.
Impartial
Jurisprudence
Legal
Pledged
Contractual.
Anna is a real estate professional who is approached by a newlywed couple looking to get into their first home. Because the wife’s job is likely to move locations to another province in about a year, they only want to live there until that time, and then rent it out. What type of ownership option should they investigate?
Fee Simple
Leasehold
Life estate
Fee Simple
Theodore is living in the same home he’s been in since 1980. He has been told that the property is his as long as he wishes to live there, but he does not have the right to sell it. Upon his death, the property ownership will revert to his nephew. Which of the following owner-type is Theodore? (Select one)
Fee Simple
Leasehold
Life estate
Life estate
Nelly and Grace are selling a small retail shop in a commercial condo they own. They have signed on with Boutique Brokerage with the commercial real estate professional Henrietta to sell the property. Knowing that commercial deals can take a while, Nelly and Grace sign a written service agreement that lasts six months. During the first three months, the brokerage actively advertises the property, shows it to many potential buyers and has a total of four different offers just shy of their asking price, which Nelly and Grace decline.
In the fourth month, they have a commercial investor come directly to the shop itself and inquire about the “For Sale” sign in the window. The investor is very interested in the property but not the business, so he discusses leasing the property back to Nelly and Grace for a period of time, to allow them to finalize or move their business. He comes back the next week and makes a full price verbal offer with very favorable terms on the future lease.
Nelly and Grace have not told Henrietta about the offer. They are considering asking the investor to wait a couple of months, which is when the contract with Greatness Brokerage is finished and they are free of having to pay Henrietta any commissions.
True or False: Because it is only a verbal offer, Nelly and Grace have no obligation to tell Henrietta about the inquiry and offer on the property.
TRUE
FALSE
FALSE
Self-regulation in the industry means that industry professionals have an obligation to monitor and report issues that are found. Reporting these issues to your broker and, when necessary, to RECA can help protect the industry. Issues can include, but are not limited to which of the following? (Select ALL that apply)
Dishonest transactions, language, or dealings.
Fraudulent actions by licensees.
Individuals acting as licensees without a licence.
Documenting written service agreements (WSAs)
Creating brokerage policies and procedures.
Dishonest transactions, language, or dealings.
Fraudulent actions by licensees.
Individuals acting as licensees without a licence.
Consumers are more likely to trust real estate professionals who show confidence in themselves and what they are selling. You can build this type of confidence by increasing your knowledge on the different types of real estate and services you offer. From the following list, select all those that can contribute to your knowledge about your chosen area of practice. (Select ALL that apply)
Asking questions of those with more experience, or experts in the areas and subjects about which you want to learn more.
Familiarizing yourself with various floor plans, zoning documents, and neighborhood information.
Feedback from past clients.
Engagement in online industry forums.
Paying attention to the pre-licensing training, and re-certification training each year.
Sales training programs.
Visits to show homes or open houses to thoroughly know the product
Your fellow licensees or team members.
Asking questions of those with more experience, or experts in the areas and subjects about which you want to learn more.
Familiarizing yourself with various floor plans, zoning documents, and neighborhood information.
Feedback from past clients.
Engagement in online industry forums.
Paying attention to the pre-licensing training, and re-certification training each year.
Sales training programs.
Visits to show homes or open houses to thoroughly know the product
Your fellow licensees or team members.
Real estate purchase contracts are legally binding documents between a buyer and a seller with built-in remedies for failure to meet any of their stated terms. For this reason, compensation for any damages resulting from the unexpected collapse of a real estate transaction may be pursued through civil litigation. These claims include which of the following? (Select ALL that apply)
Claim of costs associated to restore title or regain possession.
Full brokerage compensation during the time of contract.
Legal claims on deposits.
Monetary provable damages.
Payment of reasonable costs to pursue legal redress.
Claim of costs associated to restore title or regain possession.
Legal claims on deposits.
Monetary provable damages.
Payment of reasonable costs to pursue legal redress.
Carol and Anoop each work with Laura, an associate at Lakeview Brokerage. Carol is a buyer, and Anoop is a seller. Laura agreed to represent both of them at different times in the last month. As Carol is looking at properties, Anoop’s property happens to fit her criteria. Carol asks if Laura will make an offer on the property. Laura informs both Carol and Anoop of the conflict of interest and offers to act in a capacity that allows her to facilitate only, and not act as sole agent to either party. With Carol’s and Anoop’s permission what capacity is Laura offering to act in? (Select one)
Common Law Brokerage.
Contract Negotiator.
Mortgage Brokerage.
Team lead.
Transaction Brokerage.
Translation Brokerage.
Transaction Brokerage.
In Alberta, if a person dies and they are the only person on the residential property title, it is possible for the spouse to have a “life estate interest” in the property. Dower interest means they have a legal right to the property as the spouse of the title holder. There are three conditions which ALL must be met for dower rights to apply. Which of the following conditions are requirements? (Select THREE)
There is only one name on the property title.
The person on the property title is legally married (there is no divorce or common law marriage).
The last Will and Testament, commonly known as the “Will”, does not designate another party as being an heir to the property.
Either of the legally married parties have spent at least one night sleeping in the home, either as a couple or as individuals.
There is only one name on the property title.
The person on the property title is legally married (there is no divorce or common law marriage).
Either of the legally married parties have spent at least one night sleeping in the home, either as a couple or as individuals.
When an agency relationship is terminated, the licensee still has obligations to the client. Which of the following statements are TRUE? (Select ALL that apply)
The agent’s and the client’s rights under the agreement are not affected.
The brokerage’s duty to keep client information confidential continues even after a written service agreement ends.
The brokerage must continue to act with fiduciary responsibility for the client, following the service agreement termination.
A client may not purchase a property without first consulting with the agent.
A client may not sell a property without first consulting with the agent.
The agent’s and the client’s rights under the agreement are not affected.
The brokerage’s duty to keep client information confidential continues even after a written service agreement ends.
Floyd and Katherine are now empty nesters. They are looking to sell their large 5-bedroom home on a cul-de-sac and find a medium-sized property that has a primary bedroom in the basement. While they are looking for a smaller property, they aren’t necessarily looking for a cheaper one. They want all the modern amenities and upgrades available in higher end properties.
From the following list below, match the above description with the type of client. (Select one)
First-time buyer/seller.
Move-up buyer/seller.
Move-down buyer/seller.
Investment buyer/seller.
Elderly property owner.
Move-down buyer/seller.
Audrey purchased her first home in a small newly built subdivision. She owns all the property and common law rights to it except mines and mineral rights. Which one of the following ownership type is Audrey? (Select one)
Fee Simple
Leasehold
Life estate
Fee Simple
What type of remedy, for the innocent party in a breach of contract, results in compensation for non-monetary losses, including things like pain and suffering and emotional damage. (Select one)
Contractual.
Equitable.
Impartial
Jurisprudence
Legal
Pledged
Legal
RECA’s Customer Acknowledgement form describes the role of the real estate professional as (2.1.a), “we have no agency obligations to you, especially fiduciary ones. In a fiduciary relationship, you rely on someone to act in your best interests.”
True or False: “Have no agency obligation” means a real estate professional has no obligation to disclose information to a customer, including fees, commissions, and information that is not in the real estate professional’s client’s best interest.
TRUE
FALSE
True
What is the purpose of information barriers for brokerages that practice designated agency? (Select ALL that apply)
Access to client information is available to all other agents.
Agency and fiduciary responsibilities are held by the brokerage.
Brokerage liability removed for agent actions.
Ensures client confidentiality between agents of the same brokerage.
Prevents the listing agent from seeing the client’s personal information.
Eliminates conflict of interest between agents of the same brokerage (i.e., one agent represents a buyer, another represents a seller) because there is no deemed knowledge transfer about the clients
Ensures client confidentiality between agents of the same brokerage.
Eliminates conflict of interest between agents of the same brokerage (i.e., one agent represents a buyer, another represents a seller) because there is no deemed knowledge transfer about the clients
A real estate licensee is required to have the professional skill and capacity to know and address certain issues in a transaction before they arise. This is considered a “standard of care.” Therefore, real estate professionals should not wait for clients to ask specific questions or request specific services if they already know what would be required to prevent harm to client interests.
The standard of care to which real estate professionals are held includes informing the client of what? (Select ALL that apply)
Things they do not know to ask about.
The possible consequences of their lawful instructions to you.
The potential results of any decisions made.
Any costs to the trade that they may not have anticipated.
Things they do not know to ask about.
The possible consequences of their lawful instructions to you.
The potential results of any decisions made.
Any costs to the trade that they may not have anticipated.
Bart has secured land from the Crown in a residential area in a national park. He owns many structures on the land, but the property is his only for a fixed period of time. Which of the following owner-type is Bart? (Select one)
Fee Simple
Leasehold
Life estate
Leasehold
True or False: Any instruction provided by the client in an agency relationship is protected. Even if unlawful, the licensee may not inform the local authorities.
TRUE
FALSE
FALSE
Clark is living in Manitoba currently, but will be moving to Alberta as soon as he secures a home to live in. He will be paying in cash for the home (no mortgage). It is currently a “seller’s market” and properties are going fast. Clark has employed you to look into several properties he has found on the MLS®. You look at the properties and all of them have serious problems. In fact, Clark’s “favourite” home has a roof leak that is so serious it has caused flooding inside. While the current owner tells you it is now patched and “works fine,” you have doubts about the condition of the roof. You share these doubts with Clark via email and he tells you that he wants you to make a cash offer on the home immediately, and to notify the seller that he is waiving the condition to have a home inspection. You pick up the phone and call Clark. You again advise Clark that you think this is a bad idea, and provide reasons why. He thanks you, but insists that he wants you to make the offer.
Which of the following General Obligations represents why you will submit the offer on Clark’s behalf, even though you disagree? (Select one)
Act honestly.
Act in person.
Disclose information.
Exercise care and skill.
Maintain confidentiality.
Negotiate favourable terms.
Obey lawful instructions
Obey lawful instructions
What is the primary way RECA interfaces with the licensees to protect and promote public confidence in the industry? (Select one)
Brokerage conferences hosted by RECA.
RECA investigations.
RECA mandated pre-licensing training courses.
RECA newsletters.
RECA investigations.
A seller or buyer customer is an individual who has elected not to be represented by an agent in a transaction but instead represents themselves. If you represent the seller in an agency relationship, and the buyer is unrepresented (a customer), what should you discuss with the seller? (Select ALL that apply)
That you must act in the best interest of the customer.
That you must share all information given to you by the customer, with the seller, even if it is confidential (unless it were received while acting as the customer’s agent).
That you will not give the customer information or advice that is not in the seller’s best interests.
That you will use your judgement on the customer’s behalf and give them advice.
That you must share all information given to you by the customer, with the seller, even if it is confidential (unless it were received while acting as the customer’s agent).
That you will not give the customer information or advice that is not in the seller’s best interests.
There are a number of situations in which a brokerage must notify the Registrar, as set out in the Real Estate Act Rules. From the following list, select those that trigger the need for a brokerage to immediately notify the Registrar in writing. (Select ALL that apply)
Any circumstance where the broker is no longer able to perform the duties and responsibilities of a broker outlined in these Rules.
The termination or resignation of any associate who is registered with the brokerage.
The closing of a trust account.
A change in the address of the brokerage’s registered business office.
A change in location at which the brokerage maintains a trust account.
A change in clients if the brokerage is a partnership.
A change in the directors, officers or shareholders of a corporation if the brokerage is a corporation.
A change/amendment to the brokerage’s fiscal year reporting timing (as long as it does not result in a reporting period of greater than 12 months).
Any circumstance where the broker is no longer able to perform the duties and responsibilities of a broker outlined in these Rules.
The closing of a trust account.
A change in the address of the brokerage’s registered business office.
A change in location at which the brokerage maintains a trust account.
A change in the directors, officers or shareholders of a corporation if the brokerage is a corporation.
A change/amendment to the brokerage’s fiscal year reporting timing (as long as it does not result in a reporting period of greater than 12 months).
True or False: In a common law brokerage, the agency relationship is between the brokerage and the client.
TRUE
FALSE
True
There are multiple types of authority in representation relationships. In this type of authority, a perfectly competent owner delegates signing authority with a notarized legal document to another person when they are unavailable, such as if they are travelling abroad and difficult to reach. (Select one)
Assignee.
Assignor.
Dower.
Executor.
Power of Attorney.
Probate.
Trustee.
Power of Attorney.
From the following list of obligations in common written service agreements, select all those that are licensee obligations. (Select ALL that apply)
Communicating and cooperating with the agent and brokerage.
Discussing with the agent any specific information they want about a property.
Giving the agent or brokerage copies of any offers, of which they are not aware that the client makes or receives for properties that match the search criteria, unless they sign a Buyer Representation Agreement with another brokerage that begins after their agreement ends.
Help a client prepare and comply with a contract to sell the property.
Help a client negotiate favourable terms and conditions with a buyer.
Keep a client informed of the agent’s marketing activities and any resulting transaction.
Market the property until the property is sold under the agreement, or the agreement ends.
Present all offers and counteroffers to and from a client, even when a client has accepted a purchase contract.
Telling the agent about inquiries the client makes or receives about purchases that affect their agreement.
The agent must keep the client informed during the search and any resulting transaction.
Help a client prepare and comply with a contract to sell the property.
Help a client negotiate favourable terms and conditions with a buyer.
Keep a client informed of the agent’s marketing activities and any resulting transaction.
Market the property until the property is sold under the agreement, or the agreement ends.
Present all offers and counteroffers to and from a client, even when a client has accepted a purchase contract.
The agent must keep the client informed during the search and any resulting transaction.
True or False: Real estate professionals have a fiduciary obligation to customers.
TRUE
FALSE
False
No licensee may participate in any unlawful activities, at any time, for any reason.
Which of the following actions are options to deal with unlawful client instructions? (Select ALL that apply)
The agent should decline in writing to follow the instruction and clearly outline the reasons for their refusal.
The agent should follow the client’s instructions. Even when unlawful, an agent has a fiduciary responsibility to the client to follow all instructions.
The agent should immediately speak with their broker to confirm the validity of the request.
The brokerage may take steps to terminate the agency relationship in order to preserve the agent and brokerage’s reputation.
The agent should decline in writing to follow the instruction and clearly outline the reasons for their refusal.
The agent should immediately speak with their broker to confirm the validity of the request.
The brokerage may take steps to terminate the agency relationship in order to preserve the agent and brokerage’s reputation.
Jeffrey is looking into hiring a real estate professional to sell several of his properties. Jeffrey is a very private person, and really doesn’t like anyone learning about his personal information. He works very hard to keep his “digital footprint” at near zero. He understands he’ll have to provide some information to sell his properties, but wants to keep the distribution of his information to an absolute minimum, preferably, with just one person.
Which type of agency contract allows Jeffrey to have a single real estate professional act as his agent, with protections in place to prevent his personal information from being accessed by other agents at the brokerage? (Select one)
Common law agency relationship.
Customer relationship.
Designated agency relationship.
Designated customer relationship.
De facto agency relationship.
Designated agency relationship.
What are the ways that licensees protect and promote public confidence in the industry? (Select ALL that apply)
Acting with professionalism.
Behaving ethically.
Consistently working with clients to meet their needs and close transactions.
Donating a portion of your commissions to RECA’s public campaign for advertising top brokerages.
Follow the policies and procedures provided by the brokerage with whom the licence holder is associated.
Follow the requirements and responsibilities for licensees, as found in the Real Estate Act Rules.
Funding AREF with personal contributions.
Acting with professionalism.
Behaving ethically.
Consistently working with clients to meet their needs and close transactions.
Follow the policies and procedures provided by the brokerage with whom the licence holder is associated.
Follow the requirements and responsibilities for licensees, as found in the Real Estate Act Rules.
Which permit type is needed to confirm that buildings comply with applicable building codes? (Select one)
Building permit.
Code permit.
Construction permit.
Development permit.
Building permit.
Ursula and her husband Barney are selling their parents’ old property. The old garage has been torn down, but the old house is still standing and is NOT undergoing renovations prior to the sale. During the property inspection, the garage area’s dirt is inspected and found to have a significant amount of grease and oil. Barney notes to the inspector, “oh, that’s just where Dad used to dump all the oil from the cars he worked on. He probably just didn’t dig the hole deep enough that time.”
The property inspector moves to the house and finds the attic is filled with asbestos as insulation and is well-contained and undisturbed. When the inspector goes into the crawlspace with a flashlight (there is no light down there), he discovers the water lines are Poly-B but have copper joints and there is no cracking.
For the above scenario, evaluate each of the following statements, and select those that are TRUE. (Select ALL that apply)
The soil contaminants are NOT an issue, because it’s a residential property.
The soil contaminants are a potential issue.
Asbestos must be removed and replaced before sale of the property.
Asbestos that is NOT being disturbed by renovations (or other movement) is NOT a prohibition to the sale of the property but MUST be disclosed to potential buyers.
Poly-B with copper joints is NOT reason to be concerned because they are in the dark basement.
Poly-B with copper joints may be an elevated leak risk, and a potential buyer should check with their insurance company to see if the building can be insured.
The soil contaminants are NOT an issue, because it’s a residential property.
Asbestos must be removed and replaced before sale of the property.
Poly-B with copper joints may be an elevated leak risk, and a potential buyer should check with their insurance company to see if the building can be insured.
From a buyer’s perspective, which of the following property types is likely to be the most economical for first-time buyers, usually has just one floor, may of may not have private laundry facilities, but has several adjoining units? (Select one)
Apartment.
Detached.
Duplex.
Row.
Semi-detached.
Triplex.
Fourplex.
Apartment
When is a building permit NOT required? (Select one)
Change the use of a building
Construct new buildings
Construct secondary suites in existing buildings.
Painting the exterior of a building.
Significantly alter existing buildings
Painting the exterior of a building.
Which of the following land use district (zone) would allow residential buildings that are NOT intended for full-time occupancy? (Select one)
Commercial.
Industrial.
Residential.
Recreational.
Special Use.
Recreational.
What is a primary impact of land use classification? (Select one)
Enables utility easements and public rights-of-way.
Ensures the highest amount of taxes are collected from each landowner.
Is the primary driver of interest rates in the lending market.
Land cannot be used in any way the property owner decides, it must conform to the municipalities land use policies.
Land cannot be used in any way the property owner decides, it must conform to the municipalities land use policies.
Which permit type is needed to confirm that the use of a property complies with the municipality’s land use plan and the associated land use bylaws? (Select one)
Building permit.
Code permit.
Construction permit.
Development permit.
Development permit.
Reginald is working with a client to build a property on a parcel of land that has recently been zoned for commercial development. The client is looking to secure a permit that confirms that the use of the property complies with the municipalities land use plan and the associated land use bylaws. What type of permit does Reginald’s client need? (Select one)
Building permit.
Development permit.
Improvement authorization permit.
Property construction permit.
Setbacks and easements permit.
Development permit.
Several years ago, Thea contracted with a construction company to expand her home by turning a garage into a spare bedroom and bathroom. Thea recently put the home on the market, and Frank, her real estate agent has asked Thea to show the permits demonstrating the construction complies with the applicable building codes. Thea remembers that the construction company told her they “got all the correct permits.” What permit type is Thea looking for that will demonstrate the new construction complies with the applicable building codes? (Select one)
Building permit.
Development permit.
Improvement authorization permit.
Property construction permit.
Setbacks and easements permit.
Building permit.
Which of the following land use district (zone) would allow large parcels with low density and mixed dwellings? (Select one)
Commercial.
Industrial.
Residential.
Recreational.
Special Use.
Residential.
Regarding the primary differences between permitted land uses and discretionary land uses, review each item below, and select the one TRUE statement. (Select one)
Permitted land use and discretionary use are the same things (what the property owner is allowed to do with the land).
Permitted land use are defined lists of uses that are allowed on the land with no further approvals required other than the necessary building permits, whereas discretionary uses are approved on a case-by-case basis by the Development Authority.
Permitted land use are defined lists of uses that are allowed on the land with no further approvals required (including any building permits), whereas discretionary uses are approved on a case-by-case basis by the Development Authority.
Permitted land use are defined lists of individuals who are authorized to build and construct properties within a municipality, whereas discretionary uses are construction companies that require advanced approval through the municipality’s Development Authority.
Permitted land use are defined lists of uses that are allowed on the land with no further approvals required other than the necessary building permits, whereas discretionary uses are approved on a case-by-case basis by the Development Authority.
A municipal land use plan must be diverse and thoughtfully planned to satisfy various needs and benefit the local population as a whole. Which of the following are reasons for the municipalities’ policies on land use (Select ALL that apply)
Aesthetics.
Better education for primary students.
Decrease in overall taxes required for municipality council members.
Economic development.
Environmental sustainability.
Improved prices for property sellers.
Providing adequate infrastructure for properties.
Public health.
Reduction of conflicts between property owners.
Aesthetics.
Economic development.
Environmental sustainability.
Providing adequate infrastructure for properties.
Public health.
Reduction of conflicts between property owners.
Gary is looking into purchasing some commercial properties from an individual that recently inherited them from his uncle. He has asked his real estate agent to look into the properties and provide some information on the land use of these properties. Which of the following would constitute due diligence actions for the licensee?
(Select ALL that apply)
An investigation is NOT necessary, all due diligence should be done by the seller’s agent.
Identify the bylaws applicable to each property, including setbacks, parking requirements, signage, lighting and permit requirements.
Investigate each property’s zoning classification and authorized uses.
Investigate whether or not the sale of the property will impact the discretionary use authorization.
Secure development permits for each property Gary may be interested in purchasing.
Enter each property and flush the toilet exactly fourteen times to ensure the toilets are working.
Identify the bylaws applicable to each property, including setbacks, parking requirements, signage, lighting and permit requirements.
Investigate each property’s zoning classification and authorized uses.
Investigate whether or not the sale of the property will impact the discretionary use authorization.
Municipalities define classifications of land use, called zones or land use districts. Which of the following methods can be used to verify land use classification of a particular property? (Select ALL that apply)
Access a municipalities website to answer common questions (if available).
Access the property and inspect the foundation stone for details.
Contact the planning department.
Visit the local library and access the “zone definitions” in the periodicals section.
Access a municipalities website to answer common questions (if available).
Contact the planning department.
