Unit 1-3: History of Real Estate Flashcards
Settlement Years (CAD West)
1870 - 1905
North American fur trade
In 1871, townships created for farming
Dominion Lands Act passed 1872 (cheap land to family head or 21-YO male)
1885 CPR done
1896 Biggest settlement push: free land, bonuses
1901-1905: 40k homesteads granted; grain farming, ranching, industry, commercial RE
Birth of AB
Sept 1, 1905; Alberta Act
1906: Real Estate Commission Act enacted - prevent frauds in land sales
1910: 3.3 million acres land cultivated
1914: 1 million people settled here
1920’s: RE stagnant; utilities, water, sewage behind demand; reduced residential RE pop decline; extreme weather
Great Depression & War
1928 - 1943
Oil industry helped improve things 1928-1929
Great Depression: 1929 stock market crash; 30% unemployment 1933, 60% welfare
1929: Real Estate Agent’s Licensing Act replaces 1906 statute
1930’s: gov’t created Credit; WWII employment; RE prices skyrockted short supply
Building materials rationed, housing shortages, rental boards to set rates
1942: Veteran’s Land Act - helps them to buy land, livestock, equipment; no commission
1940: AREA 1st RE trade org
1943: Calgary RE Board (CREB) and CAD RE Assoc (CREA) created
Post-War & Urbanization
1944-1969
Economic boom - oil sands, gas fields
Built self-contained neighbourhoods
Bigger properties for washing machines and TV
Consumer Age: housing boom, agriculture went mechanized/sold, booming cities
Oil Boom Years
1970-1979
Oil $ quadrupled; embargo created boom
Edm and Cal fastest-growing cities; vacancy almost 0
RE agents started to specialize in sectors/types
1975 Self-Regulation of RE
4 long-term objectives set out by AB Consumer & Corp Affairs:
1. Feasibility study for level of ctrl and exam marking;
2. Review fee strux to bring in line with cost of service;
3. Protect from fraud by increasing requirements;
4. Research self-regulation
Recession Years
1980-1989
1980: National Energy Program (NEP) - increase CAD ctrl of energy industry from increasing oil prices; federal taxes implemented
Caused 10% unemployment, collapse, foreclosures, bankruptcies after NEP
Regulation of RE Industry
Real Estate Assurance Fund: provide public with compensation from fraud
REAL Act: amended to create AB RE Licensing Committee (admin of licensing, ed stdrds, exams)
Restructuring Years
1990-1999
AB sought economic diversification
Stable & growth
Declining rural areas and fast growing cities = Fort Mac & Grande Prairie
The INTERNET, mobile phones
1996 Self Regulation
Real estate act shifted to RECA from prov gov’t
Pre-licensing & re-licensing
REAF goes to RECA too
RECA 1997-1999 Advancements
Disciplinary process; online system launched; new licensing model (associate, broker etc)
Millennium Years
2000-2009
2002 Oil Sands Economic Boom
Construction costs increased, workers came
2000’s Mortgage Fraud
Awareness course developed
Communication pieces published
Mortgage fraud task force created
Mandate updated to include fraud prevention
2004-2006 RECA Initiatives
2004: Act amended to include appraisers
2005: New website for info sources
2006: revises Rules of service relationship, more education
2008-2009 Financial Crisis
US Banking system, financial markets, RE markets
Housing boom: mtg lenders relaxed lending criteria for increased housing prices; interest rose; RE prices decreased; foreclosures
Securities backing mortgages defaulted
Institutions bankrupt
2009 Recession
Weak housing starts, low consumer spending, decline oil and gas, construction slowed, low mortgage approval rates
RECA response to recession
Established 5 advisory committees
Advertising guidelines published
Licensing reciprocity policy (for other agents)
Ed courses online
Current decades
Proper land use planning to max efficiency of land useage
Updating building codes: construction booms an issue
2010: RECA uses social media
2012: Self-regulation symposium; approves statement for same
5 Year Strategic Plan for RECA
2016-2020
Aware and informed consumers
Competent real estate professionals
Stakeholders positive relations
Max RECA capacity
