- Land refers to the ground and that which is above and beneath it - Includes the surface resources (soil, sand, gravel) - above it - May or may not include the deep resources (coal, gas, oil) depending on the description of the ownership rights and any exclusions found on the certificate of Title - beneath it

UNITS 1 - 3 REVIEW Flashcards by Charlie Gray

What is the Dower Act?

It protects the rights of an untitled spouse (on the certificate of title) in a matrimonial home.

The titled spouse can NOT dispose of (sell/mortgage/lease) the property without the consent of the untitled spouse

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What are the 3 things to consider RE: The Dower Act?

If the person is legally married
If there is only ONE name of the Certificate of Title
If either spouse has resided in the home after getting married

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Which of the following best describes the term Dower Act?

A) it protects the rights of the titled spouse in the matrimonial home when there’s a sole owner on the Certificate of Title

B) it protects the rights of the untitled spouse in the matrimonial home when the property is held in joint tenancy

C) it protects the rights of the untitled spouse in the matrimonial home when there is a sole owner on the Certificate of Title

D) it protects the rights of the untitled spouse in the matrimonial home when property is held as tenants in common

C) it protects the rights of the untitled spouse in the matrimonial home when there is a sole owner on the Certificate of Title

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What happens when the titled spouse dies in relation to The Dower Act?

It creates a lifetime estate for the untitled spouse

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What 3 things do you have to do before listing a house where the Dower Act applies?

Check the Certificate of Title
Get the Dower release / consent from the untitled spouse
Add release / consent to the brokerage file

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What is Joint Tenancy ?

When two people are listed on the Certificate of Title of a home

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John is a real estate professional with Prime Brokerage helping Sam and Melissa buy their new home. On pulling the title for the property, John sees that Melissa is the sole owner of the property as she had purchased the place prior to their marriage.

Which of the following statements apply here?

A) Dower Act dose not apply as Melissa had purchased the property prior to their marriage

B) Dower act does not apply as Sam and Melissa plan to use the property as a rental

C) Melissa needs to sign a Dower Release and register it on the title of the property

D) Sam will need to sign a Dower Consent so Melissa can sell the property

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Define Land

Land refers to the ground and that which is above and beneath it
Includes the surface resources (soil, sand, gravel) - above it
May or may not include the deep resources (coal, gas, oil) depending on the
description of the ownership rights and any exclusions found on the certificate
of Title - beneath it

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Define Real Estate

Real Estate includes the land as well as the improvements to the land

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What are Fixed Improvements to the land?

Fix improvements are items permanently attached to the land

Examples: A house, garage, barns, shed, shop, fence, pool, landscaping

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Define Real Property

Real property is the land, any fixed improvements to the land, and the property ownership rights that go with the ownership of the land.

THINK: Real estate + property ownership rights

Tangible attributes of real estate (Land, fixed improvements) + intangible attributes (property ownership rights)

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What is Incentive?

Anything that is advertised or offered by a brokerage to attract business + listings to that brokerage

CAN ONLY BE OFFERED BY A BROKERAGE AND NOT BY A REAL ESTATE PROFESSIONAL

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What is an Inducement ?

Inducement - something that is offered to SIGN + CLOSE a DEAL

Anything offered by a brokerage to persuade a person to enter into a real estate or mortgage transaction

EG. Customer doesn’t want a corner lot due to snow removal - Brokerage could offer to gift a snow blower if customer will sign the deal on corner lot

CAN ONLY BE OFFERED BY A BROKERAGE AND NOT BY A REAL ESTATE PROFESSIONAL

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What is the difference btwn Inducement Vs Incentive?

Incentive - something that is offered to BRING business to a brokerage

Inducement - something that is offered to SIGN a DEAL

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Define Money Laundering

The process of taking money from illegal sources (eg. selling drugs) and making it appear as if it is coming from a legitimate source

Converting the proceeds of a crime into a less suspicious form

If someone sells drugs and owns a restaurant - Restaurant is actually only making 10,000$/month but they are saying that 50,000$/month is being made
they are laundering 40,000$/month

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What are Ethics?

A voluntary set of conduct rules, values and beliefs held by an individual that guide their behavior

2 Types:
1) Utilitarian Ethics (Consequence) - Promote conduct that maximizes others welfare while reducing harm or injury. Focus is on consequence of persons actions not on intention

2) Duty -based Ethics (Intention) - focuses on the intention behind an individuals actions as opposed to the consequences of the actions

Eg. someone is driving on ice an accidently hits a person - the drivers intention was NOT to hit the person, the car slid on ice and it was an accident.

Utilitarian Ethics would not care that this was an accident
Duty- based Ethics would care and punishment would be less

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What is the difference btwn Utilitarian and Duty-based Ethics?

1) Utilitarian Ethics (Consequence) - Promote conduct that maximizes others welfare while reducing harm or injury. Focus is on consequence of persons actions not on intention
2) Duty -based Ethics (Intention) - focuses on the intention behind an individuals actions as opposed to the consequences of the actions

Eg. someone is driving on ice an accidently hits a person - the drivers intention was NOT to hit the person, the car slid on ice and it was an accident.

Utilitarian Ethics would not care that this was an accident
Duty- based Ethics would care and punishment would be less

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What is the 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 by that contract

Examples: (Know these!)

Contracts for the SALE of an interest in land
Contracts for Debt or Duty (LOANS)
Contracts that can not be preformed within one year

All real estate contracts have to be in writing

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What are Surface Rights?

When dealing with Real Estate we are ONLY dealing with SURFACE RIGHTS

Include the rights to:

The physical ground
The air space above the ground
Any materials from the top layer of land eg. sand, gravel (not what’s deep below the ground eg, coal, oil ect.)

Eg. If diamond mine is found within sub-surface of property - property owner dose not own those diamonds, the government does

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What are Mineral Rights?

Mineral rights are the rights to the natural resources below the top layer of land (Coal, Oil, Diamonds, Gold)

NOT apart of the Real Estate transaction - All mineral rights belong to government

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In common law, what does the term “real estate” refer to?

A) Land and fixed improvements to the land
B) An item that can be removed from the property without causing damage to the property
C) Items not securely affixed to the land or buildings
D) Land, fixed improvements to the land and intangible rights of ownership

A) Land and fixed improvements to the land

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In common law, what does the term “real property” refer to?

D) Land, fixed improvements to the land and intangible rights of ownership

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Which of the following statements best describes the term “personal property”?

B) An item that can be removed from the property without causing damage to the property

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Which of the following industries are self-regulated through RECA?

I. Real estate
II. Mortgage brokerage
III. Real estate appraisals
IV. Property Inspectors

A) Statements I, II and III
B) Statements I, II and IV
C) Statements II, III and IV
D) Statements I, III and IV

A) Statements I, II and III

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What are the factors of production?

1. Land 2. Labour 3. Capital 4. Entrepreneurship

Canadian economy is referred to as? 1. Capitalist economy 2. Socialist economy 3. Mixed economy 4. Traditional economy

3. Mixed economy

Which of the following statements best defines quantity SUPPLIED? 1. The quantity of a good or service that would be bought at a certain price 2. The amount of good or service the market can offer at a certain price. 3. The quantity of a commodity that people are willing to buy at a particular price at a particular point of time 4. All of the above

2. The amount of good or service the market can offer at a certain price.

Which of the following statements best defines quantity DEMANDED? 1. The quantity of a good or service that would be bought at a certain price 2. The amount of good or service the market can offer at a certain price. 3. The quantity of a commodity that producers provide over a given interval of time 4. All of the above

1. The quantity of a good or service that would be bought at a certain price

Which of the following statements is correct? 1. Movements along the supply line occur when a change in quantity supplied is caused only by a change in price 2. Shifts in supply line occur when there are changes in influencing factors other than price 3. Movements along the supply line occur when there’s a change in the price of the product or service which leads to a change quantity demanded 4. Shifts in supply line occur when there’s a change in quantity demanded is due to an influencing factor other than price

1. Movements along the supply line occur when a change in quantity supplied is caused only by a change in price 2. Shifts in supply line occur when there are changes in influencing factors other than price

Which of the following statements best describe Market Equilibrium? 1. When the prices for a product become grossly over inflated beyond its realistic value primarily due to excessive consumer confidence 2. When the quantity demanded exceeds the quantity supplied at the current price 3. When the quantity supplied exceeds the quantity demanded at the current price 4. When the quantity of goods supplied is equal to the quantity demanded

4. When the quantity of goods supplied is equal to the quantity demanded

Describe Market Surplus

When the quantity supplied exceeds the quantity demanded at the current price

Which of the following statements best describe Market Surplus? 1. When the prices for a product become grossly over inflated beyond its realistic value primarily due to excessive consumer confidence 2. When the quantity demanded exceeds the quantity supplied at the current price 3. When the quantity supplied exceeds the quantity demanded at the current price 4. When the quantity of goods supplied is equal to the quantity demanded

3. When the quantity supplied exceeds the quantity demanded at the current price

Which of the following statements best describe Market Bubble? 1. When the prices for a product become grossly over inflated beyond its realistic value primarily due to excessive consumer confidence 2. When the quantity demanded exceeds the quantity supplied at the current price 3. When the quantity supplied exceeds the quantity demanded at the current price 4. When the quantity of goods supplied is equal to the quantity demanded

1) When the prices for a product become grossly over inflated beyond its realistic value primarily due to excessive consumer confidence

What is GDP and what does it stand for

Gross Domestic Product The monetary value of all finished goods and services produced within the country in a given period GDP = includes all consumer, government and business spending + the exports - imports

What is GNP ?

Gross National Product The monetary value of all finished goods produced by a country’s citizens and enterprises whether physically located in its borders or abroad GNP does not include income earned within a country’s borders by foreign residents.

Which of the following are the stages of a business cycle? 1. Expansion, Prosperity, Peak, Contraction, Recession, Trough and Recovery 2. Expansion, Prosperity, Recession, Trough and Recovery 3. Introduction, growth, maturity and decline 4. Growth, maturity, regeneration and decline

1. Expansion, Prosperity, Peak, Contraction, Recession, Trough and Recovery

Who is responsible for the Real Estate Act?

The Minister of Service Alberta

What are the phases of a business cycle in the correct order?

``` Expansion Prosperity Peak Contraction Recession Trough Recovery ```

What is a market bubble?

Market bubble is a temporary situation in the business cycle where prices for a product become grossly inflated beyond its realistic value

How do you calculate the Vacancy Rate?

multiply the number of vacant units by 100 before dividing by the total number of units.

A commercial building has 4,400 square metres of available office space for rent. By year end, 1,200 square metres remains vacant. What is the Vacancy Rate?

``` # of vacant units = 1,200 1,200 * 100 = 120,000 120,000 / 4,400 = 27.27 ``` Vacancy Rate = 27.27

What are the physical characteristics of Real Estate? A) Unique, Durable, Scarce B) Unique, Dynamic, Standardized C) Unique, Fixed, Durable, Scarce D) Stable, Rigid, Durable

C) Unique, Fixed, Durable, Scarce

What are the 3 types of real estate markets?

1. Balanced Market 2. Buyers Market 3. Sellers Market

What type of the market is it when the inventory of properties (i.e. supply) in the market exceeds the number of buyers competing for that inventory.

Buyers Market

Chattels are also referred to as what type of property? A) Private property B) Individual property C) Personal property D) Exclusive property

C) Personal property

What are the 4 factors of production?

Land, labor, capital, entrepreneurship

What causes a MOVMENT along the supply line?

When a change in quantity is caused by a change in PRICE (and price only)

Shifts in the supply line occur when....?

When something other than price causes the supply to change. Some factors that can cause a shift in the supply line are: •A change in Production costs •A change In Technology •A change in Producer expectations •A change in Number of suppliers in the market •A change in Government taxes

What is CPI?

Consumer Price Index It measures the cost of a fixed basket of goods and services purchased by families and individuals over time.

Changes in Economic Activity are caused by what 3 reasons?

- Seasonal changes - Business cycles - Secular trends

Which of the following statements is true about The Real Estate Act? Choose only ONE best answer. A) The Real Estate Act is the provincial legislation B) The Real Estate Act is the federal legislation C) The Real Estate Act is enacted by RECA D) Minister of Service Canada is responsible for the real Estate Act

A) The Real Estate Act is the PROVINCIAL legislation

Which of the following is true about The Real Estate Act? A) The Real Estate Act establishes the framework for regulating the real estate, mortgage brokerage and real estate appraisal professionals in Alberta B) The Real Estate Act can be amended by the provincial legislature C) The Act provides the mechanism for self regulation of the industries D) RECA is responsible for updating the Real Estate Act

A B + C are true

What are the 4 components of the Real Estate Act

The Act, The Rules, The Regulations & The By Laws

Who is responsible for the Real Estate Act?

The Minister of Service Alberta

Which of the following statements is true for the Rules? 1. Rules can only be amended by the provincial legislature 2. Rules are the standards of practice for industry professionals 3. Rules affect the day-to-day business of the industry professional 4. Rules can be established and amended by the Council

2,3,4 are true statements

Which of the following statements is true for the Bylaws? 1) Bylaws are guidelines that specify how RECA conducts and operates its business 2) Bylaws set policy in regards to the organization and administration of the Alberta Real Estate Foundation and the Real Estate Assurance Fund 3) Bylaws contain most of the requirements affecting licensee business activities 4) RECA can create and amend Bylaws

1) Bylaws are guidelines that specify how RECA conducts and operates its business 4) RECA can create and amend Bylaws

Which of the following are purposes of RECA? 1) Administer the Act 2) Set and enforce standards of conduct for the industry and the business of industry professionals 3) To protect against investigate, detect and suppress mortgage fraud 4) To protect consumers affected by the industry

ALL OF THE ABOVE

What is needed to be authorized to trade in real estate?

Licence and registration certificate

What are the three industries regulated by RECA?

1. Real Estate 2. Mortgage Brokerage 3. Real Estate Appraisers

4 Classes of Licenses in Real Estate ?

1. Brokerage 2. Broker 3. Associate Broker 4. Associate

Explain the Real Estate Act

Its PROVINCIAL Legislation It established the framework for all self regulation of the real estate, mortgage brokerage and real estate appraisal professionals in AB Minister of Service AB is responsible for the Act Can only be amended by provincial legislature

Who can make changes to the Rules and Bylaws in the Act ?

RECA

Who can make changes to The Act & Regulations?

Minister of Service AB & Provincial Legislature

Anything a brokerage offers or gives to a person who is, or who could be, a party to a real estate or mortgage transition, meant to assist, persuade or cause that person to enter into a particular earl estate or mortgage transition - describes what?

Inducement

What is the difference between an inducement and an incentive ?

The purpose of incentives is to bring business into the brokerages whereas inducements are use to motivate / persuade clients to move forward and close a deal

Which of the following statements best describes the term “ethics”? A) A set of beliefs held by an individual and founded on fundamental principles of right and wrong. B) Values and beliefs held by an individual which guide his or her actions C) The rules and regulations governing the day-to-day activities of persons who adopt such standards D) The rules and regulations governing the day-to-day activities of persons who adopt such standards

B) Values and beliefs held by an individual which guide his or her actions

Which of the following statements best describes the term “morals”? A) A set of beliefs held by an individual and founded on fundamental principles of right and wrong. B) Values and beliefs held by an individual which guide his or her actions C) The rules and regulations governing the day-to-day activities of persons who adopt such standards D) The rules and regulations governing the day-to-day activities of persons who adopt such standards

A) A set of beliefs held by an individual and founded on fundamental principles of right and wrong.

Which of the following terms is best described by the statement “The rules and regulations governing the day-to-day activities of persons who adopt such standards”? A) Ethics B) Morals C) Ideals D) Professional Standards

D) Professional Standards

What are the 3 different stages in the Kohlberg's Model of moral development?

Pre- Conventional Conventional Post-Conventional

In which stage of the Kohlberg’s Model of moral development is an individual predominantly focused on individual self-interest? A) Pre-Conventional B) Conventional C) Post-Conventional

A) Pre-Conventional

In which stage of the Kohlberg’s Model of moral development are an individual’s acts based on his or her compliance with social convention? A) Pre-Conventional B) Conventional C) Post-Conventional

B) Conventional

The statement “The individual has developed abstract moral reasoning that, in conjunction with social convention, guides their moral conduct”, describes which stage of the Kohlberg’s Model of moral development? A) Pre-Conventional B) Conventional C) Post-Conventional

C) Post-Conventional

What type of ethics are focused on maximizing others’ welfare or happiness while minimizing their harm or injury? A) Utilitarian ethics B) Duty based ethics C) Virtue ethics D) Situation ethics

A) Utilitarian ethics

What type of ethics are focused on the intentions and motives for the individual’s actions as opposed to its consequences? A) Utilitarian ethics B) Duty based ethics C) Virtue ethics D) Situation ethics

B) Duty based ethics

In real estate, a real estate professional’s ethical decisions are influenced by which of the following? A) RECA, Canadian Real Estate Association, Real Estate Board B) Canadian Law, Industry Ethics, Brokerage Ethics, Personal Ethics C) Alberta Real Estate Association, Real Estate Board, the Council D) Canadian Law, Alberta Real Estate Association, Brokerage Ethics, Personal Ethics

B) Canadian Law, Industry Ethics, Brokerage Ethics, Personal Ethics

Which of the following outlines the overall process that may be used to analyze an ethical dilemma? A) The Ethical Decision-Making Model B) Ethical Dilemma Evaluation Checklist C) The Ethical Decision-Making Worksheet D) Ethical Dilemma Evaluation Agenda

A) The Ethical Decision-Making Model

What is the type of reaction to the presence of an ethical dilemma which includes sweating palms, nervousness, muscular tension, stomach flutters etc. as a result of fear or uncertainty called? A) Intellectual response B) Intuitive response C) Physical response D) Corporal response

C) Physical response

The results of applying which of the following will confirm if your preferred conduct option is appropriate to resolving the ethical dilemma? A) Ethical Dilemma Evaluation Model B) The Ethical Decision-Making Worksheet C) The Ethical Decision-Making Model D) Ethical Decision-Making Checklist

D) Ethical Decision-Making Checklist

What are the benefits of using the Ethical Decision-Making Model? A) It helps you take the emotion out of the decision-making process B) It helps you examine the dilemma from a variety of different perspectives C) It helps determine who the dilemma impacts and who should make the decision D) It helps you recognize the variety of possible solutions that may exist

ALL OF THE ABOVE

In the real estate industry we need to council our clients. if the client asks when the best time is to list their residential property and we tell them late January or February is the best time because most buyers would like to get into their home during spring and early summer. This is an example of a) Seasonal fluctuations b) business cycles c) Secular trends

a) Seasonal fluctuations

The city of Ft McMurrary is one of the most expensive cities in AB to purchase a single family home. What force that influences supply and demand would be the cause of this? A) Demographics B) Employment Conditions and Wage Levels C) Building activity

B) Employment Conditions and Wage Levels

If an industry member of the real estate and mortgage industries have a question concerning regulatory compliance or standards they may call A) The Governments Practice Advisor for advice B) RECA's Practice Advisor for advice C) AREA's Practice Advisor for advise

B) RECA's Practice Advisor for advice

The ___________ has the authority to create By-laws governing the council A) Council B) Govt of AB C) Alberta's Real Estate Association

A) Council aka RECA

The practice review and its finding will be discussed 1) Openly with the industry professionals in Brokerage 2) Only with the broker

The practice review and its findings will be discussed 1) Openly with the industry professionals in Brokerage 2) Only with the broker

2) Only with the broker

By having the potential buyer signing a customer status acknowledgment the real estate professional completed which one of the 5D's of Role Clarify and Consistency A) Discuss the types of real estate relationships B) Determine your representative capacity C) Document your representative capacity D) Disclose your representative capacity

C) Document your representative capacity

__________ is a system of historical customer and accumulated court decisions that has evolved through out the English legal system to become a body of law

Common Law

What are the 7 common documents registered on the title of certificate?

1. Mortgages 2. Easements 3. Leases 4. Restrictive Covenants 5. Liens 6. Land Transfers 7. Discharges

Which of the following is NOT one of the common documents registered on the title? 1. Mortgage 2. Easements 3. Purchase Contracts

3. Purchase Contracts

What should a landlord do with the security deposit when a tenant moves out? A) Return the deposit within 10 days B) Return the deposit within 30 days after the tenant gives up possession C) Deliver a statement of account and return the remaining balance within 30 days after the tenancy ends

C) Deliver a statement of account and return the remaining balance within 30 days after the tenancy ends

With respect to the plan # of a condo plan # - which one of the following is correct? A) 9720398 - the 98 refers to the year the plan was registered B) 9720398 - the 2 refers to the fact that this plan was registered in the Northern Alberta Office

B) 9720398 - the 2 refers to the fact that this plan was registered in the Northern Alberta Office The first 2 numbers are the year the Condo plans were registered The 3rd # identified the Land Titles Office where the condo plan was registered (1 = south AB, 2 = north AB) The last 4 #'s refer to the order it was received by the land titles office

Knob and tube wiring was used in the 1970's True or Flase

False - it was used in the 50's Consist of 2 wires and no ground wires

A Real Estate professional prepares a CMA for a seller. The seller indicates that they have spent $25,000 on landscaping by the real estate professional tells them that the market value on the landscaping is only $13,000. This is an example of what Principle of Property valuation? A) Principle of Market Value B) Principle of Contribution C) Principle of Conformity

B) Principle of Contribution

Canada's _________ market is the mechanism by which savers and borrowers interact? A) Capital B) Mortgage C) Primary Mortgage

A) Capital

What type of mortgage is this? In order to compensate the lender for any rise in market interest rates during the term of the mortgage, the interest rate charged on a __________ will typically be higher than the interest rate charged on other mortgages. A) Fixed Rate Mortgage B) Variable Rate Mortgage C) Adjustable Rate Mortgage

A) Fixed Rate Mortgage

What dose REIX stand for?

Real Estate Insurance Exchange

Which of the following are covered under REIX? A) Errors, omissions and negligent acts B) Errors, omissions and fraud C) Fraud, breach of trust and failure to disburse money D) Errors, fraud and failure to disburse money

A) Errors, omissions and negligent acts

Which of the following are the benefits of the Professional Standards of Practice? 1) Standards provide real estate professionals with guidance and clarity regarding day-to-day activities 2) Standards provide a consistent benchmark of conduct to all real estate professionals 3) Standards allow real estate professionals to compete based on their competency and service by disallowing deceptive or misleading business activities 4) Standards help to clarify the expectations of the public when dealing with real estate professionals

ALL OF THE ABOVE

Which of the following would be covered by REIX? A) A real estate professional fails to lock the front door of the seller’s property after the showing and the place gets robbed B) A real estate professional accidently leaves a window open after hosting an open house and there’s water damage to client’s property due to a snowstorm C) A real estate professional is meeting a client at his home office and the client slips and falls on the driveway D) A real estate professional provides wrong information to the client resulting in loss to the client

D) A real estate professional provides wrong information to the client resulting in loss to the client

How can real estate professionals manage risk? 1) Practice in accordance with the Act, Rules, and Regulations and follow the policies and procedures of the brokerage 2) Refrain from using unreliable documentation or unsubstantiated information pertaining to any aspect of a property 3) Perform only those activities that are not within one' s scope of knowledge and expertise 4) Document and provide all real estate-related records to the broker in a timely manner.

ALL OF THE ABOVE

Participation in the REIX program is mandatory for which of the following classes of licenses? A) Real estate associate, mortgage associate, real estate appraisers B) Brokerage, broker, associate broker, and associate C)Broker, associate broker and real estate associate D) Brokerage, broker, real estate associate, and mortgage associate

B) Brokerage, broker, associate broker, and associate

Which of the following activities are excluded from the REIX insurance coverage? 1) Activities that are not considered to be trades in real estate. 2) Damage to, or loss of, tangible property 3) Liability assumed under a contract for services which are part of a real estate trade 4) Personal trades by real estate professionals for their personal or their spouse’s benefit A) Statements 1, 2 and 3 B) Statements 2, 3 and 4 C) Statements 1, 2 and 4 D) All of the above

D) All of the above

The Real Estate Assurance Fund compensates consumers who suffer a financial loss as a result of an industry professional committing which of the following acts? A) Errors, omissions and negligent acts B) Errors, omissions and fraud C) Fraud, breach of trust and failure to disburse money D) Errors, fraud and failure to disburse money

C) Fraud, breach of trust and failure to disburse money

What is the maximum The Real Estate Assurance Fund will pay for damage or losses suffered by consumers? A) $35,000 per claimant, per compensation event and a maximum combined payment of $350,000 for all claimants for a single compensation event B) $25,000 per claimant, per compensation event and a maximum combined payment of $250,000 for all claimants for a single compensation event C) $10,000 per claimant, per compensation event and a maximum combined payment of $1,000,000 for all claimants for a single compensation event D) $100,000 per claimant, per compensation event and a maximum combined payment of $1,000,000 for all claimants for a single compensation event

A) $35,000 per claimant, per compensation event and a maximum combined payment of $350,000 for all claimants for a single compensation event

Which of the following statements is correct about the common law doctrine of vicarious liability as it relates to trading in real estate? 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

What is a strict liability tort?

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

What is an intentional Tort ?

An injury inflicted by positive, willful, and aggressive conduct of the real estate professional The person committing the tort intends a particular harm to result from the misconduct. Examples of intentional torts include assault, fraud, theft, defamation, slander, and trespass

Which of the following activities by a brokerage can help reduce the risk associated with vicarious liability? A) Obtain insurance to cover negligent acts by real estate professionals and staff of the brokerage B) Establish and enforce brokerage policies and procedures C) Ensure all real estate professionals and staff of the brokerage are trained and supervised D) All of the above

D) All of the above

Which of the following are correct about Tort Law? - Choose all that apply A) Tort law deals with civil and criminal matters B) Tort law assumes that there is a 'standard of care' owed by one party to the other party C) It seeks to discourage injurious, careless, and risky behavior in the future D) Torts relate to either an omission or a commission

B, C + D

Describe Neglect Torts

When a person didn’t intend to cause harm but someone was injured by their carelessness

Moe is a real estate professional with Top Tier Realty. He is assisting his out-of-town buyers find a suitable property. The buyers have expressed desire to move into a quiet neighborhood. The real estate professional is aware that train station will be built behind the property in the near future as a major train project has been recently approved. When asked about the open field behind the house, the real estate professional answers they don’t know if anything will be built there. What type of misrepresentation is this? A) Intentional tort B) Unintentional tort C) Negligent tort D) Strict liability tort

A) Intentional tort

Linda is a real estate professional with Heritage Realty. She is listing a property for her seller clients. She has measured the property but when entering the property measurements in the listing service, she transposes two numbers. As a result, listing shows the property size to be larger than it actually is. What type of misrepresentation is this? A) Intentional tort B) Unintentional tort C) Negligent tort D) Strict liability tort

C) Negligent tort (think carelessness)

Sandy is a new real estate professional with New Age Realty. She is listing her first property. As she’s fairly new to the listing system, she’s quite anxious. As a result, she inputs 4 bedrooms and 4 bathrooms in the listing instead of 4 bedrooms and 3 bathrooms. When Jason shows the property to his buyer clients, he realizes Sandy’s mistake. What should Jason do? Choose all that apply 1. Notify Sandy of her mistake 2. Notify Sandy’s broker of her mistake 3. Notify his own broker of Sandy’s mistake 4. Notify Reca of Sandy’s mistake

1 & 3

Which of the following statements is correct for brokerages? (choose all that apply) 1. A brokerage is the only legal entity authorized to trade in real estate by RECA 2. A brokerage can have only one licenced broker 3. There is no restriction on the number of brokers, associate brokers and associates that can be registered with the brokerage 4. The broker, the associate brokers, and the associates can only trade in real estate in the name of the brokerage with which they are registered

1, 2 + 4

Which of the following statements is true for those engaged by the brokerage to trade in real estate? (choose all that apply) 1) Be licensed by RECA and be registered with that brokerage 2) Trade in real estate only in the name of that brokerage 3) Receive commissions for trades in real estate only from that brokerage 4) Receive referral fees from other industry professionals and brokerages

1) Be licensed by RECA and be registered with that brokerage 2) Trade in real estate only in the name of that brokerage 3) Receive commissions for trades in real estate only from that brokerage

What are the components of leadership? (Choose all that apply) A) Authority B) Supervision C) Responsibility D) Accountability

A) Authority C) Responsibility D) Accountability

Which of the following are the reasons for which the broker has the authority to be the leader of the brokerage? A) The broker owns the brokerage and is responsible for the management of the brokerage B) They hold the applicable authorization issued by RECA C) This authorization is achieved through meeting the education and experience requirements as established by RECA D) A broker is registered with and approved to operate a real estate brokerage, and trade in real estate on behalf of that brokerage

B) They hold the applicable authorization issued by RECA C) This authorization is achieved through meeting the education and experience requirements as established by RECA D) A broker is registered with and approved to operate a real estate brokerage, and trade in real estate on behalf of that brokerage Not A) because the broker dose not necessary have to own the brokerage (They can, and often do, but its no a requirement)

John is a broker of Royal Oak Realty. He is leaving for vacation and delegates his duties to Priya, an associate broker with the brokerage. Which of the following is true about broker delegation of duties? A) The broker delegate must be capable of competently carrying out the duties B) The delegation details are clear, in writing, and understood by both the broker and the delegate C) The particulars of the delegation are communicated to the other brokerage licensees and the staff D) The delegate becomes accountable for the actions of the brokerage as well as the conduct of its administrative staff and real estate professionals

A) The broker delegate must be capable of competently carrying out the duties B) The delegation details are clear, in writing, and understood by both the broker and the delegate C) The particulars of the delegation are communicated to the other brokerage licensees and the staff

Malaki is a real estate professional High Point Realty, just starting his real estate career. He has always been ambitious and would like to move up the career ladder in real estate. How many years of experience does Malaki need to become a broker? A) 5 B) 10 C) 2 D) 3

C) 2 - it requires 2 year of experience in the "field" before you can become a broker

Which of the following are the duties and obligations of Real estate professionals? (choose all that apply) A) To act on behalf of the brokerage B) To follow the policies and procedures of the brokerage C) To comply with the Real Estate Act, Rules, Regulations, and Bylaws D) To represent the themselves in the promise and provision of services

A) To act on behalf of the brokerage B) To follow the policies and procedures of the brokerage C) To comply with the Real Estate Act, Rules, Regulations, and Bylaws

Who is responsible for administering REIX? A) RECA B) The Council C) The Advisory Board D) Minister of Service Alberta

C) The Advisory Board

Sam is a real estate professional with Pro Realty Services. A buyer meets Sam at his home office to write an offer on a property. While exiting the home office, the buyer falls down the icy front steps, breaks his ankle, and is unable to work for five months. The buyer initiates a lawsuit against Sam for his lost wages. Which insurance coverage will cover this incident? Choose only ONE best answer. A) Homeowners Insurance B) Professional Liability Insurance. C) Comprehensive General Liability Insurance D) Real Estate Insurance exchange

C) Comprehensive General Liability Insurance

Which of the following statements is correct for Real Estate Insurance exchange (REIX)? A) REIX is mandatory for all classes of real estate licences in Alberta B) REIX is administered under the guidance of an Advisory Board appointed by RECA C) RECA collects the premiums for the program on behalf of REIX when licences are renewed on September 30 of each year D) REIX is a reciprocal insurance program represents a pooling of risk for all classes of licences in real estate

ALL BE DA TRUFFF

What is the deductible for REIX? Choose only ONE best answer. A) $3,500 for the first claim and $7,000 for any subsequent claims within three years of the first claim B) $2,500 for the first claim and $5,000 for any subsequent claims within three years of the first claim C) $3,500 for the first claim and $7,000 for any subsequent claims within two years of the first claim D) $2,500 for the first claim and $5,000 for any subsequent claims within two years of the first claim

A) $3,500 for the first claim and $7,000 for any subsequent claims within three years of the first claim

Level ONE of Kholbergs Model of Moral Development is.....

Pre-Conventional Egocentric - childlike behaviors Rewards and punishment based acts of obedience

Level TWO of Kholbergs Model of Moral Development is.....

CONVENTIONAL acts are based on approval of individuals social relationships - Compliance with social convention Younger adults

Level THREEof Kholbergs Model of Moral Development is.....

POST Conventional middle aged - older adults individual has developed moral reasoning (thinkingof others) and social conventions that guide their moral conduct

Describe Utilitarian Ethics

Maximizing others welfare or happiness while minimizing their harm Individuals motivation or intentions for an action are not important Consequentialism

Describe Duty based ethics

Deals with individuals intention or motivation of action an individual is expected to do the right thing because its the right thing to do

What is the authorization process

License + Registration Certificate = Authorization

Sam wants to be a real estate professional in AB and needs help to work through the authorization process What courses must Sam take to complete the Real Estate Associates Program successfully A) Fundamentals of Real Estate and at least one practice course B) Principles of Real Estate and Real Estate Professional areas of Practice C) Intro to Real Estate and Real Estate as a Professional career D) Basics of Real Estate and the skilled real estate professional

A) Fundamentals of Real Estate and at least one practice course

What score do you need to obtain on each final exam to successfully complete the Real Estate Associates Program? A) 60% B) 65% C) 70% D) 75%

C) 70%

For RECAS purposes, how long from the date of issue us a criminal record check valid ? A) 3 months B) 6 months C) 9 months D) 12 months

B) 6 months

If Same is worried about a prior situation that may affect his application of licensing, what may he request fro RECA prior to completing his education requirements? quality assurance review advance suitability review advance competence review advance license review

advance suitability review

If Sam wants to trade in Real Estate once he has completed the Real Estate Associates program, what is his next step? A) become employed with a licensed brokerage in AB B)verify with RECA his authorization to trade in real estate C) Submit to RECA the education eligibility application form D)Complete RECAS Re-Licensing education program

A) become employed with a licensed brokerage in AB

Once completing the REAP (Real Estate Associate Program) how long do you have to become registered with a licensed brokerage in AB?

within 1 year of passing the exam

To become employed with a brokerage - You will need to complete and submit which of the following to RECA A) New license & Registration application B) Associate broker application authorization C) Application for RECA identification number

A) New license & Registration application

Once Sam is authorized to trade in Real Estate - when will his registration expire? Each year on December 31st Each year on September 30th Each year on June 30th Each year on January 1st

Each year on September 30th

If Sam ceases to be registered with a brokerage, how long is his license valid for? 12 months 18 months 24 months 36 months

36 months

A real estate professional wishes to be authorized again within ON YEAR of ceasing to be registered with a brokerage. What requirements will the industry professional need to complete to be authorized to trade in Real estate? 1. Complete a registration ( re-registration online application) 2. Complete all REP courses during the time period they were unregistered 3. Have the broker submit the online application 4. Complete a suitability review application

1 + 3

WHICH OF THE FOLLOWING TERMS BEST DESCRIBES JURISDICTIONS THAT HAVE ENTERED INTO MUTUAL RECOGNITION AGREEMENTS BETWEEN THEM TO ALLOW CURRENTLY AUTHORIZED PROFESSIONALS TO APPLY FOR A COMPARABLE CLASS OF LICENSE A) LABOR EXCHANGE B) LABOR MOBILITY C) LICENSE RECOGNITION D) LICENSE COOPERATION

B) LABOR MOBILITY

Which of the following situation may prompt the executive director to suspend or cancel a real estate professionals license A) Swearing a false affidavit B) Providing false or misleading information C) Failing to maintain appropriate insurance coverage D) all of the above

all of the above

According to the Rules, which of the following statements best defines a referral? A) Recommending or directing a person or service, assistance or business to another person or business B) Receiving a fee from a service provider or business for sending a person to them for provision of assistance C) Receiving the name of a person needing assistance from another service provider with the obligation to pay a fee to the originating party D) Sending a person for service, assistance or business to another service provider for the potential of a fee or other compensation

A) Recommending or directing a person or service, assistance or business to another person or business

What are the steps in the ethical decision making model? | Hint: RATI

1. Identify that an ethical dilemma exists 2. Analyze the dilemma using the Ethical Dilemma Evaluation checklist 3. Test options using the Ethical Dilemma Decision Making checklist 4. Implement best ethical option

What are the 3 types of responses to Recognizing an Ethical Dilemma

Physical Response, Intuitive Response and Intellectual Response

Which of the following is the most appropriate way to handle a referral fee?

A) The fee is paid by one brokerage directly to another brokerage

The Rules require real estate brokerages to retain all its transaction records. Which statement best describes this requirement as it relates to real estate professionals? A) Transaction records can include such items as written disclosures and specific property advertising B) Real estate professionals are not required to give unsuccessful transaction records to the brokerage C) Real estate professionals only need to provide copies of emails to the brokerage for successful real estate transactions D) All the statements are correct

On June 15th, Cory successfully completed the final education exam required by RECA to become licensed as a real estate professional. How long does he have to become registered with a real estate brokerage before the completion of the education requirement is no longer valid? A) Until September 30 that year B) Until December 31 that year C) Until June 14 the following year D) Until June 15 the following year