1. Introduction to Real Estate-Practice Questions And Answers…
1. What is the Provincial Act that regulates real estate brokers mortgage bro-
kers, an associates?: Real Estate Council of Alberta(RECA)
-Real estate professionals are authorized by RECA
-Offer advice and services related to buying, selling, or leasing real estate.
-but to activities are related to Real Estate Act(REA) example trade or potential trade.
2. What is an Associate Broker?: A person who holds a real estate broker qualifications but who is not authorized
to operate a brokerage.
-several associate brokers can be in one brokerage
-same education as a broker, same experience as the broker, but role, responsibilities, and limitations are of an associate.
3. Which of the following events requires immediate notification to the regis-
trar?: -Name change
-Brokerage changes
-Disciplinary matters
-Judgement in relation to providing goods or services to the public
-Has a business interest that has a judgment rendering against it
-Personal or business bankruptcy proceedings
-Criminal code proceedings or convicted of an offense. not minor traffic offenses
4. REAL PROPERTY goes beyond real estate to include a bundle of rights. Select
from the following list those which are part of the Bundle of Rights.: The right to
possess- occupy the property
The right to control-determine others' interests or uses for the property The right to
enjoy- use the property without outside interference
The right to exclude-refuse others' interests or uses for the property The right to
dispose of-to lease, sell, give, or hold the property.
5. Select the best type of ownership for the following scenario: Paula and
Amanda are sisters who each own equal shares in a bungalow in which they
jointly live in.: Tenancy-in-common: 2 or more owners own proportional shares of the property making up the whole. If 1
dies, then their share in the land goes to the estate, not to the other co-owner/s. The share might not be equal.
1/5
, In Alberta you must specify that you want to be joint tenant on the transfer document or you will automatically be registered as tenant-
in-common.
6. Select the best type of ownership for the following scenario: Yuri purchased
a two-story home for him and the his elderly mother to live in.: Sole ownership: can be
one person or a company
7. Which government body is responsible for the registering land ownership
rights in Alberta?: Service Alberta: Titles are documents that show legal ownership to a property or asset.
-responsible for registering land ownership rights in Alberta under the Land Titles Act.
8. Select the correct encumbrance based on the following definition:: CAVEATS: A
notice or warning has been given that someone is declaring they have an interest in a specific property.
-it is only a notice, and not yet a valid claim. register a Caveat on the title, the owner/s of the property are notified by the Lands Title
Office.
Specific Caveats in procedure manual: cannot be purchased until caveat is removed from title. EXAMPLE: UNPAID
CONDO FEES
9. What is a housing bubble?: a rapid increase in the value of houses followed by a sharp decline in their
value
-driven by increase in demand with limited supply
-emotional buying
-excessive buyers confidence that will be able to profit in future
--bubble bursts when prices can no longer sustain momentum
10. 4 components of Real Estate Act: 1. THE ACT: enacted by the provincial legislature.
2. THE BYLAW: RECAS board of directors. how they conduct and operate
3. THE RULES: Industry council.
4. THE REGULATIONS: Service of Alberta Minister through an Order in Cabinet. A vote of the provincial cabinet minister.
Know which one is being discussed, to know who has authority to change and amend!!!
11. RECA protects the public by:: -Licensing practitioners
-Setting standards of competency
2/5
1. What is the Provincial Act that regulates real estate brokers mortgage bro-
kers, an associates?: Real Estate Council of Alberta(RECA)
-Real estate professionals are authorized by RECA
-Offer advice and services related to buying, selling, or leasing real estate.
-but to activities are related to Real Estate Act(REA) example trade or potential trade.
2. What is an Associate Broker?: A person who holds a real estate broker qualifications but who is not authorized
to operate a brokerage.
-several associate brokers can be in one brokerage
-same education as a broker, same experience as the broker, but role, responsibilities, and limitations are of an associate.
3. Which of the following events requires immediate notification to the regis-
trar?: -Name change
-Brokerage changes
-Disciplinary matters
-Judgement in relation to providing goods or services to the public
-Has a business interest that has a judgment rendering against it
-Personal or business bankruptcy proceedings
-Criminal code proceedings or convicted of an offense. not minor traffic offenses
4. REAL PROPERTY goes beyond real estate to include a bundle of rights. Select
from the following list those which are part of the Bundle of Rights.: The right to
possess- occupy the property
The right to control-determine others' interests or uses for the property The right to
enjoy- use the property without outside interference
The right to exclude-refuse others' interests or uses for the property The right to
dispose of-to lease, sell, give, or hold the property.
5. Select the best type of ownership for the following scenario: Paula and
Amanda are sisters who each own equal shares in a bungalow in which they
jointly live in.: Tenancy-in-common: 2 or more owners own proportional shares of the property making up the whole. If 1
dies, then their share in the land goes to the estate, not to the other co-owner/s. The share might not be equal.
1/5
, In Alberta you must specify that you want to be joint tenant on the transfer document or you will automatically be registered as tenant-
in-common.
6. Select the best type of ownership for the following scenario: Yuri purchased
a two-story home for him and the his elderly mother to live in.: Sole ownership: can be
one person or a company
7. Which government body is responsible for the registering land ownership
rights in Alberta?: Service Alberta: Titles are documents that show legal ownership to a property or asset.
-responsible for registering land ownership rights in Alberta under the Land Titles Act.
8. Select the correct encumbrance based on the following definition:: CAVEATS: A
notice or warning has been given that someone is declaring they have an interest in a specific property.
-it is only a notice, and not yet a valid claim. register a Caveat on the title, the owner/s of the property are notified by the Lands Title
Office.
Specific Caveats in procedure manual: cannot be purchased until caveat is removed from title. EXAMPLE: UNPAID
CONDO FEES
9. What is a housing bubble?: a rapid increase in the value of houses followed by a sharp decline in their
value
-driven by increase in demand with limited supply
-emotional buying
-excessive buyers confidence that will be able to profit in future
--bubble bursts when prices can no longer sustain momentum
10. 4 components of Real Estate Act: 1. THE ACT: enacted by the provincial legislature.
2. THE BYLAW: RECAS board of directors. how they conduct and operate
3. THE RULES: Industry council.
4. THE REGULATIONS: Service of Alberta Minister through an Order in Cabinet. A vote of the provincial cabinet minister.
Know which one is being discussed, to know who has authority to change and amend!!!
11. RECA protects the public by:: -Licensing practitioners
-Setting standards of competency
2/5
