©FYNDLAY 2025 ALL RIGHTS RESERVED 11:49 AM A+
Alberta Real Estate Fundamentals Exam
Questions And Answers |Latest 2025 |
Guaranteed Pass
In common law what does the term real estate refer to? - Answer✔Land and fixed
improvements to the land
In common law what does the term real property refer to? - Answer✔Land, fixed
improvements to the land and intangible rights of ownership
Which of the following statements best describes the term "personal property"? - Answer✔A
movable item that can be removed from the property without causing damage to the property
Which industries are self regulated through RECA? - Answer✔Real estate, mortgage
brokerages, property management, condominium management
What are the factors of production? - Answer✔land, labor, capital, entrepreneurship
What is the Canadian economy referred to as? - Answer✔Mixed Economy of capitalist &
Socialist
What is quantity supplied? - Answer✔the amount of a good or service the market can offer at a
certain price
Define quantity demanded - Answer✔The amount of good or service that would be bought at a
certain price
1|Page
, ©FYNDLAY 2025 ALL RIGHTS RESERVED 11:49 AM A+
What causes movements and shifts in supply? - Answer✔Movements are when a change in
quantity is caused only by a change in price. Shifts occur when there are changes in influencing
factors other than price.
What are the key non price determinants of supply? - Answer✔Production costs and
technology
What are the key non price determinants of demand? - Answer✔Market size, consumers
disposable income, and consumers tastes/preferences
Describe market equilibrium - Answer✔The price at which quantity demanded equals quantity
supplied. the price at which the market clears and there is neither a shortage nor surplus
Describe market surplus - Answer✔Quantity supplied exceeds quantity demanded
Describe market shortage - Answer✔When demand exceeds supply
Describe a market bubble - Answer✔Product price becomes grossly inflated beyond its realistic
value primarily due to excessive consumer confidence
What is GDP? - Answer✔the market value of all final goods and services produced within a
country in a given period of time. Includes all consumer, government and business spending
plus exports less imports.
What is GNP? - Answer✔the total value of all finished goods produced by a country's citizens
wether physically located in its borders or abroad. GNP does not include income earned within
a country's borders by foreign residents.
Changes in economic activity are generally caused by? - Answer✔Seasonal changes, business
cycle, and secular trends
2|Page
, ©FYNDLAY 2025 ALL RIGHTS RESERVED 11:49 AM A+
What are the stages of a business cycle? - Answer✔Expansion, prosperity, peak, contraction,
recession, trough and recovery
Who is responsible for the Real Estate Act in Alberta? - Answer✔Minister of service Alberta
What happens in the expansion phase of a business cycle? - Answer✔Economy grows
Correct order of phases in a business cycle - Answer✔Expansion, prosperity, peak, contraction,
recession, trough, recovery
What are the costs of economic growth? - Answer✔Depleted natural resources, increases
inflation, increases environmental impacts
A commercial building has 4400 square meters of available office space for rent. By year end,
1200 square meters remains vacant. What is the vacancy rate? - Answer✔27.27
What are the physical characteristics of real estate? - Answer✔Unique, fixed, durable, scarce
The demand for office space is primarily the result of which of the following? -
Answer✔Increase employment in the services and financial sector
What are the types of real estate market? - Answer✔Balanced, buyers, sellers
Name of market type where supply exceeds demand? - Answer✔Buyers market
What are chattels what type of property? - Answer✔Personal property
The real estate act is what type of legislation - Answer✔Provincial
3|Page
, ©FYNDLAY 2025 ALL RIGHTS RESERVED 11:49 AM A+
Who is responsible for the real estate act - Answer✔Minister of Service Alberta
Generally speaking, the rules can be described as? - Answer✔Standards of practice for
licensees, affect day to day business of licensees, and can be established and amended by the
industry councils
What are the purposes of RECA - Answer✔Administer the act, set and enforce standards of
conduct for the industry and the businesses of licensees, protect
against/investigate/detect/suppress mortgage fraud, and to protect consumers affected by the
industry
Which of the following activities require a license from RECA: 1) a person soliciting property
listings or property management contracts from prospective clients 2) a non profit organization
or an employee leasing or renting of subsidized residential premises 3) a person collecting and
disseminating borrower information to lenders for financing real property 4) a person who
acquires or has any interest in real estate, who disposes of real estate owned by that person -
Answer✔1 and 3
What is needed to be authorized to trade in real estate? - Answer✔License and license
certificate
After printing your license certificate, what do you need to do next? - Answer✔Confirm his
license status on the RECA website
What does a green indicator on the RECA site indicate? - Answer✔Authorized to trade
If you transfer to a new brokerage and your status indicator on the RECA site is gray, what does
that colour mean? - Answer✔Not authorized to trade/pending
How many days do you have to join a brokerage after getting a license? - Answer✔365 from
day of licensing
4|Page
Alberta Real Estate Fundamentals Exam
Questions And Answers |Latest 2025 |
Guaranteed Pass
In common law what does the term real estate refer to? - Answer✔Land and fixed
improvements to the land
In common law what does the term real property refer to? - Answer✔Land, fixed
improvements to the land and intangible rights of ownership
Which of the following statements best describes the term "personal property"? - Answer✔A
movable item that can be removed from the property without causing damage to the property
Which industries are self regulated through RECA? - Answer✔Real estate, mortgage
brokerages, property management, condominium management
What are the factors of production? - Answer✔land, labor, capital, entrepreneurship
What is the Canadian economy referred to as? - Answer✔Mixed Economy of capitalist &
Socialist
What is quantity supplied? - Answer✔the amount of a good or service the market can offer at a
certain price
Define quantity demanded - Answer✔The amount of good or service that would be bought at a
certain price
1|Page
, ©FYNDLAY 2025 ALL RIGHTS RESERVED 11:49 AM A+
What causes movements and shifts in supply? - Answer✔Movements are when a change in
quantity is caused only by a change in price. Shifts occur when there are changes in influencing
factors other than price.
What are the key non price determinants of supply? - Answer✔Production costs and
technology
What are the key non price determinants of demand? - Answer✔Market size, consumers
disposable income, and consumers tastes/preferences
Describe market equilibrium - Answer✔The price at which quantity demanded equals quantity
supplied. the price at which the market clears and there is neither a shortage nor surplus
Describe market surplus - Answer✔Quantity supplied exceeds quantity demanded
Describe market shortage - Answer✔When demand exceeds supply
Describe a market bubble - Answer✔Product price becomes grossly inflated beyond its realistic
value primarily due to excessive consumer confidence
What is GDP? - Answer✔the market value of all final goods and services produced within a
country in a given period of time. Includes all consumer, government and business spending
plus exports less imports.
What is GNP? - Answer✔the total value of all finished goods produced by a country's citizens
wether physically located in its borders or abroad. GNP does not include income earned within
a country's borders by foreign residents.
Changes in economic activity are generally caused by? - Answer✔Seasonal changes, business
cycle, and secular trends
2|Page
, ©FYNDLAY 2025 ALL RIGHTS RESERVED 11:49 AM A+
What are the stages of a business cycle? - Answer✔Expansion, prosperity, peak, contraction,
recession, trough and recovery
Who is responsible for the Real Estate Act in Alberta? - Answer✔Minister of service Alberta
What happens in the expansion phase of a business cycle? - Answer✔Economy grows
Correct order of phases in a business cycle - Answer✔Expansion, prosperity, peak, contraction,
recession, trough, recovery
What are the costs of economic growth? - Answer✔Depleted natural resources, increases
inflation, increases environmental impacts
A commercial building has 4400 square meters of available office space for rent. By year end,
1200 square meters remains vacant. What is the vacancy rate? - Answer✔27.27
What are the physical characteristics of real estate? - Answer✔Unique, fixed, durable, scarce
The demand for office space is primarily the result of which of the following? -
Answer✔Increase employment in the services and financial sector
What are the types of real estate market? - Answer✔Balanced, buyers, sellers
Name of market type where supply exceeds demand? - Answer✔Buyers market
What are chattels what type of property? - Answer✔Personal property
The real estate act is what type of legislation - Answer✔Provincial
3|Page
, ©FYNDLAY 2025 ALL RIGHTS RESERVED 11:49 AM A+
Who is responsible for the real estate act - Answer✔Minister of Service Alberta
Generally speaking, the rules can be described as? - Answer✔Standards of practice for
licensees, affect day to day business of licensees, and can be established and amended by the
industry councils
What are the purposes of RECA - Answer✔Administer the act, set and enforce standards of
conduct for the industry and the businesses of licensees, protect
against/investigate/detect/suppress mortgage fraud, and to protect consumers affected by the
industry
Which of the following activities require a license from RECA: 1) a person soliciting property
listings or property management contracts from prospective clients 2) a non profit organization
or an employee leasing or renting of subsidized residential premises 3) a person collecting and
disseminating borrower information to lenders for financing real property 4) a person who
acquires or has any interest in real estate, who disposes of real estate owned by that person -
Answer✔1 and 3
What is needed to be authorized to trade in real estate? - Answer✔License and license
certificate
After printing your license certificate, what do you need to do next? - Answer✔Confirm his
license status on the RECA website
What does a green indicator on the RECA site indicate? - Answer✔Authorized to trade
If you transfer to a new brokerage and your status indicator on the RECA site is gray, what does
that colour mean? - Answer✔Not authorized to trade/pending
How many days do you have to join a brokerage after getting a license? - Answer✔365 from
day of licensing
4|Page
