Unit 1 RECA Exam Questions and Answers (Graded A)

Unit 1 RECA Exam Questions and Answers (Graded A) Define real estate -Answer-refers to land and fixed improvements to land (permanent) What are the building classifications -Answer-Residential Commercial Retail Institutional Agricultural Real Estate Sectors/Property Types -Answer-Residential commercial rural property management characteristics that identifies real estate as limited resource -Answer-scarce characteristic that defines real estate as indestructable -Answer-durable real estate as immobile -Answer-fixed parcels of land being different from eachother -Answer-unique characteristics that describe how transactions are handled between buyer and seller -Answer- private charactersitics that identifies the slow response of these 2 market forces -Answer-supply and demand identifies the inability to market properties for all areas of real estate in a universal approach - Answer-standardized real estate occuring in a defined area -Answer-local charactersitcs of economic growth -Answer-natural resources capital rate of savings tech progress real estate effects the economy -Answer-housing starts real estate sales building permits issued vacancy rates and occupancy rates factors of production -Answer-land, labor, capital, entrepreneurship non price determinants of supply (CSENP) -Answer-costs of production state of techology expectations of producers number of supplies to the market government taxes and subsidies non price determinants of demand (CACCP) -Answer-consumers expectations available credit consumer disable income consumer tastes and preferences price substitutes or comprementary product changes in economic activity -Answer-seasonal fluctuations business cycles secular trends types of real estate market -Answer-balanced market buyers market sellers market market bubble -Answer-prolonged and self sustaining accelerlation in real estate, combined with construction agressvie lending and economic growth bubble burst -Answer-rise in interest rates, and real estate prices decreases to more realistic levels resource market -Answer-facilitate exchange of land labour capital and entrepenuership steps to bubble bursting -Answer-economy expands wages rise unemployment falls real estate prices acclerate construction boom rising interest rates BUBBLE BURSTS demand for housing decreases Real estate prices plumet property owners left with overvalued asset some households unable to pay off debt the real estate council of alberta -Answer-is the independent non-government body responsible for governing industry professionals in the real estate, mortgage brokerage and real estate appraisal indsutries self regulation -Answer-is the process by which the governmet transfers delegates regulatory authoirty and responsibility to an organization real estate act -Answer-recs governs industry professionals under albertas real estate act minister of service alberta -Answer-represents the provincial government in matters related to the act provincial legislature -Answer-the only thing that can amend the act professional conduct reviews -Answer-conducted by RECA when a complaint is received regarding an industry memebers failure to follow the standards of business practice what is RECA's mandate -Answer-protect consumers and to provide services that enhance and improve the industry and the business of industry professionals what type of property are chat -Answer-property not affixed to the land these are conducted by reca when a complaint is received regarding an industry members failure to follow the standard of business practice -Answer-professional conduct review what is recas mission -Answer-builds consumer trust and confidence in the industry recas council -Answer-establishes the policies that guide reca in the fulfillment of its mission what are audits -Answer-refer to the periodic inspection of a real estate brokerages financial records and books what does the executive producer do -Answer-provids information, advice and support to the council and is responsible for day to day operations of