Page | 1
RECA FUNDAMENTALS EXAM 2025/2026
BRAND NEW QUESTIONS WITH ANSWERS|
ACE YOUR GRADES!
Esstopel insurance - correct answer -signed statement regarding
finances
Annual general meetings - correct answer -- must be held within
15-months of last one
Condominium plans - correct answer -- condominium only exists
once plan has been created and registered with alberta land titles
Conventional plans
- first type identified in condominium property act
- most commonly registered
- units are defined with structure
bare land condo plans
- units are parcels of land
- boundaries defined by width and depth
, Page | 2
barely blended condo plans
- divides bare land units into smaller units
-boundaries defined by space within structure
Value Types - correct answer -Subjective Value
- emotion, value in the mind of buyer/seller
Objective Value
- cost of creation, value as determined by cost
Value in Use
- $terms, value expressed in monetary terms
Investment Value
- financial goal, value to investor based on their financial goals
Operational Value
- Value in conjunction with an ongoing business
Insurable Value
- claim value, in terms of insurance policies/claims
, Page | 3
Assessed Value
- taxation, value for purpose of tax reasons
Market Value
- Property value, expected value
1. Principal of Balance - correct answer -value is created and
sustained where there is equilibrium
2. Principal of Change - correct answer -economic, political, and
social forces are constantly in play and contribute to the dynamic
nature of property values
3. Principal of Competition - correct answer -excessive profits
breed opportunities which then tend to destroy those profits
4. Principal of Consistent Use - correct answer -when improved
land is in transition to another highest and best use, one use
cannot be allocated to the land and another allocated to the
building
, Page | 4
5. Principal of External Factors - correct answer -various factors
beyond the property itself can impact its value and these factors
may include economic, political, social and physical issues
6. Principal of Increasing/decreasing return - correct answer -
capital improvements add value to a property to a certain point
7. Principal of Surplus productivity - correct answer -factors of
production that generate net income, which is then attributed to
the land and tends to set the value
8. Principal of Supply and Demand - correct answer -market value
is determined by the interaction of market forces such as the
quantity of available properties and the interest of buyers able to
purchase them
9. Principal of highest and best use - correct answer -considers
legal permissibility, physical possibility, financial feasibility and
maximum productivity
RECA FUNDAMENTALS EXAM 2025/2026
BRAND NEW QUESTIONS WITH ANSWERS|
ACE YOUR GRADES!
Esstopel insurance - correct answer -signed statement regarding
finances
Annual general meetings - correct answer -- must be held within
15-months of last one
Condominium plans - correct answer -- condominium only exists
once plan has been created and registered with alberta land titles
Conventional plans
- first type identified in condominium property act
- most commonly registered
- units are defined with structure
bare land condo plans
- units are parcels of land
- boundaries defined by width and depth
, Page | 2
barely blended condo plans
- divides bare land units into smaller units
-boundaries defined by space within structure
Value Types - correct answer -Subjective Value
- emotion, value in the mind of buyer/seller
Objective Value
- cost of creation, value as determined by cost
Value in Use
- $terms, value expressed in monetary terms
Investment Value
- financial goal, value to investor based on their financial goals
Operational Value
- Value in conjunction with an ongoing business
Insurable Value
- claim value, in terms of insurance policies/claims
, Page | 3
Assessed Value
- taxation, value for purpose of tax reasons
Market Value
- Property value, expected value
1. Principal of Balance - correct answer -value is created and
sustained where there is equilibrium
2. Principal of Change - correct answer -economic, political, and
social forces are constantly in play and contribute to the dynamic
nature of property values
3. Principal of Competition - correct answer -excessive profits
breed opportunities which then tend to destroy those profits
4. Principal of Consistent Use - correct answer -when improved
land is in transition to another highest and best use, one use
cannot be allocated to the land and another allocated to the
building
, Page | 4
5. Principal of External Factors - correct answer -various factors
beyond the property itself can impact its value and these factors
may include economic, political, social and physical issues
6. Principal of Increasing/decreasing return - correct answer -
capital improvements add value to a property to a certain point
7. Principal of Surplus productivity - correct answer -factors of
production that generate net income, which is then attributed to
the land and tends to set the value
8. Principal of Supply and Demand - correct answer -market value
is determined by the interaction of market forces such as the
quantity of available properties and the interest of buyers able to
purchase them
9. Principal of highest and best use - correct answer -considers
legal permissibility, physical possibility, financial feasibility and
maximum productivity
