Alberta Real Estate Fundamentals ACTUAL exam: QUESTION AND ANSWERS UPDATED 2025

Alberta Real Estate Fundamentals ACTUAL
exam: QUESTION AND ANSWERS
UPDATED 2025

ALBERTA REAL ESTATE FUNDAMENTALS – PRACTICE EXAM
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Time Allowed: 90 Minutes (simulated)
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Questions: 50 Multiple Choice cx cx cx




1. Which of the following best defines "Real Property" under Alberta law?
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a) The physical land and the buildings attached to it.
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b) The physical land, buildings, and all movable personal property within.
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c) The land, improvements, and the legal rights associated with owning them (bundle of rights).
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d) Only the surface rights of a parcel of land.
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2. An owner possesses a property outright with no time limit on their ownership. This is k
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nown as a: cx cx




a) Leasehold Estate
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b) Life Estate
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c) Fee Simple Estate
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d) Easement
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3. An encumbrance is defined as:
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a) A right to possess the property.
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b) A third-party right or claim against a property that does not prevent the transfer of title.
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c) A restriction that prevents the owner from selling the property.
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d) The physical boundaries of the property.
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4. A right of way that allows a utility company to run power lines across a private propert
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y is an example of a(n):
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a) Profit-à-prendre
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b) Easement
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c) Restrictive Covenant
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d) Mortgage
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, 5. Which of the following statements regarding a Caveat is TRUE?
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a) It is proof of ownership.
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b) It is a statutory right of way.
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c) It is a notice registered on title that warns of an unregistered interest in the land.
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d) It is a form of financing used to purchase the property.
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6. Under the Land Titles Act (Alberta), the Torrens System is used. What is the primary pur
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pose of this system?
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a) To ensure the government has first right of refusal on all land sales.
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b) To guarantee the accuracy of the land survey.
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c) To provide a guaranteed, government-backed record of land ownership.
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d) To calculate property taxes for the municipality.
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7. The legal document that transfers ownership of land from the vendor to the purchaser i
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s called a:
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a) Caveat
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b) Mortgage
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c) Land Transfer Tax Form
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d) Transfer of Land (or Deed)
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8. If a property is subject to a "Right of First Refusal," this means:
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a) The current owner must sell the property to the government first.
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b) The current owner must offer the property to a specific party before selling it to a third party.
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c) The property must be listed on the MLS system for a minimum of 30 days.
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d) The buyer has the right to inspect the property at any time.
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9. A purchaser buys a home in a new subdivision. The developer has registered a restrictiv
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e covenant stating that "only single-family dwellings may be built." This covenant:
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a) Is illegal in Alberta and cannot be enforced.
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b) Runs with the land and binds future owners.
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c) Only binds the original purchaser, not future owners.
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d) Automatically expires after 10 years.
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