Fundamentals of real estate exam prep|2023 LATEST UPDATE|GUARANTEED SUCCESS

Land The ground & that which is beneath & above it Real estate land & fixed improvements to the land 00:35 01:34 Real property land, fixed improvements & intangible rights of ownership Personal Property Items that can be removed without damaging to the the property Surface rights Rights assoctiaed with physcial ground (top layer of land) Supply The quantity supplied is the amount of good or service the market can offer at a certain price. Production costs, technology, Producer expecations, Number of suppliers , government taxes & subsides. Movements along the supply line occur when a change in quatity supplied is is caused only by change in the price. Shifts in the supply line occur when theres a change in an influencing factor other than price. Demand Refers to the quantity of a good or service that would be bought at a certain price over a period of time. THe key non price deterient of demand - chnage in market price - Change in consumer expectations Change it availibility of credit - Change in consumers disposible income Movements along the supply line occur when theres a change in price of the product of the product or service which leads to quantity demanded Shofts in demand line occur when there is change in an influencing factor other than price market surplus Occurs when the quantity supplied exceeds the quanitity demanded at the current price Market shortage Occurs when the demanded exceeds the quantity supplied at the current price. Market bubble Temporary situation in the business cycle where prices for a product becomes overflated beyond its realistic value due to excessive consumer confidence. Real estate act Is a provincial legislation. Establishes the framework for self regulation of the RE, mortgage brokerage & RE apprasials in AB. It can only be amended by the provincial legislature. The rules The standard of practice for industry professionals 00:02 01:34 The regulations: The amendments or interpretations to sections of the act & are made by the minister of service alberta or by the lietenant govenor in council The bylaws the guideline that reca adopts for the governance & other administrative functions Written service Agreements -Outlines the roles & responsibilities of the parties -Clarifies the expectations of each party - Helps to ensure that the relationship betweeen the industry professional & client is understood Privacy legislation - Personal info protection act - Personal info protection & electronics act of canada Brokers delegation of responsibilities - Details of the delegation must be clear & in writing - The particulars must be agreed to & understood by the broker & the delegate - Must be communicated to the brokerage employees & associates - Delegate must be qualified to carry out the delegated responsibilities - Broker must monitor the delegate & verify that adequate supervision is being maintained Incentives Anything advertised, communicated or offered by a brokeage to the public for the purpose of attracting business to the brokerage Inducements Anything that is offered or provided by the brokerage to pursaude a person to enter into a particular real estate or mortgage transaction Professional standards are responsible for: - Trust assurance fund - Professional conduct review program - Professional conduct proceedings program Upon completion, the practice reviewer will: - A verbal agreement of the practice review results - A written summary of the practice review findings - Reccomendations for improvement - Ongoing support, should the broker require it, after the practice review is completed Practice review outcomes: - minor breaches are found in most practice review practice reviews & market for follow up - Serious cases of conduct deserving of sanction are sent for professional conduct review - Potential breaches of the reca online licnesing system are sent to the office of registrar 3 main objectives of professional conduct review: - To gather all relevant info in order to make an informed decision - To treat all parties courteously, fairly & impartially - To gather info efficiently Examples of deserving of sanction - Misconduct in another profession - Deframing or harming the reputation of a client - Participating in illegal activity - Destroying documents - Threatening consumers Professional conduct review outcomes: - Advisory note ( is for a technical breach) - Letters on reprimend (issued when there is a conducrt desvering of sanction) - Hearings (may be held when the breach are more severe) - Temporary Suspension (When the conduct is a serious nature) Ethics are a voluntary set of conduct rules, values & beleifs that guide an individuals behaviour Utalitarian Ethics: Promotes actions that maximizing others welfare while reducing harm or injury Duty Based Ethics: Focus on the intention behind the individuals actions as opposed to the consequence Influences on the ethics & professional conduct - Canadian Law - Industry ethics - Brokerage ethics - Personal ethics Competition Act Competition Act: Main purpose is to maintain & encourage competition in Canada - Promostes the efficiency & adaptability of the Canadian law - Helps Canadian complanies participate in world markets Competition Law: Conspiricies among competitors are anti competitive agreememts intended to restrict intended to restcrict trade through unfair business practice. EX - Price fixing - Market division - Service restriction - Service refusal Money laundering: Process of making large amounts of money from illegal sources. - To convert the proceeds of crime into less suspicious forms - To conceal the criminal origins & ownership of the funds - To create legitimate explanations for the sources of the funds 5 D's of role clarity & consistency 5 D's of role clarity & consistency 1. Discuss 2. Determine 3. Document 4. Disclose 5. Do Benefits of role clarity & consistency: 1. Complies w/ the regulatory requirements 2. Enhances image of the rep 3. Prevents unintended RE relationships 4. Clairifies responsibilities owed to the consumer 5. Clarifies services to be provided to consumer 6. Reduces disputes with the REP Representation relationships: In any agency relationships, the third party being represented by another party is known as the principal - An agent is the party acrting on behalf of the principals behalf - Client = principal - Customer= third party Fundamental principlles of fiduciary Duties - Trust & confidence- The client places trust & confidence in the REP & relies on their advice - Best interests:- The REP always must act in the clients best interest - Loyalty- A REP must always be loyal to the client & place the clients best interest their own Implication Implied by the conduct of the parties involved Ratification When an agent acts without authority or in excess of the authority granted Estoppel when a principal acts in a way that leads a third party to believe that an agent has been given authority to act on behalf of the principal Operation of law- - When an agent takes immediate action to save the property or prevent imminent danger to a principal.