ALBERTA REAL ESTATE
FUNDAMENTALS|| 100% CORRECT
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
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
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
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 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
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
If you do not complete your criminal record check within 12 months of completing the
program you must... - ANSWER-Retake the REAP program and meet all other
requirements of a first time applicant
If away from the industry for 36 months, what must you do - ANSWER-Complete
required licensing education and meet all other first time applicant requirements
When do licenses need to be renewed? - ANSWER-September 30
Can you be qualified in multiple fields? - ANSWER-Yes
FUNDAMENTALS|| 100% CORRECT
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
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
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
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 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
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
If you do not complete your criminal record check within 12 months of completing the
program you must... - ANSWER-Retake the REAP program and meet all other
requirements of a first time applicant
If away from the industry for 36 months, what must you do - ANSWER-Complete
required licensing education and meet all other first time applicant requirements
When do licenses need to be renewed? - ANSWER-September 30
Can you be qualified in multiple fields? - ANSWER-Yes
