ALBERTA REAL ESTATE FUNDAMENTALS REAL ACTUAL EXAM
2025/2026 STUDY QUESTIONS WITH CORRECT DETAILED ANSWERS
GUARANTEED PASS | RATED A+
Caleb McKoy is a real estate appraiser with CML appraisers . He has been asked to provide an
appraisal on a single family detached property in an established neighborhood . When Caleb
arrives on site , the seller provides him copies of an older appraisal with higher values and
pressurizes Caleb to use these values . What type of mortgage fraud is demonstrated in this
scenario ? - Answer>>> Inflated real estate appraisal
Which of the following are essential elements that must be present in a contract in order to make
it valid ? - Answer>>> Capacity, legal object, intent, consideration, mutual agreement, and free
will
RECA must be notified immediately when - Answer>>> Professional is disciplined in another
profession, professionals company is subject of a judgement, professionals company is subject to
bankruptcy proceddings
Mary Thomas is a real estate professional with Polaris realty. She signs a written service
agreement with her client to sell her property. Who is the relationship established between? -
Answer>>> The brokerage and the client
Changes in economic activity are generally caused by? - Answer>>> Seasonal changes, business
cycle, and secular trends
What type of organization is described by the following statement ? " Membership is mandatory
. The organization maintains items not covered by the municipality . However , each property
has a separate title . " - Answer>>> Home owners association HOA
Executive director will suspend or cancel a brokerage license when - Answer>>> Brokerage fails
to maintain/make available(for the purposes of review) proper records at the registered business
office, brokerage fails to immediately fund a trusts shortage as directed by executive director,
investigator or auditor employed by council is denied/restricted access to the registered business
office or to any or all of the records, and when broker exercises little or no authority
,What are the stages of a business cycle? - Answer>>> Expansion, prosperity, peak, contraction,
recession, trough and recovery
" If the contract has been discharged by breach , and the injured party has done part but not all of
what was promised under the terms of the contract , the injured party is entitled to the reasonable
value of services performed " . This describes which remedy for breach of trust ? - Answer>>>
Quantum meriut
Who is responsible for the Real Estate Act in Alberta? - Answer>>> Minister of service Alberta
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
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 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
Can you actively practice in multiple fields? - Answer>>> No
2025/2026 STUDY QUESTIONS WITH CORRECT DETAILED ANSWERS
GUARANTEED PASS | RATED A+
Caleb McKoy is a real estate appraiser with CML appraisers . He has been asked to provide an
appraisal on a single family detached property in an established neighborhood . When Caleb
arrives on site , the seller provides him copies of an older appraisal with higher values and
pressurizes Caleb to use these values . What type of mortgage fraud is demonstrated in this
scenario ? - Answer>>> Inflated real estate appraisal
Which of the following are essential elements that must be present in a contract in order to make
it valid ? - Answer>>> Capacity, legal object, intent, consideration, mutual agreement, and free
will
RECA must be notified immediately when - Answer>>> Professional is disciplined in another
profession, professionals company is subject of a judgement, professionals company is subject to
bankruptcy proceddings
Mary Thomas is a real estate professional with Polaris realty. She signs a written service
agreement with her client to sell her property. Who is the relationship established between? -
Answer>>> The brokerage and the client
Changes in economic activity are generally caused by? - Answer>>> Seasonal changes, business
cycle, and secular trends
What type of organization is described by the following statement ? " Membership is mandatory
. The organization maintains items not covered by the municipality . However , each property
has a separate title . " - Answer>>> Home owners association HOA
Executive director will suspend or cancel a brokerage license when - Answer>>> Brokerage fails
to maintain/make available(for the purposes of review) proper records at the registered business
office, brokerage fails to immediately fund a trusts shortage as directed by executive director,
investigator or auditor employed by council is denied/restricted access to the registered business
office or to any or all of the records, and when broker exercises little or no authority
,What are the stages of a business cycle? - Answer>>> Expansion, prosperity, peak, contraction,
recession, trough and recovery
" If the contract has been discharged by breach , and the injured party has done part but not all of
what was promised under the terms of the contract , the injured party is entitled to the reasonable
value of services performed " . This describes which remedy for breach of trust ? - Answer>>>
Quantum meriut
Who is responsible for the Real Estate Act in Alberta? - Answer>>> Minister of service Alberta
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
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 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
Can you actively practice in multiple fields? - Answer>>> No
