Reca Fundamentals Of Real Estate
Exam Prep Questions And Answers With
Verified Solutions (GRADED+)
Land - ANSWER✔✔ The ground & that which is beneath & above it
Real estate - ANSWER✔✔ land & fixed improvements to the land
Real property - ANSWER✔✔ land, fixed improvements & intangible rights of
ownership
Personal Property - ANSWER✔✔ Items that can be removed without damaging to
the the property
Surface rights - ANSWER✔✔ Rights assoctiaed with physcial ground (top layer of
land)
Supply - ANSWER✔✔ 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 - ANSWER✔✔ 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 - ANSWER✔✔ Occurs when the quantity supplied exceeds the
quanitity demanded at the current price
Market shortage - ANSWER✔✔ Occurs when the demanded exceeds the quantity
supplied at the current price.
Market bubble - ANSWER✔✔ 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 - ANSWER✔✔ 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 - ANSWER✔✔ The standard of practice for industry professionals
,The regulations: - ANSWER✔✔ 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 - ANSWER✔✔ the guideline that reca adopts for the governance &
other administrative functions
Written service Agreements - ANSWER✔✔ -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 - ANSWER✔✔ - Personal info protection act
- Personal info protection & electronics act of canada
Brokers delegation of responsibilities - ANSWER✔✔ - 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 - ANSWER✔✔ Anything advertised, communicated or offered by a
brokeage to the public for the purpose of attracting business to the brokerage
, Inducements - ANSWER✔✔ 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: - ANSWER✔✔ - Trust assurance fund
- Professional conduct review program
- Professional conduct proceedings program
Upon completion, the practice reviewer will: - ANSWER✔✔ - 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: - ANSWER✔✔ - 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: - ANSWER✔✔ - To gather all
relevant info in order to make an informed decision
- To treat all parties courteously, fairly & impartially
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