Unit 1-1: Overview of Real Estate

Question 1

The ACT

Answer 1

The Real Estate Act

Question 2

Authorization

Answer 2

License and registration certificate issued by RECA to trade in real estate in AB

Question 3

Bylaws

Answer 3

The Real Estate Act bylaws

Question 4

Council

Answer 4

Those individuals that work at RECA

Question 5

Industry Members

Answer 5

People licensed by RECA like mortgage brokers, real estate agents, appraisers

Must be licensed and registered with a brokerage

Question 6

Real Estate Professionals

Answer 6

People licensed by RECA to classes of real estate licenses (brokers, associate brokers, associates) with required education, knowledge, and experience

Residential, commercial, rural, property management

Question 7

REAP

Answer 7

Real Estate Associates Program

Question 8

RECA

Answer 8

Real Estate Council of Alberta

Question 9

Regulations

Answer 9

Regulations in the Act like exemptions and ministerial

Question 10

Rules

Answer 10

Rules made per the Act

Question 11

Real Estate

Answer 11

Land and fixed improvements to the land (buildings, fences, wells); must be in fixed location; aka fixtures

Question 12

Chattels

Answer 12

Personal property or moveable property and not part of the real estate

Question 13

Official real estate definition

Answer 13

Section 1(1)(u)

Real property;
Leasehold property; or
Repealed 2007;
A portable dwelling (not a holiday trailer or rec vehicle) used as residence and designed as such, attached to own chassis and running gear, can be towed, is on a residential site

Question 14

Industry professionals

Answer 14

Authorized by RECA in classes of real estate licenses; has education, knowledge, and experience for their license class

Question 15

7 Building Classifications: Residential

Answer 15

Dwellings with 1+ occupants; own, lease, rent buildings and land; urban or rural; detached house, townhouse, duplex, apartment, condo
(residential real estate)

Question 16

7 Building Classifications: Recreational

Answer 16

Buildings and land for leisure or 2nd residence; own, lease, rent; built alongside golf courses or lakes

Residential real estate

Question 17

7 Building Classifications: Commercial

Answer 17

Buildings for business use; lease or rent; inhabited during business hours

Office towers, corporate campuses; concentrated in specific area like a downtown
Satellite offices, employment centers

Question 18

7 Building Classifications: Industrial

Answer 18

Buildings for processing raw materials and manufacturing goods; storage of same.
Warehouses, factories, plants
Concentrated in industrial parks

Commercial real estate

Question 19

7 Building Classifications: Retail

Answer 19

Promote commerce for goods/services
Stores, shopping centres

Commercial real estate

Question 20

7 Building Classifications: Institutional

Answer 20

Buildings to serve public or private clients
Schools, labs, personal care facilities, gov’t, hospitals
Occupants can be residents or employees

Commercial real estate

Question 21

7 Building Classifications: Agricultural

Answer 21

Buildings used for production of food, goods
Farming, ranching, forestry
Barns, greenhouses, stables, cellars, coops, silos, processing facilities

Rural real estate

Question 22

4 Real Estate Sectors

Answer 22

Residential
Commercial
Rural
Property mgmnt

Question 23

Residential real estate

Answer 23

Per the Act, real estate used for residential purposes or intended for such, comprised of 4 or less premises (dwelling units within a residential property) 4+ = commercial license needed

Acreages, lake houses, cabins count

Sale of 1 property w/ up to 4 dwellings (more = commercial)
Single-family, duplex, triplex, fourplex, townhouse, condo, country, recreational, mobiles homes on residential zoned land

Question 24

New residential sales

Answer 24

New homes from builders
Can represent builder in sale, or property, or home buyer

Bona-fide employees of home builder don’t need authorization

Question 25

Residential resales

Answer 25

Sale of existing residential properties Know new and established neighbourhoods

Question 26

Condo sales

Answer 26

Each person holds title to a specific unit in the condo, and own interest in common property (hallway, landscaping, parking, roadways, rec facilities) Also exist in commercial, retail, and industrial Condo managers are not authorized right now but will be soon

Question 27

Rural residential sales

Answer 27

Acreages, vary in size and scope; primary residence

Question 28

Recreational property sales

Answer 28

Summer cottages, winterized residences as 2nd residences Condos, timeshares etc. Landuse bylaws important (wells, septic systems, wharfs, docks etc)

Question 29

Mobile home sales

Answer 29

aka Manufactured home Single-family dwelling that can be moved Situated in land lease communities (mobile home parks) Rent space to place home on; may provide water, sewer, electricity, gas, garbage, pools etc)

Question 30

Commercial real estate

Answer 30

aka Investment, commercial, and industrial (ICI) real estate Self explanatory

Question 31

Retail real estate

Answer 31

Products to consumers in street front, specialty, malls, urban ctrs, strip plazas etc. Retailers can buy own building and develop it Know economic and demographic data, traffic flows etc.

Question 32

Office real estate

Answer 32

Calgary has highest corporate head offices per capita in Canada; Edmonton has most prov/fed buildings Commercial sector

Question 33

Industrial Real Estate

Answer 33

Sale or lease of warehousing / manufacturing space Raw or serviced land to developers Next to highway interchanges, airports

Question 34

Investment real estate

Answer 34

Purchase, own, manage, rent, sell property to make a profit/portfolio Know finances, taxes etc.

Question 35

Rural real estate

Answer 35

Sale of farms, ranches, business ops for agricultural products, crops, livestock Sell farms or land

Question 36

Property Management

Answer 36

Admin ops and maintenance of property Building repairs, direct large complexes

Question 37

Residential Property Management

Answer 37

Duplexes, fourplexes, townhouses, apartments Senior retirement, public housing, mobiles Cooperatives

Question 38

Commercial Property Management

Answer 38

"Commercial" = non-residential, rental profit Office buildings, gov't properties, retail stores, service ops (gas station etc)

Question 39

Industrial Property Management

Answer 39

Warehouses, manufacturing quote, industrial plants, industrial parks