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HOW TO BECOME A REAL ESTATE AGENT IN ALBERTA?

Raman Gakhal of Alberta Real Estate School explains how to become a Real Estate Agent in Albetra with all the updated information.

How to Become a Real Estate Agent in Alberta or How to become a Realtor® in Alberta?– this is a very common question that is always asked. Alberta’s Starting a career as a Real Estate Professional in Alberta is very demanding these days process to get a clear picture of how your Real Estate Journey is going to start.

The Infographic below will show you the steps to become a Real Estate Agent in Alberta.

Now, let’s take a look at the each of the steps in the process in detail that one can follow to become a real estate agent and get their Real Estate License in Alberta.

There are 4 main steps to get started in your real estate career in Alberta. They are

STEP 1 : MINIMUM ELIGIBILITY REQUIREMENTS

The first step to becoming a Realtor® is to meet the minimum eligibility requirements. Before you can enroll into a Real Estate course, you have to get approval by RECA. They will check your eligibility requirements to see if you are eligible to actually enroll for the course. A person –

  1. Should be at least 18 years of age.
  2. Must be able to lawfully study or work in Canada.
  3. Must be able to provide specific government-issued identification
  4. Have a minimum of Canadian High School Diploma or equivalent.
  5. Must be proficient in English.

Education and English Language Eligibility

The basic eligibilities include Education and English language requirements categorized by RECA.

The Education requirements are again different for students with Canadian Education and students for International Education – which we have already discussed in our previous articles. Have a look up for those in the links provided if you haven’t already.

After that, comes the English language proficiency testing. There are slightly different set of steps for Proof of English Language Proficiency with Canadian Education and with International Education which can be found in the associated link.

Once you qualify with the Minimum Eligibility Requirements including the Education and English guidelines set by RECA, the next step is to complete a Career Information Session with RECA.

Complete a Career Information Session

The next step you must do is complete a Real Estate Career Information Session by RECA. It is a 10-minute video that gives you an overview about the career options that are available in the real estate industry within Alberta. It will guide you to choose the option that best suits you for real estate licensing.

Set up a myRECA Account 

You also need to set up an account with myRECA. myRECA is RECA’s educational platform that allows you to enroll for the Real Estate exams in Alberta. This account is free, it just takes a couple of minutes to set up. So, you would set up an account there and this is where you would start your eligibility application.

The option you want to pick there is called the Education Eligibility Application. They have a couple of different options in case of a person who has moved here from a different province, and they hold a license there, which is not the case for someone who is starting a brand new with the licensing.

Note: If you have moved from a different province, then you are basically transferring your license which is a different process altogether and is thus not covered in this blog. This is for anybody who is new to real estate, and they do not hold a real estate license anywhere else and they just want to start this process in Alberta.

Fees

Go to myRECA.ca and start the eligibility application. It will cost you a $100 fee. This is a non-refundable fee. Once paid, RECA will start your application process.

STEP 2 : PRE-LICENSING EDUCATION

The next step is to complete the pre-licensing education. Once you submit all the documents you get an approval from RECA. Only then you can enroll for your pre-licensing education to get a Realtor® License. You have to apply for a minimum of 2 courses with RECA in order to apply for the Pre-licensing Education.

1.    Fundamentals of Real Estate Course – Mandatory Course

This course gives you the foundational knowledge and skills that you would need to practice real estate in Alberta. The cost for this course is $1250. It’s an online course and you would register for this course online through RECA website.

The course fee will include access to your online course materials, and they also have a help desk in case you have problems accessing the course. You will also get access to the e-book online or you can purchase the course manuals from RECA. There are 2 (big) course manuals for the course. You can check out our the details for our extensively prepared Summarized Notes for this course from Alberta Real Estate School to get a good start in your exam preparation process.

There are 10 units in this Course. You will be required to do online activities and quizzes for each unit before you can appear for the final exam. Once you finish the units, you can take a practice exam and then write the final exam.

The exams can be taken at an authorized exam centres, they are not held at RECA. You can check out the list of authorized RECA Exam Centres for details. Currently, due to COVID-19, RECA is providing an option to take the exams online. You can book them directly though your myRECA account at myRECA.ca.

2.    Specialty Courses

The second course that you would do is in one of the specialty areas where you can choose which area you want to specialize in.

The different options are:

  1. Practice of Residential Real Estate 
  2. Practice of Commercial Real Estate
  3. Practice of Rural Real Estate
  4. Practice of Property Management

You must take one of these courses in order to get your Realtor® license in Alberta. You can always do more than one course, but initially, you need to start with one of courses from the list above.

Most people will start off with residential real estate, and then once they have their license and they want to expand their practice, they will go back and take more courses if they need to, so if you wanted to do property management or commercial real estate after, you can always come back and do that later.

The cost for each of the courses here is $800.

Total Duration

Between the 2 courses you get 12 months to complete the education requirements. Within 1 year from the date you enroll in the first course, you have to finish both of these courses.

In a nutshell, a total of 2 Courses and 2 Exams will conclude your Pre-licensing Education for Real Estate in Alberta.

STEP 3 : CERTIFIED CRIMINAL RECORD CHECK (CCRC)

Once you have completed your pre-licensing courses, the next step is to get a Certified Criminal Record Check (CCRC).

There are a couple of different types of criminal record checks, the one that you’re looking for is the one with fingerprinting. It takes a little bit longer, they have to send everything out to Royal Canadian Mounted Police (RCMP) in Ottawa and then you get the results.

Now it will take about two to three weeks for RECA to receive your results, and you can have the results sent directly to RECA. So you do not receive the results directly, but RECA does, which is a quicker process.

And if you already have a certified criminal record check which is within a period of six months, then you can still submit your application by using the same CCRC Account, you don’t need to redo it. Just keep in mind, the criminal record check has to be less than 6 months old.

STEP 4 : JOIN A BROKERAGE

To get a license, you have to be employed by a brokerage, otherwise you cannot just apply for a license.

I recommend you to talk to two or three different brokerages, see which brokerage fits your needs the best and go and sign up with them. Once you go to the brokerage, they will have you fill out an application which will then be sent to RECA and you will be able to get your license after that.

Once you get your License and are practicing Real Estate under a certified Brokerage, you have become a Successful Realtor® in Alberta!

Now, how does Alberta Real Estate School fit into all this?

RAMAN – “Being a Licensee myself, I know what are the obstacles one might face while in a position to pass the Alberta Real Estate Exam.”

1. STUDY GUIDES & MOCK EXAMS WITH SOLUTIONS

When you are going through the RECA course you will be given two big manuals for the first fundamentals course, and you will have a big hefty manual for the residential course as well. They are massive with no clear instructions on what is important to focus. The 70% mark is a tricky one to get through, especially in the Alberta Real Estate Exams as the questions are trickier than you expect.

Alberta Real Estate School specializes in offering focused, summarized notes that will focus on key areas that you will have on the exam. Our tutoring has helped many students clear the Alberta Real Estate Exams in the first attempt. Our theory of understanding the concept and giving point to point instructions about the important topics is exceptional.

We scrape out the excess unnecessary information and guide you towards the most relevant topics that you can expect in the exams. We will give you a chance to understand the concepts in a simpler and more effective way and give you personalized tutoring to make you confident about the topics.

Have a look at our list of Extensive Study Guides with Summarized Notes, Key Areas of Focus, and Sample Exam Questions:

Fundamentals of Real Estate – Study Guide
Residential Real Estate – Study Guide
Fundamentals & Residential Real Estate – Study Guide Bundle
Commercial Real Estate – Study Guide

2. PERSONALISED TUTORING

If you feel that you need more in-depth understanding of the real estate concepts, you can join us online or in-person. This way, we help you understand these concepts by discussing and explaining each one of them in detail. We can answer the questions that you may have, help you break down the concepts, and can also help you with assignments and unit quizzes if you are struggling with getting those correct.

Instead of going through the 500-page manual, our Condensed Guides are much smaller Study Guide where you will only focus on the information that you really need to know in order to prepare for your exam. You’re thus, not wasting your time on the areas that are not relevant for passing the exam. Eventually, you’ll be able to go through the material much quicker.

Have a look at our Personalized Tutoring Services offered for the following Courses:

Fundamentals of Real Estate – Training Program
Residential Real Estate – Training Program
Commercial Real Estate – Training Program

3. SPECIALIZED EXAM PREPARATION SESSIONS

We will help you prepare for your exams. Our most innovative tutoring techniques introduces a separate session before you attend the exam to help you revise the different key areas that you will need to focus on. We’ll go through sample questions and guide you through the procedure to attempt the exam.

We have Special Exam Preparation and Personal One-on-One Tutoring Sessions for Customized Topics to hold you in your most difficult time.

Real Estate License Focused Tutoring Package
Special Exam Preparation Training

When we are doing things on our own, it can be quite hard and maybe hard to motivate ourselves. So this is where Alberta Real Estate School is here to support you and help you get through this.

Our specialty is we provide quality education and tutoring that will guarantee to make you pass the Real Estate Exams in the First Attempt!

CASE STUDY

We had one of our students who was very concerned because she had not studied in a long time. She was doing a career change. Studying on your own with not a single classroom session is not easy. We helped her understand all the important topics by notes focusing on the key areas and other unimportant things scraped out and making multiple practice sessions and exam preparation sessions before attempting the exam. She received over 88% in all of her exams. She passed all three exams on her first attempt with good grades, and she was able to get through this process in three months. She did extremely well and today she is a successful Real Estate Agent in Alberta.  (We are proud of her!)

Join Alberta Real Estate School for expert help with understanding the concepts of Real Estate and getting uncommon and detailed tutoring sessions customized as per your needs. Get our personalized Notes designed to get you through the Real Estate Exams in the first attempt! You can become a Successful Real Estate Agent in Alberta with Alberta Real Estate School. Visit our list of Real Estate Tutoring Sessions for details.

If you have any doubts for Exam Preparation of any of the real estate courses or topics, reach out to us directly at 587.936.7779.

Our extensive expertise can help young applicants become successful Real Estate Agents and get break-through advice and exposure through our voice in the Real Estate Community of Alberta.

Check out our YouTube Channel and bookmark your Favourite Playlist!

You can also listen to the blog on our Podcast below. We hope you find this information useful. Happy Studying!

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Water Act and Water Rights in Alberta

Raman Gakhal of Alberta Real Estate School explaining the concept of Water Act and Water Rights in Alberta

The Government of Alberta has developed special laws and rights within the legislative constitution to protect water as a natural resource in Alberta. By maintaining sustainable use of the water in present times and conserving water for future generations, we can maintain a healthy environment for ourselves. To facilitate these goals, they introduced Water Act and Water Rights in Alberta.

This topic is important for aspirants who are preparing for the Alberta Real Estate Exams. RECA understands the importance of water as a natural resource and thus, believes in promotion of healthy water management practices and understanding to new Real Estate Agents.

Get a synopsis of the blog at the Video below –

WATER ACT

What is the Water Act in Alberta?

The Water Act is a legislative tool that supports and promotes the conservation and management of water in Alberta. With this statute, the Government of Alberta has committed to protecting existing good standing water rights and water resources for future generations. It recognizes the need for shared responsibility among all Albertans to ensure continued and viable economic growth and prosperity in Alberta.

The Water Act regulates the diversion of water from surface and groundwater sources by a variety of methods including statutory rights for household purposes, registrations for traditional agriculture uses, and licenses. Under certain circumstances, the Water Act may allow for certain diversions to be exempt (for example, firefighting) from licensing requirements. These exemptions are specified in the Water Act – Water (Ministerial) Regulation.

Why is the Alberta Water Act Important?

The Alberta Water Act governs how the Province of Alberta manages water. The purpose of the act is to promote the conservation and management of water while recognizing the need for economic growth and prosperity and flexible management that works cooperatively with governments of other jurisdictions. The water act governs the diversion, allocation, and use of water and regulates and enforces actions that affect water and water use management, the aquatic environment, fish habitat protection practices, and storm water management.

DEFINITIONS

Definition of Water and Water Body in the Alberta Water Act

The Water Act defines Water and Water Body as:

“Water” means all water on or under the surface of the ground, whether in liquid or solid state.

“Water body” means any location where water flows or is present, whether or not the flow or the presence of water is continuous, intermittent or occurs only during a flood, and includes but is not limited to wetlands and aquifers but does not include except for Section 99 “water body” that is part of an irrigation works if the irrigation works is subject to a license and the irrigation works is owned by the licensee, unless the regulations specify that the location is included in the definition of water body. This leads us to Water Rights.

WATER RIGHTS

What are Water Rights in Alberta?

Water Rights are also called as Riparian Rights. Riparian Rights give a landowner, whose property is adjacent to or crossed by a natural water resource, the right to access and make reasonable use of the water. Water rights are legislated under the Water Act in Alberta. All the Water bodies in Alberta are owned by the Alberta Government.

However, individuals have the right to use divert or disturb water. This can be done through an exception or with a license. Alberta Water Rights defines the maximum amount of water that is licensed for use. This makes us realize, there is a need of a Water License in such situations.

WATER LICENSE

In Alberta, one may require a License in certain uses of Water. The Government of Alberta issues the Water License to people who apply for the same. Water License runs with the land, which means when the property owner sells the property, the water license will automatically get transferred to the new landowner. Basically, it belongs to individuals who are physically present near the particular body which the license is issued for as they are the ones who are going to use that water body.

When is a Water License Required?

A Water License is required when you need to identify the following:

  1. Water Source
  2. Location of the diversion site
  3. Volume and Rate of Water
  4. Timing of the Water to be diverted
  5. Priority of the Water Right established by the License
  6. Any conditions the diversion must adhere to.

Water Uses that exempt from Licensing Requirements

There are certain uses of water that are exempt from water licensing requirements. They include the following:

  1. Domestic Household Use
  2. Traditional Agricultural Use
  3. Firefighting
  4. Wells equipped with Hand Pumps

Water Licensing Offenses

The Water Licensing Requirements under the Water Act of Alberta strictly adheres to the laws and enforcements listed in the Act. If someone is found guilty of not following the rules mentioned by the Act, it can be declared as a serious offence. It gives the right to the Alberta Government to take legal action against the person who committed the crime.

For Eg: Diverting Water without a License is a crime, and the offender may face Enforcement Action as well as a Fine which could go up to $50,000 for an Individual and $500,000 for a Corporate Identity.

SAMPLE QUESTIONS FOR WATER ACT IN THE ALBERTA REAL ESTATE EXAM

Example 1

Mary Ann is helping her clients by rural property. During her research, Mary Ann finds out that the owner of the property has diverted groundwater without having received authority from the Alberta Government. According to the Water Act, what does the property owner need in order to be able to divert water?

  1. Water Permit
  2. Water Agreement
  3. Water License
  4. Water Easement

The correct answer is 3.

Example 2

Sue Hill is helping her clients John and Mary Jones purchase a small Agricultural Farm. They want to ensure they are able to use the water diversion the previous owner has in place. What should sue tell them about the water license?

  1. They will have to purchase the water license separately from their previous owners
  2. They will need to Apply for the Water License from Alberta Government
  3. They will need to buy the Water License from someone who’s selling it
  4. Water License runs with the Land

The correct answer is 4.

Example 3

Which of the following uses are exempt under Alberta Water Act?

  1. Domestic Household Use
  2. Traditional Agricultural Use
  3. Firefighting
  4. Wells equipped with Hand Pumps
  5. All of the above

The correct answer is 5.

Keen to learn about other Real Estate Topics, say –

Misrepresentation

Join Alberta Real Estate School for expert help with understanding the concepts of Real Estate and getting uncommon and detailed tutoring sessions summarized as per your needs. Get our personalized Notes designed to get you through the Real Estate Exams in the first attempt! Visit our list of Real Estate Tutoring Sessions for details.

If you have any doubts for Exam Preparation of any of the real estate courses or topics, reach out to us directly at 587.936.7779.

Happy Studying!

You can also listen to this article in the podcast above. We hope you found this information useful. Stick to us for more updates.

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What to Expect in the Mortgage Brokerage Exam in Alberta?

Raman Gakhal of Alberta Real Estate School asking with a smile, what to expect in the Mortgage Brokerage Exam in Alberta.

If you are preparing for your Mortgage Brokerage Exam in Alberta and wish to become a Licensed Mortgage Broker in Alberta, one of the biggest questions you must be pondering on would be – What to expect in the Mortgage Brokerage Exam in Alberta? So, we have something for you!

We are here to tell you everything you need to know before appearing for the Exam – from the Types of Questions and Number of Questions you can expect to Updated Exam Weightings for the Mortgage Brokerage Exam as well as Time Management Tips to Pass the Mortgage Brokerage Exam in the first attempt. With the help of our advice and suggestions, you can give your best shot!

INFORMATION ON THE MORTGAGE BROKERAGE EXAM IN ALBERTA

1. Exam Format

The format of the Mortgage Brokerage Exam is completely Digital – Computer-based. It is taken entirely on a Computer and there is no need for any hand-written content to complete the exam. Please note that it is NOT an Online Exam as some COVID-related rules have been lifted. Although, it was conducted online for a while when the restrictions were in place. But as of Sept 2021, the Exam has to be taken at the RECA-Approved Exam Centres nominated for each of the applicant. When you apply for the exam through your RECA portal, you can see the exam centre that is nominated to you by RECA and visit the centre on your exam day to attempt the exam.

2. Total Number of Questions

The total number of questions that you can expect in the Mortgage Brokerage Exam in Alberta would be 100.

3. Question Format

All the questions that you will get in the exam will be MCQs or Multiple-Choice Questions.

4. Exam Duration

The total duration of the exam is 3 Hours.

5. Passing Criteria

In order to pass the exam, you have to score a minimum of 70% i.e., 70 correct answers out of a total of 100 Questions in the exam. In other words, the passing marks for the exam is 70 marks.

6. Results

The beauty of this exam format is it gives you Instant Results once you are done with all the questions. As soon as you complete all the questions, you get the result of Pass or Fail right away on your Computer Screen. This way you don’t have to wait worrying about them for a long time. In addition to this, for your benefit, the results give a summary of your overall performance in the exam based on individual units of each of the courses. Although, it will not specify your performance on particular questions, but it will give you a synopsis of your performance unit-wise.

7. Total Number of Attempts

There are a total of 2 Attempts given in order to clear the Mortgage Brokerage Exam. If you fail to clear the exam in the first attempt, you have a second attempt available. Again, a plus point is that you can give the 2nd attempt as soon as 24 hours after completing your exam. This gives you the flexibility to appear for the exam sooner when you are still in that exam preparation mode. 

Note:
If you fail in both the attempts and are not able to clear your exam, you will have to re-apply for your Courses with RECA by paying the fees again and then repeat the whole process again. It is thus, better to prepare for the Mortgage Brokerage Exam properly to ensure you don't have to take this route and pay double RECA Fees.

Now, its good to know all the information about appearing for the Exam, but the question remains – How to Pass the Mortgage Brokerage Exam in Alberta? What is the strategy??

Well, let’s look in to it.

STRATEGY TO PASS THE MORTGAGE BROKERAGE EXAM IN THE FIRST ATTEMPT

1. Education Requirements

In order to become a Licensed Mortgage Broker in Alberta, you will have to enroll in the Mortgage Associates Program (MAP) issued by the Mortgage Licensing body of Alberta – Alberta Mortgage Brokers Association (AMBA).

The MAP consists of 2 Courses – Fundamentals of Mortgage Brokerage Course & the Practice of Mortgage Brokerage Course. MAP costs $2,800 and you must complete the program within 1 year.

2. Types of Questions you can expect on the exam

A. Definition Questions

These questions will relate to any kind of term that they can ask you to define. So, they can either give you a term to define and they will ask you for the definition of that term or they can give you a definition and they will ask you what term that describes. For example, concepts like Mortgage Broker, Amortization Period, Closing Costs, Closed Mortgage, CMHC, etc. These are all the terms that we need to understand as Mortgage Brokers, and they can ask you to describe these terms on the exam or they can ask you what this sentence describes. Definition Questions are very common and one should definitely be prepared for these type of questions.

B. Scenario Questions

One of the most difficult types of questions to expect in the Alberta Mortgage Brokerage Exam would be scenario or situational questions. Scenario questions basically ask you who, what, when, where or why of any situation. So, they will give you a scenario and based on that, you will have to answer the given question. These types of questions are best answered by understanding the concepts. So here, we are not trying to memorize a term, but we must go deeper and really understand the concept so that we can answer these types of questions.

C. Math/Calculation Questions

There will be some Math-related Questions in the Exam. The first course (Fundamentals) will not have a lot of math questions whereas, the second course (Practice) has comparably more calculative topics than the first course.

3. Exam Weightings

The Course content for the Mortgage Brokerage is divided based on Units. Unit-wise distribution is important and helpful as it categorizes the content based on various sub-topics and gives a clear idea of each of the topics in detail. It is also important from the exam perspective because AMBA prepares questions based on essential sub-topics i.e., Units. Thus, there are some units that are more important from an exam preparation view.

For instance, in the Fundamentals of Mortgage Brokerage Course, the following table shows the exam weightings for each of the units along with the number of questions that can be expected from each of them. Have a look –

4. Time Management Tips for the Exam

Now, there are 3 hours to complete the exam and a total of 100 questions. This means that you can spend less than 2 minutes per question on an average, in order to attempt all the questions and complete the exam on time. We recommend to defer the questions that you may feel difficult and keep them for the end to prioritize easy questions. This will help you save time and give you more time to think for questions that are difficult and time-consuming.

Alberta Real Estate School is here to help you guide in the smallest of doubts and the biggest of questions that you can ask for. Get to know –

How to qualify for a Mortgage Brokerage License Application in Alberta?

Join Alberta Real Estate School for expert help with understanding the concepts of Real Estate and getting uncommon and detailed tutoring sessions summarized as per your needs. Get our personalized Notes designed to get you through the Real Estate Exams in the first attempt! Visit our list of Real Estate Tutoring Sessions for details.

If you have any doubts for Exam Preparation of any of the real estate courses or topics, reach out to us directly at 587.936.7779.

Happy Studying!

You can also listen to this article in the podcast above. We hope you found this information useful. Stick to us for more updates.

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TYPES OF INSURANCE FOR REALTORS®

Raman Gakhal smiling along a title that says Types of Insurance for Realtors® in Alberta.

There are different classes and types of insurance for Realtors® that they can take to protect themselves from risks and threats. The reason being, real estate agents are professionals and have a business entity of their own. Apart from their personal identity, they are owners of their real estate business. This separates their personal duties and professional duties from each other. They have to manage their professional duties and goals separate than that of their personal ones.

Now, when it comes to a business entity, it will obviously have its own needs and requirements along with its own risks. Just like we ensure the safety and well-being of our personal belongings and assets, we, as real estate agents need to ensure the safety of our business as well. Managing Professional Risk is the reason we have Business Insurance for our profession of Real Estate. Take a look at the video –

The Real Estate Business can have multiple types of risks involved at every stage. To cover all the stages, we have different types of Real Estate Insurances that agents can get covered with. This helps them manage their real estate business against various types of risks. There are 4 major types of Insurance for Realtors® involved with their own specific coverage limits –

1. Home-Owner’s Insurance

Home-Owner’s Insurance is the most basic insurance policy for your real estate business. Every business owner needs basic tools and equipment requirements to run a business. Thus, this insurance covers all those basic needs and necessities needed for a smooth and normal functioning of your real estate business. You, as a Real Estate Agent will require some common mechanisms to run your real estate business.  

This insurance is named as Home-Owner’s Insurance because as a Real Estate Agent, your own a business of Real Estate Agency. Thus, this insurance is the Home Insurance for your business.

The real estate business, like every other business will need common electronics and equipment on a day-to-day basis. This will include Laptop/Computer and related accessories, Cell Phones, Printers, Fax Machines, Scanners, etc. These tools are expensive and does require a good amount of capital. Thus, the home-owner’s insurance for real estate is necessary for a real estate business to protect these possessions against damage, theft, and other threats.

A Standard Policy of Home-Owner’s Insurance may not provide enough coverage for all the equipment that one may need as a Real Estate Agent. Thus, generally, agents consider insurance plans with additional features that covers all their belongings.  

2. Vehicle Insurance

The second and most common type of insurance for real estate agents is Vehicle’s Insurance. The Vehicle’s Insurance in Real Estate covers the vehicles of Real Estate Agents against threats during professional use. The most basic job role of a Realtor® is to search for properties and showcase their research to clients as per their needs and requirements. Their role also includes dealing with clients and other parties involved in a property deal on a frequent and almost regular basis. This will need lots of transit for meetings and in-person communication, which in-turn will require means of transport.

There is a difference in insurance coverage for Personal vs Business use of a Vehicle. When you (a Real Estate Agent) have a vehicle and you use it for personal as well as business use, you will have to get an extended coverage for your vehicles to include the business use in addition to your personal use. If you fail to do so, your claims made during the business use of the vehicle (E.g., Going for a meeting with a lawyer in regard to a property deal for a client), it may be denied under your regular Personal Vehicle Insurance Policy.

A vehicle insurance is also crucial because it has a higher potential for claims as there can be multiple parties involved. For E.g., if you are taking your client in your vehicle to show a property and you get in a major accident, there will be multiple claims as your client is also involved in the accident.  

3. Comprehensive and General Liability Insurance

This insurance provides broad coverage for claims of bodily injury and damage to property of others, i.e., Civil Liability. While conducting business duties, if you damage or harm other parties or properties of other parties (third parties), this insurance will cover that.

As other parties are involved in such cases, there may be legal charges and costs that have to be incurred by law to complete the claim. This insurance, therefore, covers legal defense costs of the insured (Eg: Lawyer Fees), if the matter is within the scope of the policy.

Situations and Conditions that fall under the Comprehensive and General Liability Insurance Policy:

  1. Slip and Fall: If the client gets in accident (like a slipping in or falling/injuring themselves in the location of a property site, it would fall under the Real Estate Business Insurance of Comprehensive and General Liability Insurance Policy). The reason being, it is an accident that took place in the location of a business deal and not a private property of either the real estate agent or the client.
  2. Burglary or Vandalism: If there is a situation of burglary or vandalism in any of the properties that is shown by the agent to its client, that property is still not owned completely by any of the parties. So, the business insurance of comprehensive and general liability will cover that.
  3. Fire or Smoke Damage: If the show property gets damaged by a fire accident, it will be covered by this policy.
  4. Water Damage: If the show property is damaged by a water-related accident, then it is still under the coverage of this policy.
NOTE:
Civil Liability Errors from real estate agents in case of real estate transactions are situations that DO NOT FALL under Comprehensive and General Liability Insurance Policy. This includes errors and omissions from a Real Estate Agent, that resulted in damage to other parties (clients, lawyers, etc.) or their properties. These types of errors will be covered under a separate policy but do not fall under Comprehensive and General Liability Insurance Policy of the Real Estate Agents.

4. Professional Liability Insurance

As real estate agents, we can commit errors. Thus, this is the Errors and Omissions Insurance that covers errors of a Real Estate Agent while dealing with real estate transactions in the business. The Professional Liability Insurance in Real Estate is slightly different than the others because it is provided through REIX (Real Estate Insurance Exchange) which is ultimately governed by RECA (The Real Estate Council of Alberta). The dues of this insurance are payable yearly with RECA fees (charged to real estate agents) on Sept 30th of every year.

So, theses are the various types of insurance policies that a Real Estate Agent can take to manage their risks as a Professional Real Estate Agent.

Want to know about other Major Expenses after becoming a Real Estate Agent in Alberta?? Here’s something for you –

TOP EXPENSES AS A REAL ESTATE AGENT

Join Alberta Real Estate School for expert help with understanding the concepts of Real Estate and getting uncommon and detailed tutoring sessions summarized as per your needs. Get our personalized Notes designed to get you through the Real Estate Exams in the first attempt! Visit our list of Real Estate Tutoring Sessions for details.

If you have any doubts for Exam Preparation of any of the real estate courses or topics, reach out to us directly at 587.936.7779.

Happy Studying!

You can also listen to this article in the podcast above. We Hope you found this information useful. Stick to us for more updates.

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