Career Options as a Broker

Raman Gakhal, CEO of Alberta Real Estate School explaining briefly the extensive career options you can have as a Real Estate Broker in the Alberta Real Estate Industry.

Real Estate Markets have been booming above every other market, in general, because of high valuations of the product it offers. There is always a high demand for its products which gives opportunities for sellers to create a bigger market and serve the never-ending thirst for real estate properties. (Real Properties may be defined differently than you usually hear. Have a look at our Term of the Day) The ever-increasing demand leads to a surge for career options as a broker (or any other member) in the real estate industry.

Just like any other market, property markets also have various elements and hierarchies involved to manage the business in the most efficient way possible. Different authorities perform different duties to serve their best to the real estate industry. Here are some of the best career options you can look for as a broker or any other member if you are involved in the real estate business.

WHO IS A REAL ESTATE BROKER?

To understand the topic of Brokerage, we first need to understand who a Real Estate Broker is and how is he different from regular Real Estate Agents.

The broker is the leader of the brokerage firm.
Real Estate Agents work under the management of the Broker.
The broker is responsible for making sure that all the activities of the brokerage comply with the Real Estate Act.
The broker could be the owner of the brokerage, or it could be somebody who is managing the brokerage on behalf of the owner.
Each brokerage can only have 1 broker.

Qualifications to Become a Real Estate Broker

There are certain things that you need to keep in mind if want to become a Broker in the Alberta Real Estate Industry. You can be eligible to become a Real Estate Broker in Alberta if you qualify under the following categories.

A person needs to successfully complete the REAP program (Real Estate Associates Program) and complete all the areas of real estate practice. This means that you will have to pass the Residential, Commercial, Rural, and Property management Courses by RECA with a minimum score of 70%.
Apart from the REAP Program, the candidate should also complete the REBP Program (Real Estate Brokers Program) with a minimum score of 70%.
The candidate should have 2 years of experience in Alberta as a licensed real estate professional within a period of 5 years.

Responsibilities of a Broker

A Broker has an authoritative position in the industry. A broker is entitled with duties and responsibilities that are important from a legal, official, financial, and managerial perspective. A broker can be accountable for the following roles and tasks.

Supervision of associates and all the unlicensed staff that may be employed by the brokerage.
Check and verify all the trades that go through that brokerage and make sure all the real estate agents within his brokerage firm are working within the guidelines outlined by the Real Estate Act.
Responsible for maintaining the proper management of, and control of the documents, and making sure they stay on top of the trust accounts.
Make sure that all the business of the brokerage is carried out competently and in accordance with the Real Estate Act.

To summarize, the broker is responsible for everything that goes on in the brokerage.

Career Options for a Broker

Now let’s take a look at what are the career options if a person wants to become a broker –

1. Become a Broker at a Current Brokerage Firm

So, if the broker of the current brokerage is retiring or leaving a brokerage firm with any other reason, there may be an opportunity to become a broker with that brokerage firm. There can only be one broker per brokerage, so there must be an opportunity, or that role available.

2. Start your own Brokerage Firm

If you are firm and confident enough to start your own brokerage firm, go ahead. Make sure you get Real Estate Agents to work under your brokerage firm.

3. Become an Associate Broker with RECA

Becoming an associate broker with RECA is the best option to serve the Real Estate Industry without having the responsibilities to manage Real Estate Agents under you. An associate broker has all the qualifications that a broker would have.

SAMPLE QUESTIONS

Now let us take a look at some of the exam questions that we may see on this topic.

Example 1:

Which of the following requirements must a real estate associate fulfil in order to be licensed as a real estate broker?

I. Complete the Real Estate Brokers Program.
II. Be authorized in all specialty areas of real estate practice.
III. Be able to be employed as a broker of a real estate brokerage.
IV. Have at least two years of experience as an associate within the previous five years.

And the options are:

A. requirements one, two, and three.
B. requirements two, three and four.
C. requirements one, three and four.
D. all the above.

The correct answer is D.

Example 2:

Which of the following individuals is authorized by RECA to operate and manage a real estate brokerage?

And the options are:

A. agent.
B. broker.
C. associate.
D. associate broker.

The correct answer is B. A broker is the only person who is authorized by RECA to run a brokerage.

Example 3:

Pauline Yan has recently passed her REBP courses and is now ready to start her career as a broker. Which of the following is not a valid career option for her?

And the options are:

A. becoming the second broker at her current brokerage.
B. becoming the broker at another brokerage.
C. becoming the broker at a new brokerage.
D. becoming an associate broker.

The correct answer is A. A brokerage can only have one broker. So she cannot become a second broker at her current brokerage.

These are some sample questions with solutions and reasoning to get you understand the basic concept of Brokerage.

Did you know??

Real Property and Real Estate Property have different definitions in the book of Law and Real Estate!

Strengthen your Real Estate Terminology with our Question of the Day & Term of the Day Videos, only at Alberta Real Estate School.

If you feel this meaningful and can think of making a career in the Alberta real estate industry, get in touch with us at 587-936-7779.

Good luck with your Real Estate Studies!

You can listen to this blog on our Podcast Channel below. Keep in touch for more updates.

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May 4, 2020July 20, 2021

Buyers’ Real Estate Market

Real Estate Markets are periodic in nature and change with every season. Each of the seasons define the market in their own characteristics. Every period can vary in terms of how the Real Estate Market reacts and affects its participants including the Buyers and Sellers. Sometimes, it may affect the buyers more than the sellers, and vice-versa. Thus, every season has its own specific characteristics that drive the demand-supply chain of the market in a particular direction. Let’s see what specifications did the the Buyer’s Real Estate Market has to offer.

Want to know the basics of Real Estate Markets before diving deeper? Learn the Basics of Real Estate Markets and its Types with Alberta Real Estate School.

As Real Estate professionals, we need to be aware of what the current market conditions are so that we can serve our clients with the best possible results.

There are 3 different types of Real Estate Markets

1. Balanced Market
2. Buyers’ Market
3. Sellers’ Market

Buyer’s Real Estate Market

A buyers’ market is when there are more properties that are being listed for sale than the number of potential buyers that are looking for these properties. The number of properties that are listed on the MLS (Multiple Listing Services) are greater than the number of potential buyers.

Characteristics of a Buyers’ Market

Economy Conditions: The first one is generally we find the market to be a buyers’ market when there is a contraction in the economy. So, in this case, the economy is not doing so well. We are going through a downturn. Thus, we see that buyers are a little scared because they may not be sure of whether they are going to have a job or if the market conditions in relation to their job are going to change or if they may get laid off. So, there’s a fear in the economy, and as a result of that, the numbers of buyers are less. There is a contraction in the economy.
Property Supply: The supply of properties will be greater than the demand for properties. The number of properties that are available for sale will be greater than the number of people who are looking to buy the properties. The demand and supply are not balanced. Supply of properties is greater than the demand for properties in this case.
Buyer-Seller Ratio: There number of sellers outnumber the number of buyers in the market. So, a lot of people would have listed their properties, but the number of people who are looking to buy the property is fewer. So, therefore, we have fewer buyers than sellers during a buyers’ market. Thus, as real estate agents, we have an upper hand.
Off-Season Selling: As the market tends to move against the buyers, we can say that it is an Off-season market. The sale we make may be considered Off-season. Eventually, buyers will have more time and much better options to look for in case of properties. The properties are not selling as fast. The buyers will tend to shop around and look for more options for an elongated period as the market is not rushing through in speed.
Property Prices: In a buyers’ market, we see that property prices will decline. Because there are so many sellers, so many properties that are available for sale, over time people will reduce their prices because the properties are not selling. So, property prices will go down because there is a higher competition, and therefore property prices will decline during this time.
Product Phases: During a buyer’s market, properties will take longer to sell. So, the number of days that the property is on the market will be larger. Because the number of buyers is less, it will take the properties a longer time to sell to find that buyer.

SAMPLE QUESTIONS

Now let us look at some of the sample questions that we may see around this topic.

Example 1:

A recent newspaper headline states, local real estate board says it’s now a buyers’ market. What does this mean?

I. Property prices are going up.
II. Property prices are going down.
III. Properties take longer to sell.
IV. Properties sell quickly.

And the options are:

A. statements I and IV are correct
B. statements II and III are correct
C. statements I and III are correct
D. statements II and IV are correct.

The correct answer is B. Statements II and III are correct. So, in this case, property prices are going down and properties will take longer to sell.

Example 2:

What market is characterized by declining property prices, a large inventory of properties and lower demand and higher supply of properties?

And the options are:

A. Buyer’s Market
B. Balanced Market
C. Seller’s Market
D. All of the above

The correct answer is A. All those are characteristics of a buyers’ market because in buyers’ market we’ll see that the property prices are going down, the number of properties that is available for sale is quite high so there’s a large inventory of properties and there will be lower demand and higher supply of properties.

These are some sample questions with solutions and reasoning to get you understand the basic concept of Buyers’ Market.

Understand the alternative Seller’s Real Estate Market with examples and sample questions.

If you feel this interesting and can think of making a career in the Alberta Real Estate Industry, get in touch with us at 587.936.7779.

Good luck with your Real Estate Studies!

You can listen to this blog on our Podcast Channel below. Stay in touch for more updates.

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May 4, 2020July 20, 2021

Balanced Real Estate Market

Before we dive into the topic of Balanced Real Estate Market and see some sample questions with breakdown explanation of the solution, it is important to understand the different types of real estate markets that we see as real estate agents.

Before we can let you dive in to understand Balanced Real Estate Markets, let’s understand what are the Different Categories of Real Estate Markets and what are they based on?

Real estate is a cyclical business. It works in cycles, so we do not have the same type of market the entire time. Markets will go up and down, so we go through a cycle. We go through cycles in this industry, and as real estate professionals, we need to be aware of what the current market conditions are so that we are able to serve our clients the best.

We are not going to deal with the properties, or deal with the clients in the same way if it is a buyer’s market versus a seller’s market. If we know what kind of market it is, we are able to advise our clients in a much better way, and we are able to support them at a greater level.

Types of Real Estate Markets

Balanced Market
Buyers’ Market
Sellers’ Market

Each type of market will have its own characteristics, conditions that are only present in that type of a market condition. So, we need to be able to understand the conditions that we are expecting in that market in order to serve our clients the best. Today we will look at a balanced market.

What is a Balanced Real Estate Market?

A balanced market is when the supply of properties and the number of potential buyers is the same. So, there is a balance between the number of properties that are listed for sale, as well as the people that are looking to buy properties. Here, the number is not actually a specific number but a range that defines an average level of both the variables in comparison.

Characteristics of a Balanced Market

Demand-Supply Ratio: the balance between the demand and supply. The demand for the properties is equal to the supply of properties, so the demand and supply are equal. So, the number of buyers will be equal to the number of sellers. People looking for properties is about the same as the number of properties that are being listed.

Property Prices: Another thing that we’ll find during balanced market conditions is stable property prices. Because the demand and supply are equal, the number of buyers and sellers are balanced, the property prices will stay stable, so we do not see price fluctuations or surge too much. There are less chances for multiple bid situations to be seen in this type of market. So, property prices tend to stay stable.

Interest Rates: Affordable interest rate is another contributing factor that allows favouring of balanced market conditions. When the interest rates are stable, we see that people are not in a rush to buy properties, because they are not expecting interest rates to go up. People are not waiting to buy properties in anticipation of interest rates going down, so there is no rush to either buy properties or to wait for interest rates to decline.

Buyer-Seller Favorable: The name ‘balanced’ itself suggests that it is favors both the buyers and the sellers.

Market Conditions: The market conditions are favorable and balanced. Transactions are generally smooth with a reasonable number of sale transactions.

Competition: Because the supply and demand are balanced, we will see, as properties get sold more and more properties will be listed, and there is no oversupply of properties, neither is there undersupply of properties, so properties that come on the market get sold, and new properties come onto the market so there’s a reasonable number of properties for sale, so buyers don’t have to fight over the properties.

Timeframe: The properties are sold within a rational timeframe. The total number of days on the market for any given property will be appropriate, so properties are not sitting on the market for too long, neither are they getting sold quickly. As a result of that, people have time to make their decisions, they can check different properties around. There is no rush to buy the properties as well as the wait times for the sellers to sell the property is also in the common date-range.

SAMPLE QUESTIONS

Now let us look at some of the sample questions that we may see around this topic.

Example 1:

What type of market is said to occur when the number of properties in a local area is equal to the number of buyers?

A. balanced market
B. buyer’s market
C. seller’s market
D. all the above.

The correct answer is A. As we discussed earlier, under balanced market conditions, the number of buyers is equal to several sellers.

Example 2:

What market is characterized by stable property prices?

A. buyer’s market
B. balanced market
C. seller’s market
D. all of the above

The correct answer is B. Under a balanced market, the property prices will be stable, there is no need to rush into buying a property, as the demand is matched with supply, properties will sell within a reasonable timeframe, and supply and demand are equal, so they stay relatively constant.

These are some sample questions with solutions and reasoning to get you understand the basic concept of Balanced Market.

How well did you understand the Topic of Balanced Real Estate Market? Test your knowledge with a Mock Exam Question and see if your answer matches the solution.

If you feel this interesting and can think of making a career in the Alberta Real Estate Industry, get in touch with us at 587.936.7779.

Get started with your Real Estate Studies!

You can listen to this blog on our Podcast Channel below. Stay in touch for more of such educational posts.

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May 4, 2020September 16, 2021

Alberta Real Estate Eligibility Requirements for Immigrants

Raman Gakhal explains in detail about the Eligibility Requirements for Immigrants to get into the Alberta Real Estate Business.

Searching for Real Estate Licensing Requirements for Immigrants in Alberta? Here’s the Complete Journey from an Being an Immigrant to Becoming a Real Estate Agent in Alberta – SIMPLIFIED!

RECA is the governing body that defines the eligibility guidelines for anyone who wants to make a career in the Real Estate Markets in Alberta. To start with, there is a slight difference between eligibility requirements for somebody who went to school in Canada, and they were born in Canada to the one who is an immigrant. Let us look at, what are the eligibility requirements to get your Alberta real estate license if you are an immigrant in Canada.

Basic Requirements to get into Real Estate for Immigrants

A person must be 18 years of age,
Should be able to lawfully work and study in Canada,
Should have specific government-issued Identification,
Should have a minimum of a Canadian high school diploma or equivalent,
Should be Proficient in English.

So here, we will look at the Documentation Requirements for Immigrants. There are 3 main things we will be looking at here.

Identification

RECA needs two types of identification documents.

Source Documents

For the source document, you will need to provide proof of identity and ability to work in Alberta. So, there will be no substitute accepted for that. Things to keep in mind for your identification documents are that the document must contain a clear photo of you in a white background, your full legal name, your date of birth. Apart from this, the identification must be valid. And if your ID does not have an expiry date, then it must be issued within the last five years.

Examples of Source Documents

If you were born outside of Canada, they will be looking for the front and back copy of your Canadian Citizenship Card/Certificate, or you can provide a front and back copy of your valid Permanent Resident Card, or a copy of your Work Permit (if you are here on a work permit). The work permit must be without any study restrictions because you will be taking the courses so, the work permit should be without study restrictions, and it must be valid for the length of the program.

Note: The program is 18 months in length, so you need to have a work permit that will cover that period.

Supporting Documents

This could be a government photo identification, which could be a Canadian Passport, Driver’s License, Provincial Identification Card, Treaty Status Card, Canadian Forces Identification Card, or your Firearms Card.

Proof of Education

If you are an immigrant but you did your education in Canada, then you can provide one of the following:

Your High School Graduation Transcript (if you did your high school in Canada)

Your GED Transcript (if you went through the GED Program)

Your Post-Secondary Transcript from a Canadian University or Approved College (if you did your Post-Secondary Education here).

And it must show one of the following:

You have gone through a minimum of a 2-year Program

You got a degree from a Canadian University or College

You have successfully completed a minimum of 3 for-Credit Academic Courses towards a Diploma or a Degree.

Now, if you are an immigrant but you have education from elsewhere, you will need the following documents with the Criteria listed below:

You will need to provide an Assessed Non-Canadian Education Transcript which is equivalent to a minimum of a Canadian High School Graduation Diploma.

The education assessment must be completed by a member of the Alliance of Credential Evaluation Services of Canada, so ACESC, and education assessment must be mailed directly from the assessment service to RECA. So, you cannot provide RECA with your own assessment. It must be mailed directly from the assessment service.

What is NOT Accepted by RECA as a Proof of Education?

If you are just looking for an equivalency to grade 12 Canadian education. As proof of education, RECA will not accept the following:

Any Trade or Vocational Designations
Certificates, or Diplomas
Any Apprenticeships or Fast-tracked or Condensed Educational Programs
Any Professional or Occupational Memberships, Certificates, or Designations
Any Non-Credit College or University Courses, Designations, Certificates, or Diplomas
Any type of Work Experience.

All they are looking for is Grade-12 Equivalency.

Alliance of Credential Evaluation Services of Canada (ACESC)

ACESC, basically, it is a pan-Canadian organization which has six members. And they serve Alberta, British Columbia, Ontario, and Quebec. So, you can go to any of these member agencies within ACESC to get your transcripts assessed.

If you are in Alberta, the best one to go to is IQAS, which is the Alberta one. You will put in an application to them, and you will send them your transcripts and they will evaluate them and will send a copy directly to RECA. If you are in Alberta, IQAS is the most recommended Institute. Or, if you have done this evaluation elsewhere, it is also acceptable from any of the 6 ACESC Members.

The 6 members that form the ACESC are:

U of T (University of Toronto) Comparative Education Service
International Credential Assessment Service of Canada (ICAS)
British Columbia Institute of Technology (BCIT)
International Credential Evaluation Service (ICES) in Quebec
World Education Services (WES)
International Qualifications Assessment Service (IQAS)

2. Proof of English Proficiency

If you are an immigrant, you may also have to provide proof of English Proficiency.

Canadian Education

If your transcript indicates that you did your Grade-12 education from a Canadian High School, you do not need to provide anything additional.

Or, if you graduated from a minimum 2-year Diploma or a Degree Program from a Canadian Post-Secondary Educational Institution, you do not need to provide anything extra. But you do have to show that this was an In-class Program, it was delivered in English Language, and it led you to achieve a Diploma or a Degree. So, if any of these are valid, you do not need to provide anything additional. You are Okay!

Foreign Education

Now, if you are getting your foreign education assessment done, in that case, if the assessment is done by one of the ACESC Members.

Let’s say, you did your education in India and your mode of instruction delivery was in English Language. If your assessment shows that, then you do not need to provide any additional proof for your English proficiency. The only condition is your assessment must clearly indicate this message.

If you do not have any of those, you will have to provide proof of English proficiency. And there are various options, in terms of the different assessments that you can go through which are the following:

Test of English as a Foreign Language (TOEFL) – In this case, you’re looking for an overall score of 92 and minimum scores of 21 in listening, 26 in speaking, 21 in reading, and 24 in writing.

International English Language Testing System (IELTS) – In this case, it should be academic assessment and minimum score has to be 6.5 in all areas i.e., a minimum overall score of 6.5 in listening, speaking, reading, and writing.

Canadian English Language Proficiency Index Program (CELPIP) – In this case, you need the general test with a minimum score of seven. And that should be the score in all areas for listening, speaking, reading, and writing.
Canadian Academic English Language Assessment (CAEL) – In this case, you need to have a minimum score of 60 in all areas, and an overall score of 60 in listening, speaking, reading, and writing.

Other things to keep in mind in terms of English proficiency assessments is that RECA will only accept assessments given by the listed organizations. They will not accept anything else.

Note: ESL Courses are not accepted as proof of English proficiency. Also, any employment experience will not be considered as proof of English proficiency.

These are the documentation and education requirements listed by RECA to be followed if you are an immigrant and applying for Real Estate Licensing in Alberta. Always keep in mind that RECA does change their requirements from time to time, so it is very important to visit their website to confirm these requirements.

I hope you find this article helpful and get a deeper understanding of what the requirements are if you are an immigrant to Canada and you are looking to get a real estate license in Alberta.

If you are a born in Canada and wish to know the Alberta Real Estate Eligibility Requirements for Canadian Citizens, get it right here at Alberta Real Estate School.

If you have any questions or would like to get further information, you can always call us at 587.936.7779.

Good luck with your Real Estate Studies!

You can listen to this blog on our Podcast Channel below. Stay in touch for more updates.

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