Category: Real Estate

The Real Estate Exam in Alberta is a very tricky exam. There are a lot of topics to understand. Thus, the Alberta Real Estate Exam Format is also designed to match the format of the content. Alberta Real Estate Exams are multiple-choice and thus, the questions asked in the exam are divided in to:

2 Categories: Definition Questions & Scenario Questions.

Types of Questions in the Alberta Real Estate Exams

Now, Definition Questions go with their name. They do exactly what they say i.e., Terms or Definitions. 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, things like real property, real estate, land, GDP, etc.

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What are Scenario Questions?

One of the most difficult types of questions to expect in the Alberta Real Estate Exam would be Situational or Scenario 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.

Scenario Questions are best answered by understanding the concepts. It is a multiple-choice exam. So, there is no need to memorize everything because things will be in front of us, they will ask us a question, and the options will be in front of us. But what we do want to do is understand the key concepts, because once you understand the key concepts, you will have a much easier time answering the questions.

Examples of Scenario Questions

Let us look at some of the examples of Scenario Questions that you can use in the Real Estate Exams.

Example 1

Mary Thomas is a real estate professional with Polaris Realty. She signs a written service agreement with her client, Jen, to sell her property. Who is the real estate relationship that is established between?

1. The brokerage and Jen
2. Mary Thomas and Jen
3. The broker and Jen
4. The brokerage and Mary Thomas

Correct Answer: A

Example 2

Sophia is a real estate professional with True North Realty. She has recently listed her clients’ property for sale. An unrepresented buyer approaches Sophia and wants to see the property. After viewing the property, he wants to write an offer on it. What must Sophia do?

1. Document the relationship
2. Discuss the type of relationships
3. Disclose her representation capacity
4. Acting consistently with the relationship established

Correct Answer: C

Example 3

Shelly is a real estate professional who has been hired by an investor, Mark, to help him find a property or a few lots that can be assembled and developed into a multi-family housing project. As a result, Shelly approaches a number of owners of properties that would fit the Mark’s criteria.  Which of the following would best describe Shelly’s relationship with the various parties?

1. Mark is the customer, and the property owners are clients
2. Mark is the client, and the property owners are customers
3. Both, Mark, and the property owners are clients
4. Both, Mark, and the property owners are customers

Correct Answer: B

Example 4

Willian and Jen Bellinger are very excited about purchasing a brand-new home for their growing family. They meet with their mortgage professional and find out that they don’t quite qualify for the mortgage as their income is a little less than what the banks require. Both William and Jen know that they can make the mortgage payments as they’re both responsible people. Since they know William will be getting a raise in the next 6 months, they decide to change the employment letter from their employer to reflect the higher salary that William will be getting. They’re then able to get the mortgage and move into their new home. What type of mortgage fraud is demonstrated in this scenario?

1. Fraudulent Occupancy
2. Non-occupancy Scheme
3. Fraudulent Qualification
4. Buyer Financing Scheme

Correct Answer: C

Example 5

Jason and Jen Cole are a newly married couple who are very excited about purchasing a new home in a small town and starting their life journey together. They had a fabulous dream wedding which was a little on the expensive side but well worth the price. Unfortunately, that leaves them a little short on funds for the down payment. Since Jen’s heart is really set on the cute house that she believes is perfect for them, Jason decides to borrow $20,000 from his friend, Dell. They both have good jobs so they’re confident they’ll be able to save the money to pay back Dell as well as afford the mortgage payments. With the money in their account, they’re able to qualify for the mortgage and move into their new house. What type of mortgage fraud is demonstrated in this scenario?

1. Buyer Financing Scheme
2. Equity Access Scheme
3. False Deposit
4. Secret second

Correct Answer: C

These are some great examples of Scenario Questions that you can expect in the Alberta Real Estate Exams. The examples clearly show the level of complexity these questions can create. Thus, you should understand and learn the concepts whole-heartedly to crack the scenarios. Once you breakdown the scenarios in smaller parts, you start to understand the actual question and can then answer it without any confusion.

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