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Understanding Real Estate Exam Questions

Raman Gakhal of Alberta Real Estate School is helping us understand the breakdown for Real Estate Questions asked by RECA in the Alberta Real Estate Exams.

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:

[I] Definition Questions

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.

[II] 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.

Let’s try to understand some Sample Real Estate Questions with Solutions –

Examples of Real Estate Exam Questions in Alberta

Example 1

Which of the following statements best describes the concept of Scalable Enforcement under RECA’s professional conduct review program?

  1. RECA will consult the courts and other governing bodies to impose disciplinary sanctions
  2. Disciplinary Sanctions will be first carried out by the brokers and then referred to RECA if the same infraction occurs
  3. Industry Professionals will receive sanctions that can and will escalate upon future occurrences of the same activity
  4. Failing to comply with brokerage policies and procedures will result in monetary fines that increase with each breach

Correct Answer: 3

Rationale: So, in this case, it is a Scenario Question. The reason of the statement being true is RECA will put an easier Sanction initially, but if the other party does not improve their behavior and keep repeating the same mistakes again and again, the Sanctions will be higher. So they will escalate upon future occurrences of the same activity.

Example 2

Which of the following statements is an example of an inappropriate inducement?

  1. A brokerage agrees to pay the buyer’s moving costs to close a transaction
  2. A brokerage ad states that it will pay the appraisal fee for all the first time home buyers
  3. A real estate professional agrees to pay the first mortgage payment to get new business
  4. A real estate professional pays for the seller’s window repair to make the sale

Correct Answer: 4

Rationale: So, in this case, they are asking us which of the following is an Inappropriate Inducement. It is a Definition Question. So, you have to understand the Definition of Inducement and apply the understanding of the concept to answer the question. Now, if you have learnt the concept thoroughly, you will know that paying the cost of window repair of a seller is not a Real Estate Agent’s liability. Thus, the answer is 4.

Example 3

Which of the following applies to the payment of Referral Fees?

  1. Real Estate brokerages may be paid Referral Fees by Mortgage Brokerages
  2. Real Estate Professionals may pay referral fees to mortgage brokerage professionals
  3. Real Estate Professionals may pay referral fees to unlicensed individuals if the broker approves
  4. Real Estate Professionals may be paid referral fees by mortgage brokerages

Correct Answer: A

Rationale: This is again a Definition Question. According to the concept of Referral Fees, Real Estate Agents are allowed to pay Referral Fees. However, they have to be paid through the Brokerage and not directly. So, the process goes as – We send Referral Fess to Mortgage Brokerage and then the Brokerage sends the fees to the Mortgage Brokers.

Example 4

Which of the following Disclosures are required by a brokerage when one of its real estate professionals wants to purchase a property that the brokerage has listed for sale?

  1. Disclose to the client the name of the real estate professional
  2. Disclose to the client the existence of a conflict of interest
  3. Disclose to the client the opportunity to seek independent advice
  4. All of the above

Correct Answer: 4

Rationale: If a real estate professional wanted to buy a property that is listed by another agent in the same brokerage, it means that the brokerage is representing the seller. So, in this case, we would have to do some disclosures and we would have to disclose the name of the real estate professional who is involved. We would have to say that there is a conflict of interest and the client will have the opportunity or we have to provide them the opportunity to seek independent advice on how to proceed. Thus, our correct answer here is D – All of the above.

Example 5

The rules require an individual trading in real estate to hold an authorization with RECA unless they are exempt. Which of the following is not exempt?

  1. A person acting directly by statute or court order to dispose of real estate
  2. A bank, credit union, loan corporation, trust corporation or insurance company administering real estate
  3. A full time assistant that holds open houses for a real estate professional
  4. A member in good standing of the Law Society of Alberta when in the practice of law

Correct Answer: C

Rationale: The person who is acting based on a court order and they are auctioning of the property or it’s some sort of a foreclosure and they’re dealing with the property, that person does not require a license anything under the court order does not require a license because they’re only working with one particular property that the court is dealing with. So, they don’t require a license.

Generally, when there’s a foreclosure or anything like that, they will hire a real estate professional to represent and that’s why we don’t have to worry about it. So anything under the court is completely exempt. Also any kind of bank, credit union, loan corporation, all these types of companies are allowed to provide mortgages. Normally, you would require a license from RECA or authorization from RECA in order to get mortgages. However, in this case, these companies fall under their own regulation.

So for example, if it’s an insurance company like Manulife, they give out mortgages but they would fall under the Insurance Act and therefore, they don’t have to go through RECA under the Real Estate Act, Same way, a bank or a credit union they have their own banking regulation or credit union regulations that they fall under and therefore they are exempt from RECA authorization because they already have a similar regulation that they fall under.

Here, Option D states a lawyer. Basically, we will work with lawyers in closing the transactions and lawyers do not fall under RECA’s jurisdiction. Again, because they are under the Law Society of Alberta. They have their own rules that apply to them. In case of Option C, it refers to a full-time assistant that holds open houses for a real estate professional. Now, the problem here is a full-time assistant is not allowed to do open houses. So, this is act in person when we have contract with somebody. We are the ones who are supposed to act on behalf of that person. We are the one with authorization. If a person is working as a full-time assistant that means they’re unlicensed and they’re not allowed to do open houses for us. They’re not allowed to represent a client, sign a contract or do any of those things. So, all those activities require a license. Thus, a full-time assistant would not be able to do this transaction, they would need a license. So they’re not exempt.

Example 6

Which of the following groups of statements are correct regarding the Real Estate Act Rules? Choose the correct statements.

  1. The Rules may only be amended by the Provincial Legislature
  2. RECA posts the most current version of the rules on its website
  3. The Rules refer to the Standards of Practice for industry professionals
  4. When contemplating amendments to the Rules, RECA consults with industry professionals and stakeholders

Options:

A. Statements I, II and III

B. Statements II, III and IV

C. Statements I, III and IV

D. All Statements are correct

Correct Answer: B

Rationale: Here, the statements 2, 3 & 4 are correct as RECA is allowed to amend the rules and bylaws. They don’t have to go through the provincial legislature. Only we have to go through the provincial legislature. If there are any sort of amendments required to the Real Estate Act, only provincial legislature can amend it. However, the rules and bylaws can be amended by RECA. Thus, the 1st Statement is not correct. But the other Statements state that RECA will post most current version of the rules on their website. Rules are the standards of practice that we have to follow in our day-to-day. So, they apply to all Real Estate Industry Professionals and then any time when RECA wants to do changes, they will consult industry professionals i.e., us. They will get feedback from all the professionals who would be in that industry plus the stakeholders and change the rules. Therefore, Option B is correct.

These are some great examples of Real Estate Exam 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 actual meaning of the questions. Once you breakdown the question in smaller parts, you start to understand the answer they are looking for and you can then answer it without any confusion.

Want to tackle Definition Questions in the Real Estate Exams more confidently? Get all the Important Real Estate Terminology right with Alberta Real Estate School.

Join Alberta Real Estate School for expert help with understanding the concepts of Real Estate and getting uncommon and detailed tutoring sessions personalized 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!

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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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What is Real Estate Assurance Fund (REAF)?

A picture of Raman Gakhal along side the headline of Real Estate Assurance Fund as one of the topics of Fundamental of Real Estate in the RECA Exam.

RECA administers the Real Estate Assurance Fund (REAF), which is also known as the Consumer Protection Fund (CPF) is collected and issued by RECA. The fund protects consumers from unscrupulous industry professionals. Real Estate Assurance Fund has been set up to compensate consumers who suffer a financial loss. This financial loss could be due to Fraud. It covers frauds under Real Estate Practice as well Mortgage Brokerage Practice.

Have a look at the video below to understand the concept –

Basic Requirements to Claim Real Estate Assurance Fund (REAF)

  1. Fraud: A client whose real estate agent have been a part of any fraudulent scheme. For instance, somebody bought a house, but they didn’t get that property or there was something wrong with the property overall. This fund is then issued by RECA to individuals such as these to compensate for the fraud. This type of fraud requires a judgement in the court of law with necessary evidence to prove that the fraud has taken place.
  2. Breach of trust: Any client who was guided by wrong, deferred or a complete lack of necessary information during their contract. This kind of breach also requires a lawsuit in court.
  3. Failure of disbursement or Account of Money held in Trust: In accordance with section 25 of the Real Estate Act, when there is any kind of failure for disbursement of money held in trust (in advance) to secure the deal. For instance, not getting the deposit back which was held for holding the property. As per law, when an offer is accepted, the client should his advance payment of deposit back. The failure of money payback does not require a lawsuit to claim REAF.

How is Real Estate Assurance Fund (REAF) Collected?

REAF applies to Real Estate as well as Mortgage deals. So, if the fraud happened when buying a property or when getting a mortgage, both are covered under the Real Estate Assurance Fund. REAF is ultimately funded by the Real Estate Agents as well as the Mortgage Brokerage Professionals as when they pay RECA fees, part of it goes to maintaining real estate assurance fund.

Maximum REAF Claim Amounts

Assurance Fund compensation is subject to the following maximums:

  1. Real Estate: $35,000 per Fund applicant
    $350,000 for all claims against an industry member per event
  2. Mortgage broker: $25,000 per Fund applicant
    $100,000 for all claims against an industry member per event

Time Limits for Applying REAF Compensation

  1. Claim based on Fraud or Breach of Trust: 1 year from the date of the Court Judgment to apply for compensation from the Fund.
  2. Claim based on Failure to disburse, or account for Money held in Trust: 1 year from the date on which the alleged loss or damages occurred to apply for compensation from the Fund.

RECA cannot process your claim if you fail to adhere to this timeline.

Restrictions for REAF Claims

The following persons cannot make a claim under the Fund:

  1. Any financial institution (bank, loan corporation, trust corporation, credit union, treasury branch, etc.), whose business includes the lending of money by way of mortgage security or otherwise, or any subsidiary as per section 2 of the Business Corporations Act
  2. Any person who Council’s believes knowingly participated in or was willfully blind to the fraud or breach of trust
  3. Any corporation or other entity carrying on any business or activity specified or described in the Real Estate Act Exemption Regulations

Sample Exam Questions for Real Estate Assurance Fund (REAF)

Example 1:

What does the Real Estate Assurance Fund (REAF) cover?

  1. Errors, Omissions, and Commissions
  2. Errors, Commissions, and Fraud
  3. Errors, Omissions, and Negligent Acts
  4. Fraud Failure to disperse Funds and Breach of Trust

The correct answer here is 4 – Fraud Failure to disperse Funds and Breach of Trust.

Rationale: Real Estate Assurance Fund only covers fraud failure to disperse funds or a breach of trust. Any sort of errors, omissions, or negligent acts, all of these will be covered under REIX. It is a separate Errors and Omissions Insurance that real estate agents carry.

Example 2:

Paul Chang is a Real Estate Associate with ABC Realty. He meets Joe and Betty Hill, who are looking to downsize from their 4-Bedroom House to a Condo. The reason being they’re getting older and not able to maintain the property. Paul lists the property below market value and then brings in an offer from his brother to purchase the property. Once the Hill’s children learn of this, they initiate a Civil Lawsuit against Paul Chang claiming fraud on his part. How do the Hills go about getting compensated for their loss under the situation?

  1. REIX
  2. Errors and Omissions Insurance
  3. Homeowners Insurance
  4. Real Estate Assurance Fund (REAF)

The correct answer here is 4 – Real Estate Assurance Fund (REAF)

Rationale: In this case, we can clearly see that Joe and Betty Hill, who did not understand the value of their property happen at taken for a ride by Paul Chang. He lists the property below market value and brings in an offer from his friend or relative (in this case, his own brother) and wants to make a profit on the property. So here, he is taking an advantage of Joe and Betty Hill’s unawareness and misguides them with low property valuation. Thus, this is a case of breach of trust and fraud, and therefore, the compensation would come from a Real Estate Assurance Fund.

NOTE: REIX could have been applicable only if the Real Estate Agent(here, Paul) would have made an error (an unintentional fault) in deciding the valuation of the property and getting a lesser profitable deal with genuine buyers from the market.

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.

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

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What Types of Questions to expect in the Alberta Real Estate Exam?

Video by Alberta Real Estate School Raman Gakhal diligently explaining the Types of Questions to Expect in the Alberta Real Estate Exam

If you are preparing for your Alberta Real Estate Exam and wondering the importance of each of the chapters from the 500-Page Manual, then it’s next to impossible for you to realize the type of questions you can expect to see in the RECA Exam from each of those chapters. The content can be overwhelming and may seem wearisome to a major extent. This blog post will therefore discuss the various types of questions to expect in the Alberta Real Estate Exam.

The content and the questions you can expect to see in the actual Real Estate Exam can be sub-divided into 2 categories – Definitions and Scenarios.

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, things like real property, real estate, land, GDP, etc.

These are all the terms that we need to understand as real estate agents, 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 basic types of questions to expect in the Alberta real estate exam. They will give you an explanation of that term and they will ask you to pick the correct term.

Example 1

The statement, “Anything a brokerage offers or gives to a person who is, or could be, a party to a real estate or mortgage transaction, meant to assist, persuade or cause that person to enter into a particular real estate or mortgage transaction, describes which of the following?”

So here, they have given us a statement which is a definition of a certain term, and we must tell them what is the correct term? They will give us some options and now we must pick what this definition is and what this relates to.

The options are:

A. Inducement
B. Incentive
C. Referral
D. Enticement

The correct answer is A. So, this statement describes the term inducement.

Example 2

What is the difference between an inducement and an incentive?

So here we have two terms, and we have to pick out what are the correct definitions of these terms. So again, this type of question will fall into your definition question.

The statements are:

A. The purpose of inducements is to bring business into the brokerage whereas incentives are used to motivate clients to move forward with the deal.

B. The purpose of incentives is to bring business into the brokerage whereas inducements are used to motivate clients to move forward with the deal.

C. Incentives are used by brokerages to generate business for the associates whereas inducements are used by associates to get their clients to sign the deal.

D. Inducements are used by brokerages to generate business for the associates whereas incentives are used by the associates to get their clients to sign the deal.

The correct answer is B. So, the difference between an inducement and incentive which are both the terms that we now need to define is the purpose of incentives is to bring business into the brokerage whereas inducements are used to motivate clients to move forward with the deal. This is another example of definition-based question.

Example 3

Conduct Deserving of sanction can be best described by:

Again, they’ve given us a term and now we have to find the correct definition of this term.

The options are:

A. conduct that harms the integrity of the profession
B. conduct that breaches the act, rules, regulations
C. conduct that falls below industry standards
D. All of the above.

The correct answer here is D as all these statements describe the term conduct deserving of sanction, so they are all correct.

So, these were some of the examples of definition questions where either they will define a term and they will ask us to tell us what term that is or they will actually give us a term and they will ask us to pick the correct definition, or they can do compare and contrast where you have two terms, and you have to find the correct definition of those terms.

So, all these different types will be covered under definition questions.

Scenario Questions

One of the most difficult types of questions to expect in the Alberta Real estate 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.

Let us look at some of the examples of these types of questions.

Example 1

Amy and John buy a house together and are registered as tenants in common on the property. John passes away suddenly in a car accident. What happens to the house they purchased together?

In this case, they have given us a scenario and within that scenario, they have some key terms. The key term here as tenants in common. So, they purchase a house together and, on that property, they are registered as tenants in common.

We need to understand what does tenant in common mean, or what is joint tenancy versus tenants in common, the difference between these things. And once we have a good understanding of that concept, we can then answer this question. Let us look at the different options.

A. Amy now owns 100% of the house
B. John’s share passes to his heirs through his will
C. John’s share goes to his son
D. John’s share returns to the crown.

The correct answer is B. Because they are tenants in common, there is no right of survivorship. That is why in this case, Amy does not own the entire house. If they were joint tenants, then Amy would have the right of survivorship, in which she would get the entire house.

Option B is John’s share will pass on to his heirs through his will. This is the correct answer. Whether they say that it will pass on to his heirs through the will or it says it will pass on to the estate, to John’s estate, both of those options will be correct here.

Option C where they say John’s share goes to his son, now they have not told us in the question whether he has a son or a daughter or what kind of children he has or if he has any children in this case, so this is not the best option here.

And the last one, John’s share returns to the crown, again, this is not the best option, because first, it will pass to his estate and if he does not have any heirs, only then will his share go to the crown.

If he dies without a will and without any heirs, then the property will then revert to the crown, otherwise, the best option will be that it goes to his estate, or it goes to his heirs through the will.

Example 2

Rhonda, a real estate associate with Regency Realty Limited, comes into an inheritance and decides to take a year off to travel the world. As such, she decides not to renew her license with her brokerage. How long does Rhonda have to register again with the brokerage before her license expires?

In this case, the scenario is that Rhonda is a real estate associate, and she comes into some money. The gist of the question here is that she is taking a year off to travel.

So, the rest of the question doesn’t really matter. It could be anybody, anywhere. The gist of the question here is if the real estate associate takes a year off, what do they need to do to come back again then? Let’s see how we can best answer this question. They are asking us when does she have to renew her license? The options are:

A. by September 30th of the following year
B. within 24 months after her license expires
C. within 36 months from the last date of her registration
D. by December 31st after the termination of her resignation.

The correct answer here is C. So even though they are telling us that Rhonda is taking a year off to travel the world, her options could change. This means she could decide to stay longer, we do not know that. So right now, what we must go by is if real estate associates decide to not renew their license, how long do they have?

Rhonda must renew her license within 36 months from the last date of their registration. Otherwise, then she must take the entire exams once again.

When we are looking at scenario questions, we really need to get to the heart of the question and look at what they are asking us. A lot of times they will try to confuse us with a lot of scenarios, different things that are going on in the question, we just need to peel the onion here and look at what the main point of the question is really. So here, the focus of the question is a real estate associate takes time off, what is the time limit that they have before their license will expire?

Example 3

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 different options that we have for the answer 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. So here we need to understand what a buyers’ market is. Once we understand the concept of the buyers’ market and we understand the different characteristics of the buyers’ market, it will be easier for us to answer this question.

Our correct answer is B, which means statements two and three are correct, so in a buyers’ market, property prices will go down and properties will take longer to sell.

 

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. Learn How much do you need to memorize for the Alberta Real Estate Exam – Tips by Alberta Real Estate School.

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