Real Estate Licensing is a mandatory requirement for Agents who want to make transactions with real estate property. As tedious as it is to understand the process of obtaining a Real Estate License, first you should know what the different Real Estate Licensing Classes are.

4 Classes of Real Estate Licensing in Alberta

Brokerage

A brokerage is a legal entity that is registered with RECA. So, this can be a sole proprietorship, partnership, or corporation.

For example, Peak Real Estate Brokerage Ltd, or Regency Commercial Brokerage. These are legal entities that are registered with RECA.

A brokerage is authorized to trade in real estate on its own behalf. A brokerage employs a licensed and registered real estate broker. A brokerage can have any number of associates and associate brokers registered with it. And each brokerage can have only one broker.

Broker

So, who is a broker? The broker is the leader of the brokerage. The broker is responsible for making sure that all the activities of the brokerage comply with The Real Estate Act.

Ultimately, anything that happens in brokerage is the responsibility of the broker. The broker may be the owner of the brokerage, or it may be someone who manages the brokerage on behalf of the owner. Each brokerage can have only one broker.

Following this, a question may arise to you – How does one become a broker?

Broker – Eligibility Criteria

1. To become a broker, the person needs to successfully complete the REAP Program, which is the Real Estate Associates Program, including all specialty areas of Real Estate Practice.
2. In addition, they also need to successfully complete the Real Estate Brokers Program REBP, The Minimum Passing Score is 70% or higher for REBP.
3. As well, they need two years of experience in Alberta as a licensed real estate professional in the previous five years. Once a person has all of these qualifications, they are now ready to become a broker.

Associate Broker

An Associate Broker is an individual who holds the qualification of a real estate broker. So, they have met the same education and experience requirements as that of a broker.

However, they have chosen not to become a broker at this point. Instead, they are licensed as a Real Estate Associate Broker with RECA.

A real estate associate broker is employed by a licensed real estate brokerage in Alberta. And this person is registered with an approved to trade in real estate on behalf of this brokerage.

Although the associate broker holds all the qualifications of a real estate broker, they have the same role responsibilities and prohibitions as that of an associate. The brokerage can have any number of real estate associate brokers registered with it.

Associate

An associate is someone who holds the qualification of a Real estate Associate. That means they have successfully completed the REAP program.

This person is licensed as a real estate associate by RECA. They have to be employed by a licensed real estate brokerage in Alberta and they are registered and approved to trade in real estate on behalf of that brokerage.

This is the entry-level class of real estate license, which is the initial real estate license the person earns upon entering the profession. The brokerage can have any number of associates registered with it.

SAMPLE QUESTIONS

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

Example 1:

How many associates, associate brokers and brokers can be registered with a brokerage?

A. One associate, many associate brokers, and brokers
B. Many associates, one Associate Broker, and many brokers
C. Many associates, associate brokers, and one broker
D. Many associates, associated brokers, and brokers.

The correct answer is C. As we just learned in Alberta, a brokerage can have many associates and associate brokers but only one broker.

Example 2:

Which of the following individuals holds the qualification of a real estate broker, but is not authorized to operate a brokerage?

A. Agent
B. Broker
C. Associate
D. Associate Broker

The correct answer is D. An Associate Broker has all the qualifications of a real estate broker, but they are not authorized as a broker. So, they are not able to operate on run a brokerage.

Example 3:

Which of the following describes the class of license individuals hold who are new to the real estate profession in Alberta?

A. Agent
B. Broker
C. Associate
D. Associate Broker

The correct answer is C. The associate is the entry-level license that a person gets when they first get started in the real estate profession in Alberta.

These are some sample questions with solutions and reasoning to get you understand the basic concept of Real Estate License Classes.

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.

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