What Type Of Questions To Expect On The Alberta Real Estate Exam

What Type Of Questions To Expect On The Alberta Real Estate Exam


(lighthearted music) – Hi, this is Raman,
your real estate tutor. Today, we’ll take a look
at what type of questions to expect on your
Alberta real estate exam. So let’s go on and take
a look at the slides. Let’s take a look at
what type of questions to expect on the Alberta real estate exam. When you go to write your
Alberta real estate exam, you will come across two
different types of questions. First will be definition questions which relate to any kind of definition and second will be your
situational or scenario questions. So let’s take a deeper look at what are these different
types of questions. First one are definition questions. So these will relate to any kind of term that they ask you to define. So they can either give
you a term to define and they’ll 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, et cetera. 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
does this sentence describe? So they will give you an
explanation of that term and they will ask you to
pick the correct term. Now let’s take a look
at some of the examples of these kind of definition questions. First exam question. 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 have to tell them
what is the correct term? So they’ll give us some
options and now we have to pick what is this definition,
what is this relate to. So let’s take a look at the options here. The options are inducement, incentive, referral or enticement and the correct answer is A. So this particular statement
describes the term inducement. So this statement is the
definition of the term inducement. Another exam question,
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: the
purpose of inducements is to bring business into the brokerage whereas incentives are
used to motivate clients to move forward with the deal. Next option 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. Third option is 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. Fourth option, 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. Correct answer in this case 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. Another example here would be the term, 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: conduct that harms the integrity of the profession, conduct that breaches the
act, rules, regulations, conduct that falls
below industry standards or four, all of the above. The correct answer here is
D, which is all of the above. 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 of these different types will be covered under
definition questions. Now, let’s move on to scenario questions. The second type of questions that they can ask you on
the Alberta real estate exam would be situational questions. These questions are also
known as scenario questions. Scenario questions basically ask you for who, what, when, where or why. So they will give you a
scenario and based on that, you will have to answer a question. These type of questions are best answered by
understanding the concepts. So here, we are not
trying to memorize a term, but we have to go deeper
and really understand the concept so that we can
answer these type of questions. Let’s take a look at some of the examples of these types of questions. First example here, 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? So in this case, they
have given us a scenario and within that scenario,
they have some key terms. So the key term here is tenants in common. So they purchase a house
together and on that property, they’re registered as tenants in common. So we need to understand what
does tenants 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. So let’s take a look at
the different options. Option A, Amy now owns 100% of the house, option B, John’s share passes
to his heirs through his will, C, John’s share goes to his son, or D, John’s share returns to the crown. In this case, the correct answer is B. Because they are tenants in common, there is no right of survivorship. That’s 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. So in this case, because
they’re tenants in common, this option does not apply. Option B is John’s share will pass on to his heirs through his will. This is the correct answer. So 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 haven’t 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
actually go to the crown. So if he dies without a
will and without any heirs, then the property will then
revert back to the crown, otherwise, the best option
will be that it goes to his estate or it goes to
his heirs through the will. Let’s take a look at
another exam question. 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 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 in
order to come back again then? So let’s see how we can
best answer this question. So they’re asking us when does she have to renew her license? So the options are, by September
30th of the following year, within 24 months after
her license expires, within 36 months from the
last date of her registration, or D, by December 31st after
termination of her resignation. The correct answer here is C. So even though they’re telling us that she’s taking a year
off to travel the world, her options could change. Which means she could
decide to stay longer, we don’t know that. So right now, what we have to go by is if real estate associates decides to not renew their license,
how long do they have? In this case, they have
to renew their license within 36 months from the last
date of their registration. Otherwise, then they have to take the entire exams once again. So that will be our correct option. When we’re looking at scenario questions, we really need to get to
the heart of the question and look at what are they 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’s really the
main point of the question. So here, the main focus of the question is a real estate associate takes time off, what is the time limit that they have before their license will actually expire? Next exam question is, a recent newspaper headline states, “Local real estate board says
it’s now a buyers’ market.” What does this mean? Property prices are going up, property prices are going down, properties take longer to sell
or properties sell quickly. And the different options that
we have for the answer are: statements one and four are correct, statements two and three are correct, statements one and three are correct, or statements two and four are correct. In this case, the correct answer is B. So here we need to understand
what is a buyers’ market. Once we understand the
concept of the buyers’ market and we understand the
different characteristics of buyers’ market, it
will be easier for us to answer this question. So 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. That’s why the correct answer is B. So let’s recap this. When you go to write your
Alberta real estate exam, there are two main types of questions that you will come across. One will be definition based questions, which means they will
either give you a term and they will ask you
for definition of that, or they will give you a definition and they will ask you what
term does that relate to or they can also ask you to
pick the correct statement in relation to that term. So things like real property,
real estate, land, GDP, these are some of the terms
that we have to be familiar with when we go to write the exam. Second option is situational questions. Most of the exam will be
based around situational or scenario questions. These are questions that are based on who, what, when, how, where. These questions give us a scenario and based on that scenario, we have to answer the question. The best way to answer
these type of questions will be to get to the heart of the issue and really look at what
exactly are they asking us and then answer your question
based on that problem. Thank you so much for joining me today. I hope you enjoyed this episode. If you would like a cheat sheet
with all those points on it, click on the link below and I’ll make sure to send
it your way right away. That’s it for today. Don’t forget to like,
comment and subscribe. I will see you next time. If you would like some extra support in preparing for your
Alberta real estate exam, I invite you to visit
www.AlbertaRealEstateSchool.com or you can call me at 587-936-7779. Good luck with your studies
and I’ll see you next time. (lighthearted music)

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