RECA Commercial Unit 7 - Session 1 Questions and Correct Answers A life interest or life estate allows a life tenant control of a property during their lifetime.For what reason can life estate be difficult to sell at full value? - Correct AnswerLife estates are difficult to sell at full value as the life expectancy of the life tenant is uncertain.
A rural utility association is an incorporated entity of 5 or more persons. What is the main purpose of a utility association? - Correct AnswerTo supply to its members utility services for electricity, gas or water used primarily for domestic purposes and services.
Specialized municipalities are unique municipal structures that can be formed without resorting to a special Act of the legislature. This type of municipality allows urban and rural communities to coexist in a single municipal government. Identify the 5 specialized communities in Alberta. - Correct AnswerThe municipalities of Crowsnest, Jasper and Wood Buffalo along with the counties of Strathcona and MacKenzie.
T/F: If Real Estate Professionals trade in areas of real estate other than the ones in which they are licensed, their actions may be deemed conduct deserving of sanction by RECA. - Correct AnswerTrue.
T/F: Real Estate Professionals are restricted to trading in the specific areas of practice in which they are licensed. - Correct AnswerTrue.Real Estate Professionals must hold a valid license for each area of real estate in which they practice.
T/F: Real Estate Professionals licensed in residential real estate can assist buyers and sellers when there are more than 4 premises as part of the single transaction. - Correct AnswerFalse. 4+ premises requires a commercial license.
T/F: Real Estate Professionals licensed in residential real estate can provide services beyond their experience in order to assist sellers and buyer. - Correct AnswerFalse.
T/F: Real Estate Professionals representing buyers interested in purchasing rural residential properties have a # of items specific to rural properties to discuss with their clients. - Correct AnswerTrue.
T/F: Real Estate Professionals representing sellers of rural residential properties will have the same items to discuss as sellers of urban residential properties. - Correct AnswerFalse.
T/F: Rural residential property types include a similar range of residential property types that may be encountered in urban and suburban locations. - Correct AnswerTrue.
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