RECA Fundamentals Exam Questions and

RECA Fundamentals Exam Questions and Verified Correct Correct Answerwers 100% Complete, A+ On First Attempt

• Principal of Balance - Correct Answer value is created and sustained where there is

equilibrium

• Principal of Change - Correct Answer economic, political, and social forces are

constantly in play and contribute to the dynamic nature of property values

• Principal of Competition - Correct Answer excessive profits breed opportunities

which then tend to destroy those profits

• Principal of Consistent Use - Correct Answer when improved land is in trCorrect

Answerition to another highest and best use, one use cannot be allocated to the land and another allocated to the building

• Principal of External Factors - Correct Answer various factors beyond the property

itself can impact its value and these factors may include economic, political, social and physical issues

• Principal of Increasing/decreasing return - Correct Answer capital improvements add

value to a property to a certain point

• Principal of Surplus productivity - Correct Answer factors of production that generate

net income, which is then attributed to the land and tends to set the value

• Principal of Supply and Demand - Correct Answer market value is determined by the

interaction of market forces such as the quantity of available properties and the interest of buyers able to purchase them

• Principal of highest and best use - Correct Answer considers legal permissibility,

physical possibility, financial feasibility and maximum productivity

• Principal of Substitution - Correct Answer a buyer will pay no more for a property

than the cost of acquiring a similar and equally desirable property

• Principal of Contribution - Correct Answer value of a property attribute relates to the

value it adds to the overall value of the property. basis by which adjustments are made to the sale prices of comparable properties

• Principal of Progression - Correct Answer properties in the same area are

dissimilar, the property with the lesser value will be enhanced in value its proximity to properties of greater value.

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• Principal of Regression - Correct Answer where properties in the same area are

dissimilar, the property with the greater value will be adversely affected in value by its proximity to properties of lesser value

• Principal of Anticipation - Correct Answer value is created for the buyer by the

expectation of future benefits, whether based on money or amenities

Administrative penalties - Correct Answer - actions breached a section of rules and deemed potentially serious

Advisory Notes - Correct Answer Technical breach of legislation

• ex. forgetting brokerage name on marketing

Amendments to the Act - Correct Answer - can be made by provincial legislature with recommendations by the Minister of Service Alberta

Amendments to the rules - Correct Answer The rules contain the day to day activities

• council has the authority to create and amend

Annual general meetings - Correct Answer - must be held within 15-months of last one

Appraisal Process - Correct Answer 1. define problem

• Complete preliminary inspection and appraisal plan

• Collect and analyze data

• Decide on Approach

• Reconcile final property value estimate

• Write appraisal report

Approaches to complaints agent agent - Correct Answer - Advisory notes

• technical breach
• letter of reprimand
• less serious, already received advisory note
• Administrative penalty
• potentially serious
• hearings
• severe in nature

benefits of economic growth - Correct Answer depletion of natural resources

Benefits of RECAS trust assurance and practice review program - Correct Answer - effective record keeping and administrative procedures

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