Unit 1 RECA Exam Questions with
correct Answers
Define real estate - Answer- refers to land and fixed improvements to land (permanent)
What are the building classifications - Answer- Residential
Commercial
Retail
Institutional
Agricultural
Real Estate Sectors/Property Types - Answer- Residential
commercial rural
property management
characteristics that identifies real estate as limited resource - Answer- scarce
characteristic that defines real estate as indestructable - Answer- durable
real estate as immobile - Answer- fixed
parcels of land being different from eachother - Answer- unique
characteristics that describe how transactions are handled between buyer and seller -
Answer- private
charactersitics that identifies the slow response of these 2 market forces - Answer-
supply and demand
identifies the inability to market properties for all areas of real estate in a universal
approach - Answer- standardized
real estate occuring in a defined area - Answer- local
charactersitcs of economic growth - Answer- natural resources
capital
rate of savings
tech progress
real estate effects the economy - Answer- housing starts
real estate sales
building permits issued
vacancy rates and occupancy rates
, factors of production - Answer- land, labor, capital, entrepreneurship
non price determinants of supply (CSENP) - Answer- costs of production
state of techology
expectations of producers
number of supplies to the market
government taxes and subsidies
non price determinants of demand (CACCP) - Answer- consumers expectations
available credit
consumer disable income
consumer tastes and preferences
price substitutes or comprementary product
changes in economic activity - Answer- seasonal fluctuations
business cycles
secular trends
types of real estate market - Answer- balanced market
buyers market
sellers market
market bubble - Answer- prolonged and self sustaining accelerlation in real estate,
combined with construction agressvie lending and economic growth
bubble burst - Answer- rise in interest rates, and real estate prices decreases to more
realistic levels
resource market - Answer- facilitate exchange of land labour capital and
entrepenuership
steps to bubble bursting - Answer- economy expands
wages rise unemployment falls
real estate prices acclerate
construction boom
rising interest rates
BUBBLE BURSTS
demand for housing decreases
Real estate prices plumet
property owners left with overvalued asset
some households unable to pay off debt
the real estate council of alberta - Answer- is the independent non-government body
responsible for governing industry professionals in the real estate, mortgage brokerage
and real estate appraisal indsutries
correct Answers
Define real estate - Answer- refers to land and fixed improvements to land (permanent)
What are the building classifications - Answer- Residential
Commercial
Retail
Institutional
Agricultural
Real Estate Sectors/Property Types - Answer- Residential
commercial rural
property management
characteristics that identifies real estate as limited resource - Answer- scarce
characteristic that defines real estate as indestructable - Answer- durable
real estate as immobile - Answer- fixed
parcels of land being different from eachother - Answer- unique
characteristics that describe how transactions are handled between buyer and seller -
Answer- private
charactersitics that identifies the slow response of these 2 market forces - Answer-
supply and demand
identifies the inability to market properties for all areas of real estate in a universal
approach - Answer- standardized
real estate occuring in a defined area - Answer- local
charactersitcs of economic growth - Answer- natural resources
capital
rate of savings
tech progress
real estate effects the economy - Answer- housing starts
real estate sales
building permits issued
vacancy rates and occupancy rates
, factors of production - Answer- land, labor, capital, entrepreneurship
non price determinants of supply (CSENP) - Answer- costs of production
state of techology
expectations of producers
number of supplies to the market
government taxes and subsidies
non price determinants of demand (CACCP) - Answer- consumers expectations
available credit
consumer disable income
consumer tastes and preferences
price substitutes or comprementary product
changes in economic activity - Answer- seasonal fluctuations
business cycles
secular trends
types of real estate market - Answer- balanced market
buyers market
sellers market
market bubble - Answer- prolonged and self sustaining accelerlation in real estate,
combined with construction agressvie lending and economic growth
bubble burst - Answer- rise in interest rates, and real estate prices decreases to more
realistic levels
resource market - Answer- facilitate exchange of land labour capital and
entrepenuership
steps to bubble bursting - Answer- economy expands
wages rise unemployment falls
real estate prices acclerate
construction boom
rising interest rates
BUBBLE BURSTS
demand for housing decreases
Real estate prices plumet
property owners left with overvalued asset
some households unable to pay off debt
the real estate council of alberta - Answer- is the independent non-government body
responsible for governing industry professionals in the real estate, mortgage brokerage
and real estate appraisal indsutries
