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Understanding the Structure, Function, and Impact of RECA's
Residential Complexes
An Ultimate Guide to Exam Study Guide Latest updated
Inclusive Residential unit 1 to unit 9
3 fundamental principles of fiduciary duty. AKA the 3 principles that give rise to fiduciary duties in a representation relationship: - ansTrust and Confidence, Best Interests, Loyalty 8 General Obligations of REPs - ansExercise Care and Skill, Act Honestly, Negotiate Favourable terms, Maintain Confidentiality, Disclose Information, Act in Person, Obey Lawful Instructions, Perform Mandate 6 Points of Fiduciary Duties - ansProvide Utmost Loyalty, Not make secret profits, Handle Confident Information Properly, To Account, Avoid conflicts of interest, Disclose conflicts of interest. "To Account" meaning - ansReal estate professionals must account for all money and/or property belonging to the client. This duty compels a real estate professional to safeguard all money, documents, property, and information entrusted to them that relate to the client's transaction. "arm's length transaction" meaning - ansIn real estate, an arm's length transaction is when the buyer and seller each act in their own self-interest to try to get the best deal they can. 4 common examples of deals that are not arm's length transactions - ansSales between friends or family members Sales between an employer and his or her employees Sales between a parent company and one of its subsidiaries Sales between a trust and its beneficiaries 2 options if REP cannot provide competent service to a client - ansBe Supervised, Refer To determine if a REP has met the standard of care in a given situation, an objective review of all facts is performed. 3 measures to determine if that has been met. - ansProfessional Standards, Professional Norms and Practices, Expert Testimony "Expert Testimony" Meaning - ansOther real estate professionals, or experts, may provide information as to the expectations of a reasonable and prudent real estate professional and how they would have conducted themselves in similar circumstances. 9 points in "Meeting the Standard of Care" - ans1. Know the Type of Consumer Relationship
- Act consistent with the relationship chosen 3. Know the Brokerage Service 4. Know the brokerage Policies and procedures 5. Be Aware of Market and Practical Issues 6. Make Reasonable Efforts to Confirm information 7. Exercise Due care when preparing documents
- Seek Advice when appropriate 9. Be a Lifelong learner When is written disclosure needed? - ansWhenever a REP receives or is about to receive confidential information; including the consumer's real estate needs, motivation, or financial ability. 4 things that must be included in written disclosure - ans1. Whether the REP has entered into a representation relationship with another party to the real estate transaction 2. The service the REP will provide the consumer 3. Any conflicts of interest that may exist between the consumer and the REP 4. Any additional facts or information that may influence the consumer's decision to proceed with the real estate relationship. Which guide must REPs practicing residential real estate must REPs provide to consumers for relationship disclosures (the guide includes all information REPs must include in written disclosures under the Rules) - ansRECA's Consumer Relationship Guide For needed when non-representation relationship is selected by consumer (then becoming a customer) - ansCustomer acknowledgement form
Understanding the Structure, Function, and Impact of RECA's
Residential Complexes
An Ultimate Guide to Exam Study Guide Latest updated
Inclusive Residential unit 1 to unit 9
Form needed when representation relationship is chosen by consumer (then becoming a client) - ansWritten Service Agreement Does RECA's consumer relationships guide, customer Acknowledgement forms and written service agreements contain mandatory content? Can it be changed? - ansYes. Although these documents may be changed at the request of a consumer or tailored to the needs of a brokerage (eg. logo added, broker information added), content, meaning and intent must not be altered. Representation relationships are NOT established by the following 4 actions - ans1. REP conveying documents or providing general information to consumers 2. REP using certain terms to refer to consumers (eg client customer) 3. Consumers using certain terms to refer to REP (eg. Real estate agent, lease agent, buyers agent) 4.Consumers paying remuneration (ie commission, fees) to the REP's brokerage 5Ds of Role Clarity and Consistency (5 words) - ans1. Discuss 2. Determine 3. Document 4. Disclose 5. Do Longer explanations of the 5Ds of Role Clarity and Consistency (sentences) - ans1. Discuss the Real estate relationship 2. Determine your representative capacity 3. Document your representative capacity in writing 4. Disclose your representative capacity (ie. seller's agent, buyer's agent, landlord's agent, or tenant's agent) 5. Do actions with your representative capacity consistent with your established relationship 6 Benefits of Role Clarity and Consistency - ans1. Meets Regulatory Requirements 2. Enhances professionalism 3. Prevents Unintended relationships 4. Clarifies responsibilities to consumers 5. Clarifies services to consumers 6. Reduces disputes True or False - Making referrals is a fiduciary duty that REPs owe to clients - ansFalse True or False - the standard of care for a REP in a particular set of circumstances is determined subjectively - ansFalse "subjectively" meaning - ansIn a way that is based on personal feelings, tastes, or opinions. "Objectively" meaning - ansin a way that is not influenced by personal feelings or opinions. Defined in the Rules, what does confidential information include (3 things in specific) - ansAny information concerning the client including the client's financial or personal situation, the client's real estate, and transactions involving the client. What does commercial activity refer to? - ansAny transaction, act, or conduct involving the exchange of goods and/or services. Is Buying/selling/leasing considered commercial activity? - ansYes, the purchase, sale, or leasing of real estate is considered a commercial activity In Alberta the protection of individuals' personal information during real estate transactions is regulated by which privacy legislation (x2) - ansPIPEDA (The Personal Information Protection and Electronic Document Act) and PIPA (The Personal Information Protection Act) Is PIPEDA a provincial or a Federal legislation? - ansFederal Does PIPEDA legislation apply to Alberta? - ansYes and No, since Alberta has PIPA (which is substantially similar to PIPEDA so accepted), it does not all to all organizations involved in commercial activities. Which 2 areas does PIPEDA legislation continue to apply to in Alberta (and provinces that have set up legislation like PIPA) - ansPIPEDA continues to apply to 1. Federally regulated businesses (such as banks, airlines, and telecommunication companies. 2. Organizations
Understanding the Structure, Function, and Impact of RECA's
Residential Complexes
An Ultimate Guide to Exam Study Guide Latest updated
Inclusive Residential unit 1 to unit 9
is sent or when the recipient has made an inquiry about the real estate professional's business services with the previous 6 months Explain "Existing Non-business Relationship" as it relates to Implied Consent being obtained for CEMs - ansThe recipient has, within the previous 2 years made a donation or gift, or volunteered for a registered charity, or been a member of a not-for-profit organization, such as a club or committee Explain "Conspicuous Publication or Disclosure of contact information" as it relates to Implied Consent being obtained for CEMs - ansThe recipient clearly publishes or discloses their electronic contact information without restrictions (eg opting out of receiving any unsolicited CEMs) and the message the recipient receives has to do with their activity or functions in a business capacity Is Implied consent time-limited? If so, for how long? - ansImplied consent is generally time- limited which means that it typically last for a period of 2 years after the event that starts the relationship (eg a client enters into a written service agreement with a real estate professional) 4 requirements REP must ensure so that CEMs are CASL compliant - ans1. The recipient's verbal, written, or implied consent is received and retained 2. Identification information is included in the CEM. This refers to the stated purpose for requesting consent, the REP's name and contact information, the brokerage name and address, phone number, email, and web address 3. Provide a free unsubscribe mechanism in each CEM that allows recipients to withdraw their consent from receiving future communications. The unsubscribe mechanism must be clearly set out and it must occur within 10 days of the request 4. Ensure the contents of the CEM are not false or misleading 4 instances where obtaining consent (ie express or implied) and complying with the form and content requirements for sending CEMs do not apply. - ans1. Existing business relationship (done business together in the past 2 years or recipient made inquiry in the past 6 months) 2. Existing Family/Personal Relationship (Family and where there has been direct, voluntary two-way communication) 3. Responding to requests 4. Enforcing a Legal Right (satisfy legal obligations or to enforce or provide notice of existing or pending legal rights or actions) 4 Points on the requirements for third-party referrals - ans1. Consent requirements to do not apply to the first CEM sent 2. The identification and unsubscribe mechanism must be included 3. the CEM must disclose the full name of the individual(s) who made the referral 4. Must state that the CEM is sent as a result of the referral CASL fail to comply penalties for REPs - ansRange from warnings to criminal charges, civil charges, and personal liability. Monetary penalties can be as much as $1 million for individuals and $10 million for businesses Describe privacy (of personal information) - ansThe ability to retain control over an individual's personal information 3 important reasons why revealing seller's reasons or motivation to sell (in hopes of attracting offers) is not a good strategy. - ans1. It clearly violates the obligation they owe their client under the representation relationship 2. If the seller receives an offer to purchase resulting from the buyer having learned their reason or motivation for selling, the buyer may not intend to pay the market value for the property as the buyer seeks to take advantage of the seller's perceived need to sell. Even through the negotiation process, the buyer may hold the advantage because of their knowledge of the seller's confidential reason or motivation to sell.
- Once the seller's reason or motivation to sell is revealed the spread of this information is
Understanding the Structure, Function, and Impact of RECA's
Residential Complexes
An Ultimate Guide to Exam Study Guide Latest updated
Inclusive Residential unit 1 to unit 9
hard to control. The seller's REP has no ability to take back this information, control who receives it, know when it may surface, or how it may be used to the seller's detriment. What does the Principal of Substitution state - ansThe Principal of Substitution states that a buyer will pay no more for a property than the cost of acquiring a similar and equally desirable property available on the market. 3 Disadvantages to clients of volunteering their confidential information - ans1. REPs, other than the REP representing them, are under no obligation to keep this information confidential. 2. Confidential information that clients reveal to other REPs may ultimately disadvantage them in the ability to negotiate the best terms and conditions in the sale or purchase of the property. 3. The client's disclosure of confidential information to other REPs can frustrate the clients REP in doing their best efforts on behalf of the client. Why should REP document when a client shares their confidential information to out side REPs or publicly (after the representing REP has explain the disadvantages of doing so) - ansDocumenting the discussion and the client's decision to disclose will provide proof that the discussion occurred and the the client made an informed decision to proceed contrary to the advice of the REP. Public awareness of why the client is selling or buying, the client's motivation to sell or buy, the price the client will accept or pay, and details of any offers received or submitted was not the result of the REP failing to protect the client's confidential information. The client made an informed decision not to protect their information and therefore not to protect themselves and their best interest in the potential sale or purchase of property 5 examples/locations of inadvertent disclosure - ansBrokerage meetings, Real Estate Open Houses, Public Open Houses, Property Tours, Property Viewings 4 key differences between investor clients - ans1. Investor Type (fixing and flipping for profit, or renting out for cash flow) 2. Investor Objectives (investment strategy, objectives and time horizon (short-term or long-term) 3. Investor Terminology: Know and explain different terms (eg. cash flow, occupancy rate, vacancy rate, gross income) 4. able to prepare and explain property valuation for revenue properties. such as capitalization rate, gross income multiplier, or monthly rental factor "gross income multiplier" meaning - ansA gross income multiplier (GIM) is a rough measure of the value of an investment property. It is calculated by dividing the property's sale price by its gross annual rental income. "monthly rental factor" meaning - ansA method of income analysis for small income producing properties with a single rental unit. The Monthly Rental Factor relates the gross monthly income of comparable properties to the value of the subject property. Monthly Rental Factor formula - ansMonthly Rental Factor = Value รท Gross Monthly Income. Capitalization Rate formula - anscap rate = net operating income / property value What does POA stand for? - anspower of attorney Power of Attorney - Donor - ansthe person who appoints another individual to act on his or her behalf Power of Attorney - Attorney - ansthe person(s) appointed to act on the donor's behalf Power of Attorney - Witness - ansThe person who is present when the POA is created and signs the document to confirm its authenticity and legality
Understanding the Structure, Function, and Impact of RECA's
Residential Complexes
An Ultimate Guide to Exam Study Guide Latest updated
Inclusive Residential unit 1 to unit 9
by the donor. If it does not include such a statement, it is not an Enduring POA and terminates if the donor becomes mentally incapacitated. to grant a Power of Attorney must Form 20 be used? - ansUnder the legislation, a form is prescribed (form 20) however, it is not mandatory for the specific form to be used. What is the Power of Attorney that specifically refers to the ability to deal with land - ansSpecial Power of Attorney (sometimes referred to as Limited Power of Attorney) When using a Special Power of Attorney, until when are the owner's (donor)'s rights suspended until - ansThe rights of the owner (donor) to deal with the land is suspended until it is revoked and discharged from the property's Certificate of Title. 5 things REP must perform when working with individuals acting as attorney for POA. - ans1. Read the POA carefully to ensure it has been validly executed 2. Confirm the identity of the individual named as the attorney 3. Verify that the donor is still alive otherwise the attorney does not have authority to act 4. Confirm the powers granted in the POA authorize the activities related to the real property 5. Conduct a title search through SPIN to ensure the attorney has been registered on the Certificate of Title and can act on the donor's behalf in the real estate transaction. 3 functions reviewing a copy of the POA document - ans1. It provides proof of the client's role as an attorney under the POA 2. It confirms if the client has the right to contract on behalf of the donor in the real estate transaction 3. It sets out the client's responsibilities and requirements they must meet while fulfilling their role under the POA 4 examples of POA used for fraud - ans1. An individual who is appointed as attorney by his or her spouse sells property that is owned jointly by them without the knowledge or consent of the spouse and keeps the proceeds from the sale. 2. An individual who is appointed as an attorney for an elderly or incapacitated parent sells the parent's property without their knowledge and keeps the proceeds for their own benefit 3. A fraudulent POA is prepared for a fictitious person, presented as a valid legal document, and is used in a real estate transaction
- A fraudulent POA is prepared with an individual';s stolen identity and forged signature, and used in a real estate transaction. When a person lacks the capacity to manage their estate, which may include ownership of real estate, a trustee may be appointed under which Act? - ansAdult Guardianship and Trusteeship Act (in 2009, this statute replaced the Dependent Adults Act) Details of who a trustee can be (x3) - ansan individual over 18 years of age, a trust company, or the Public Trustee. Note: the trustee is not required to live in Alberta or Canada. How is the Trustee's authority limited? - ansauthority is limited to the powers described in the court order and trustee has a duty to account to the court and maintain detailed records of all transactions. Is a trustee shown on the title? - ansYes, under the land Titles Act (section 128), the trustee is deemed to be the absolute owner of the land and is shown as owner on the certificate of title Who may appoint a trustee when creditors make an order or a person files an assignment in bankruptcy. - ansThe Court of Queen's Bench of Alberta 3 things REPs must do when representing a client who is acting as a trustee in a transaction - ans1. Obtain a copy of the legal document appointing the person as trustee. (this will verify that it has been properly executed, identify who the representative is and the legal authority granted. 2. Conduct a title search through SPIN and confirm the trustee appears on the
Understanding the Structure, Function, and Impact of RECA's
Residential Complexes
An Ultimate Guide to Exam Study Guide Latest updated
Inclusive Residential unit 1 to unit 9
certificate of title 3. Keep a copy of the legal document appointing the trustee in the brokerage file as required by the Rules regarding brokerage record keeping Who is the executor appointed by (x2) - ansby the testator of the will (ie the individual who made the will) or by the court if there was no prior appointment. Executor's role may also be referred to as... (x3) - ansan administrator, personal representative or executrix (if female) "Tenant in common" meaning - ansTenancy in common is a form of joint possession of real property. Each tenant in common possess a share of the property. ... Unlike joint tenants, tenants in common may each own different percentage shares of the property. In other words, you can have 49 percent interest in the property or even 1 percent interest. 4 Obligations of an executor - ans1. to honour the wishes and act in the interests of the deceased. 2. is accountable to the beneficiaries 3. Must keep records of all transactions 4. must provide the beneficiaries with a final statement of account Is the executor the absolute and beneficial owner for the purpose of registered dealing with the land - ansFirst the Executor must apply to be registered as the owner on the title. But Yes, under the Land Titles Act (section 116), if the executor is named on the property's Certificate of Title then he or she is the absolute and beneficial owner for the purpose of registered dealings with the land 3 things REPs must do when representing a client who is acting as an executor in a transaction - ans1. Obtain a copy of the legal document appointing the person as executor. (this will verify that it has been properly executed, identify who the representative is and the legal authority granted. 2. Conduct a title search through SPIN and confirm the executor appears on the certificate of title 3. Keep a copy of the legal document appointing the executor in the brokerage file as required by the Rules regarding brokerage record keeping 3 examples of when a client appointed as executor may require advice, assistance or involvement of others before making a decision - ans1. Decisions of the executor subject to review by an estate lawyer or an accountant 2. Decision of the executor that require discussions with or agreement to the beneficiaries 3. Decisions that require join agreement by multiple executors. Note: REPs should make sure terms and conditions allow for sufficient time for the clients and others to complete or perform the specified activities. "Assignees/Assignors/Assignment" meaning - ansIn relation to real estate, an assignee is a person to whom an interest or right in real property is legally transferred. An assignor is the person who transfers a right or interest to the Assignee. An assignment is a legal sales transaction whereby the original buyer (ie the Assignor) of a property sells and thereby transfers his or her interest and obligations under the original contract to a new buyer (ie the Assignee) prior to the transaction being completed. Under which statute must an Assignment be in writing and signed by the parties involved (or by the persons lawfully authorized on their behalf) - ansThe Statute of Frauds True or false - In residential real estate, contract holders may assign leases, new home sales agreement, or purchase contracts to other individuals and entities. - ansTrue, Generally all contracts are assignable unless specifically prohibited by law or by the terms of the contract What do Articles of Incorporation set out - ansArticles of incorporation set out the structure and basic governance of the company, including the legal name and address of the business, class of shares, number of directors, and any restrictions or provisions complied with by the corporation
Understanding the Structure, Function, and Impact of RECA's
Residential Complexes
An Ultimate Guide to Exam Study Guide Latest updated
Inclusive Residential unit 1 to unit 9
Judicial sale - Reason = Owner Death - ansDisputes between property owners triggered by the death of one owner regarding the distribution of the deceased owner's interest in the property. This may occur when the property was held as tenants in common. In this case, the beneficiary of the deceased owner's estate inherits their interest in the property as opposed to the other owners. The other owners may seek to resolve the dispute through the courts resulting in the sale of the property Judicial sale - Reason = Expropriation - ansA dispute between a property owner and the government that is attempting to expropriate the owner's land for the public good. "eminent domain" meaning - ansthe right of the government, or its agencies, to take private property for public use Judicial sale - Reason = Other Debt - ansThe creditor seeks payment for debts owed by the property owner in default. It usually relates to a legal settlement giving the courts the authority to order the sale of the property "Forclosure" meaning - ansForeclosure is a legal action supervised by the court that a lender pursues following a borrowers default on a mortgage If a borrower defaults on the terms and conditions set out in the mortgage agreement, the lender can initiate foreclosure proceedings as established in... (x4) - ansLaw and Property Act, Land Titles Act, Alberta's Rules of Court, and contract law. For foreclosures, what happens if the borrower is unable or unwilling to reconcile the outstanding debt - ansFirst a borrower is granted certain rights that provide procedural safeguards to slow the foreclosure process, if the borrower is unable or unwilling to reconcile the outstanding debt, the lender can apply to the court and seek an Order for Judicial Sale of the property. The Alberta Rules of Court and the Law of Property Act (Part5) provide for the Judicial Sale For a Foreclosure, what happens if an offer proves acceptable to the court - ansIf an offer proves acceptable to the court, the lender applies for an order confirming the sale and vesting the title (legally giving the title) of the property to the buyer within 25 days of the tenders closing Correct or incorrect - Lisa, a real estate professional, just list a property offered for judicial sale as part of a foreclosure proceeding. Lisa considers all reasonable offers and presents them to the lender. The lender accepts one of the offers. Lisa then provides the lender with all the transaction-related documents for its files. - ansIncorrect - In a judicial sale, the court provides the direction to the REP (not the lender). It is the court that decides the outcome of the transaction. REPs do not have the authority to consider any offers. In addition, they must provide all transaction-related documents to the broker for its records. REPs who provide complete and accurate information when working with clients, are demonstrating what general obligation? A) Perform Mandate or B) Exercise care and Skill - ansB) Exercise care and Skill 9 things that, when representing sellers, REPs can do - ans1. Identify the features, qualities, and advantages that relate to the sellers' property 2. Describe the property appropriately in the applicable listing service and property databases. 3. Market the property based on the features, qualities, and advantages. 4. Promote the property and answer their buyers' questions regarding it. 5. Accurately answer questions regarding the property to other REPs.
- Avoid misrepresentation of the property due to inaccurate/incomplete information 7. Identify more of the due diligence activities that they need to perform on behalf of the sellers
Understanding the Structure, Function, and Impact of RECA's
Residential Complexes
An Ultimate Guide to Exam Study Guide Latest updated
Inclusive Residential unit 1 to unit 9
- Demonstrate professional competence and value-added service, instilling seller confidence
- Provide support and guidance during the sale of the property 7 things that, when representing buyers, REPs can do - ans1. Understand buyer wants and needs when seeking a property 2. Select appropriate properties for buyers to view based on their needs and wants 3. Answer buyers' questions regarding property features and attributes
- Avoid misrepresentation of property to the buyers due to inaccurate information 5. Identify the due diligence activities they need to perform on behalf of the their buyers 6. Demonstrate professional competence and value-added service, instilling buyers' confidence 7. Provide support and guidance during the purchase of a property Key Topic Discussion - Seller/Buyer Client - Price - ansSeller: Do price valuation; discuss list price. Buyer: Ask about financial qualifications Key Topic Discussion - Seller/Buyer Client - Location - ansSeller: Determine property location. Buyer: Determine preferred location(s) Key Topic Discussion - Seller/Buyer Client - Age - ansSeller: Determine property age. Buyer: Determine property age preference(s) Key Topic Discussion - Seller/Buyer Client - Features - ansSeller: Recognize property Features. Buyer: Determine property features preference(s) Key Topic Discussion - Seller/buyer Client - Type - ansSeller: Identify property type. Buyer: Determine property type preference(s) Key Topic Discussion - Seller/buyer Client - Style - ansSeller: Identify property style. Buyer: Determine property style preference(s) Key Topic Discussion - Seller/buyer Client - Size - ansSeller: Measure overall property size. Buyer: Determine need for specific property size Key Topic Discussion - Seller/buyer Client - Other needs/wants - ansBoth: Ask, listen, learn what is important 8 key topics REPs should discuss with their clients - ans1. Price 2. Location 3. Age 4. Features 5. Type 6. Style 7. Size 8. Other needs/wants For representing buyers, REPs are expected to have a general knowledge of the areas in which they practice, including... (x4) - ansland use, transportation issues, approved developments, and publicly available information that may influence the decision of the buyers you represent Property features typically relate to... (x4) - ansthe age, type, style and layout of the property Before residential construction can commence, intial aspects must be addressed such as ...(x2) - ansacquiring required permits from the municipality indicating where the residential development will be built and ensuring compliance with the Alberta Building Code during construction 4 types of permits used in the residential construction process - ans1. Development permits (sued for new subdivisions) 2. Building Permits (used for new residential buildings 3. Occupancy Permits (used for new residential buildings) 4. Subsequent Building Permits (used for changes to existing buildings) According to the Land Use Bylaw, what must a builder obtain before residential development of any land may occur - ansthe builder must obtain a Development Permit from the municipality
Understanding the Structure, Function, and Impact of RECA's
Residential Complexes
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What is an occupancy permit? - ansa part of the new residential construction process. The builder must have the building inspected and pass inspection to secure one before the residence is approve for occupancy by the purchaser. If it doesn't pass, builder needs to remedy all code violations or code deficiencies and the have the building reinspected. A new residential construction typically includes how many warranty programs for buyers? - ans2. The Developer Warranty programs (aka the Builder Warranty Program) and Extended Warranty Programs What does the Developer Warranty Program usually include? - ansDevelopers usually provide a one-year warranty on the materials and the workmanship used to construct the residence. This applies to fee simple properties as well as condominiums. When does the 1 year developer warranty start? - ansTypically starts when the buyer takes possession of the property. Do Extended Warranty Programs work in conjunction with the builder's warranty? - ansYes What are Extended Warranty Programs also referred to as? - ansthird-party warranty program because they offer by organizations unrelated to the developers. When did Alberta's New Home Buyer Protection Act start to require developers to provide buyers with mandatory extended warranty coverage? - ans What do Extended Warranty Programs Typically provide? - ans10-year protection against structural defects, in addition to other coverages that range from one to five years. What is the new home warranty registry? - ansThe Government of Alberta maintains an online new home warranty registry. Buyers can use the registry to determine if a property has warranty coverage and the dates, each time of warranty coverage expires. This only applies to properties built after February 2014 What must REPs remember when a buyer buys a house that is less than 10 years old? - ansThere may be some extended warranty coverage remaining on the property. If the extended Warranty Certificate is still available, it can facilitate the transfer of the extended warranty into the buyer's name as the new owner of the property. How to know the age of a property? - ansThe municipality is the most reliable source for information regarding the date a residential property within their jurisdiction was built. The year the property was built is usually sufficient in terms of the date to be entered for most listing services and property databases. For new properties the municipality should have a building permit which provides an indication of when the property was built. Property documentation can be found through the municipal office or on the municipal website. Age- related information may be available in the building permits department or the property assessment department (ie. Municipal property tax department). Larger Municipalities may have agreements with listing services or property databases to make property information available to their users or members. Should a REP alter property information that the municipality has auto-populated into the listing service or property database? - ansNo. Do not alter property information that the municipality has auto-populated into the listing service or property database. If you believe the information is incorrect or contradictory to the seller's information, advice the seller that they can take the matter up with the municipality 3 Types of renovations - ansUpdating, upgrading and additions Renovations - The difference between updating and upgrading - ansUpdating is improving the residence by modernizing its finishes which are often cosmetic in nature; like re-doing
Understanding the Structure, Function, and Impact of RECA's
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older kitchen cabinets, or replacing older carpet for new. Upgrading includes replacing existing features or by adding new features; like adding a high-efficiency furnace, or replacing old carpet with new hardwood or adding an air purification system when none existed before. If there are updates, upgrades or additions to the property, should the details and the year they were completed be listed and retained in the client's brokerage file? - ansYes When (x5) must a new application for a building permit be obtained? - ans1. Build an addition to the existing residence 2. Demolish or relocate the existing residence 3. Complete major alterations or renovations to the existing residence 4. Build a supplemental structure for occupation (eg guest house) 5. Build a supplemental structure equal or greater than a specified size (eg garage) Which Act establishes the specific requirements for each type of permit? - ansSafety Codes Act In general when are permits required? - ansIn general they must be obtained when the work may risk the health or safety of individuals during or after the work is completed. Typically permits must be obtained before work starts on any of the following (x7) - ansFire, Gas, Electrical, plumbing, building demolition or relocation, building alteration, renovation or addition, Private sewage disposal system Where must requests for permits be submitted? - ansRequests for permits must be submitted to the accredited municipal authority, agencies contracted by the municipality, or the government of Alberta. Accreditation signifies that the municipality is authorized by the safety Codes Counsel to administer the Safety Codes Act and its related legislation. Do permit guarantee the quality of work or materials? - ansNo, however all permits include conditions stating what must be done regarding the proposed work. 5 benefits of obtaining building permits (words) - ans1. Review 2. Inspect 3. Record 4. Insurance 5. Resale 5 benefits of obtaining building permits (words and explanation) - ans1. Review (Certified safety codes officer does a thorough review of the proposed work, which can prevent costly mistakes/identify non-compliance prior to commencement of construction 2. Inspect (Certified safety codes officer inspects confirming that all is up to code 3. Record (owner receives a record that all is up to code) 4. Insurance (helps to receive property insurance coverage. lack of may jeopardize insurance coverage 5. Resale (buyer/buyer's agent may ask if work done has completed with the application permit. The seller's ability to produce the appropriate documentation could help to facilitate the sale of the property Why is not getting necessary permits bad? - ansFailure to obtain may result in construction delays, health and safety issues, legal action and additional fees. Work complete on a building without the required permits can jeopardize the insurability of a property and its resale. What happens if a property's insurability is jeopardized? - ansIt can also jeopardize the ability of the borrower (ie buyer for new financing, seller for re-financing) to secure a mortgage on the property. lenders require proof of property insurance as part of the lending process as it protects their financial interest in the property. In addition, the respective municipality or the Government of Alberta may require any work lacking the proper permit to be removed or demolished.
Understanding the Structure, Function, and Impact of RECA's
Residential Complexes
An Ultimate Guide to Exam Study Guide Latest updated
Inclusive Residential unit 1 to unit 9
What does Sustainability relate to? - ansIt relates to environmental stewardship and involves the responsible planning and management of natural resources. What do sustainability efforts usually focus on? - ansThey usually focus on making buildings more energy or water efficient. Can also support sustainability by using recycled materials, materials harvested from renewable sources, and the use of sustainable manufacturing processes. What is Built Green? - ansa Canada-Wide, industry driven program that promotes eco- friendly construction practices through the voluntary participation of builders, renovators and product manufacturers. Participants in the program are interested in implementing sustainability in the business model in order to reduce the impact that residential construction and renovation has on the environment The Built Green program is focused on encouraging participants to use technology and practices that result in which 8 positive environmental outcomes? - ans1. Improve the energy efficiency of residential renovations 2. Improve the energy efficiency of new residential construction 3. Improve the indoor air quality of new residential construction 4. Improve the durability of residential construction products and buildings 5. Preserve natural resources during construction process and in the finished building 6. Reduce pollution and waste during construction and in the finished building 7. Reduce water usage during construction and in the finished building 8. Reduce short and long term maintenance requirements for finished buildings What is Accessibility in housing concerned with? - ansAccessible housing design in particular is concerned with those who have mobility issues and related physical limitations. A barrier is anything that inhibits the free and safe movement of an individual to and from and within a building. Barrier-free designs strive to remove as many access barriers as possible for those with mobility issues. 7 Examples of barrier-free design features that improve access include. - ans1. Wide doorways to accommodate the passage of wheelchairs or other devices. 2. Unified floor finishes to avoid breaks between different flooring treatments 3. Handrails along hallways and handgrips in bathrooms to prevent falls 4. Ramps for exterior and interior grade changes to improve access/egress. 5. Well-lit exterior and interior spaces to help with navigation and avoid falls. 6. Lever-style door handles to avoid having to grip rounded door handles 7. Door handles that are an appropriate height for those who may be in a wheelchair More information on Ramps - ansRamp dimensions and grade are typically prescribed in the locakl or provincial Building Codes. Ramp should also be non-slip surface. Residential Access Modification Program (RAMP) grants are up to $7500 per person per year, up to $1500 per person within 10 years What does Adaptability mean for housing - ansBarrier-free access evolved into the concept of universal design. Universal design is a design concept intended to make buildings more usable and convenient for occupants and visitors in response to their diverse abilities. incorporating features to make interior spaces more usable for current and future occupants. This concept incorporates the ability of occupants to make future alterations to a residence to meet their evolving age-related needs and the needs of intergenerational family members. What does "Aging in Place" mean? - ansResidential properties being able to meet the needs of owners through several life stages. As the population ages, more sellers may make
Understanding the Structure, Function, and Impact of RECA's
Residential Complexes
An Ultimate Guide to Exam Study Guide Latest updated
Inclusive Residential unit 1 to unit 9
adaptations to their properties and more buyers may seek properties with adaptive design features. 6 adaptable design features relating to "Aging in Place" - ans1. Level floors throughout with no sunken or raised portions 2. Doorways wide enough for a wheelchair or similar device 3. Supports for future handrails and grab bars built-in at the time of construction 4. Space for a future main floor bedroom and bathroom planned at the time of construction 5. Roughed-in plumbing for main floor bathroom built-in at time for construction 6. Interior walls that are demountable (movable) for re-configuring interior space to meet the changing needs of the occupants. What is meant by flexible floor plans - ansrefers to non load-bearing interior wall (demising wall), including retractable walls, demountable walls. What is a demountable wall? - ansDemountable walls provide buyers with more flexibility to redefine their interior space. They can be disassembled and stored or relocated within the residence to demise other interior space. Who are the baby boomers? - ansThose individuals aged 55 and over. Typically born between 1945 and 1964. According to CMHC they made up 25% of the population in 2006. How much of the population is estimated to be over 55 by 2036 - ans35% 6 points from American Institute of Architects(AIA) regarding clients housing wants, needs and preferences (in regards to aging population) - ans60 percent want kitchens and bathrooms remodelled for longer term use. 53% =ability to house multiple generations int he same residence, 51% ramps or elevators of potential to accommodate them in the future. 51% - ability to install backup power generators at the residence, 39% have dedicated guest rooms or in-lawsuits, 37% - have grade level entries and exits (no exterior stairs) 9 reasons clients may need adaptable housing - ans1. Blending families involving older children wanting their own space. 2. Line-in nanny/housekeeper coming to reside with the family 3. people who want to Age in place 4. Adult children leaving the residence in a few years 5. Family member with health issues remaining with the family 6.Elderly relative living with family 7. Friends wanting to live together but split space 8. Children of divorced parents visiting weekend/summers 9. Aging family member downsizing and needing help selecting a suitable residence. 2 construction methods used in residential properties - ansFactory-built construction and Site- built construction 4 benefits of Factory-built construction - ans1. Cost Saving (avoiding delays/damage from inclement weather) 2. Timeliness (factory-built structures take less time to construct) 3. Affordability (cost savings and faster production/assembly time) 4. Efficiency (construction is based on the most productive order of work) 5. Quality (maximized with factory-built process, consistency, and minimal wastage. What compliance must Factory-built houses have? - anshave Alberta Municipal Affairs label to demonstrate compliance with Alberta Building code. Manufacturer must also be certified by an accredited organization ro ensure manufacturing process complies with national standard for consumer health and safety. The Canada Standards Association (CSA) label affixed to a product guarantees it meets or exceeds the standards for CSA. The CSA A National Standard label is affixed to each unit. What must happen to Factory-built houses before they can leave the factory? - ansThe CSA A277 National Standards label is affixed to each unit once it is manufactured, has passed all
Understanding the Structure, Function, and Impact of RECA's
Residential Complexes
An Ultimate Guide to Exam Study Guide Latest updated
Inclusive Residential unit 1 to unit 9
installed 3. An inspection of any work prior to it being covered 4. An inspection of lot grading to ensure proper drainage 5. the building prior to it being approved for occupancy What are the 3 main components to the residential construction process? - ansThe building substructure, superstructure, and its lot "Building Substructure" meaning - ansrefers to the below grade construction of the foundation Which systems (x3) are included in the Building superstructure? (words) - ansBuilding envelope, building service systems, interior building features Included in the Building Superstructure, what is the "Building envelope"? - ansBuilding envelope: everything that encloses the structure and protects it from the elements. Included in the Building Superstructure, what is the "Building Service Systems"? - ansBuilding Service Systems supply the essential services (eg, Heat, electricity, water) to the property and will ultimately be connected to the applicable municipal service. Included in the Building Superstructure, what is the "Interior Building features"? - ansInterior building features complete the structure with interior walls, features, finishes and fixtures (ex. lighting fixtures, floor finishes, ceiling finishes, kitchen/bathroom cabinets) What is included in "building lot"? - ansIncludes lot grading, landscaping, and other exterior components (eg. landscaping, walkways, driveway and fences) 7 stages of Site-built Construction - ans1. Pre-construction planning 2. Substructure 3. building envelope 4. building service systems 5. building interior 6. lot grading 7. exterior components 1.Pre-construction planning Stage of Site-built Construction (3 POINTS) - ans1.The builder has completed plan, surveys, applications, and related documentation, 2. The builder has secured the requisite development permit, if applicable. 3. The builder has secured the requisite building permit to commence construction
- Construction of the Substructure Stage of Site-built Construction (3 POINTS) - ans1. Building location is determined and the excavation for the foundation is completed, 2. Foundation is constructed, including the foundation walls and floor 3. Lot is re-surveyed to ensure the foundation meets the location specifications before building construction proceeds
- Construction of the building envelope Stage of Site-built Construction (8 POINTS) - ans1. Floor and walls for the first level are framed in place on the foundation walls 2. Interior walls, both load-bearing and demising are erected at this time 3. Floor and walls for the next level are erected on the platform created by the first level 4. Each subsequent floor is assembled on the platform created by the previous completed level of the building. This process is repeated for each storey of the structure. 5. Once the top level of the building is complete, the roof structure is secured to the top level 6. Once the roof is in place, windows and exterior doors are installed. 7. Once the walls, windows, and exterior doors are in place the building is secured 8. The xterior cladding is installed, enclosing the building and protecting it from the elements
- Construction of the building service systems Stage of Site-built Construction (4 POINTS) - ans1. Once the building is enclosed, the various service systems are installed 2. Service systems include basic physical and mechanical systems necessary for the operation of the building (eg. heating electricity, plumbing) 3. Building service systems are not connected to the municipal services at this stage 4. Building service systems are inspected by the
Understanding the Structure, Function, and Impact of RECA's
Residential Complexes
An Ultimate Guide to Exam Study Guide Latest updated
Inclusive Residential unit 1 to unit 9
municipal authority, and if approved, municipal services are connected to the building service systems.
- Construction of the building interior Stage of Site-built Construction (2 POINTS) - ans1. Once Building service systems are installed, the interior walls are completed. 2. Interior fixtures are also installed and include such items are the lighting, bathroom fixtures, kitchen cabinets and kitchen fixtures.
- Completion of the lot grading Stage of Site-built Construction (2 POINTS) - ans1. Once the building interior is complete, lot grading must be completed 2. Lot grading is inspected by the municipal authority. If approved, a grading certificate is issued by the municipality
- Completion of any exterior components Stage of Site-built Construction (4 POINTS) - ans1. Once lot grading is complete, other landscaping elements are completed, such as laying sod and planting shrubs and/or trees 2. Exterior components of the property are also completed at this time, including the driveway, walkways, decks and patios 3. Once the property is substantially completed, it must be inspected by the municipal authority 4. When all municipal inspectors have signed off on the construction, the builder is issued an Occupancy Permit What is a floor joist? - ans(Derek's meaning) the wood that runs along the floor and meets with the floor beam What is the type of foundation used determined by what? Including what? (x8) - ansdetermined by site conditions, including topography, water table, location, soil type, building design, local building materials, local climate, and construction costs. What does the frost line refer to? - ansthe depth to which frost penetrates the ground is the frost line in Alberta shallow or deep? - ansDeep. in colder climates like Alberta, the frost line is generally quite deep Can buildings located in cold climates have shallow foundations? - ansWhen properly insulated, buildings located in cold climates can have shallow foundations. 3 things the foundation is comprised of - ansfootings, walls and a floor What is frost heave? - ansthe uplift of soil and any other ground material due to the expansion of freezing groundwater. Building Foundation related, what are "footings"? - ansFootings are wide sections of concrete that transmit the weight of the buildings to the soil. The footings of the foundation must be positioned below the frost line in order to avoid frost heave When excavating for a foundation, what size the hole dug (in relation to the size of the actual basement)? - ansWhen excavating for a foundation, the ground is dug and the hole created by the excavation is larger than the size of the actual basement Building Foundation related, what is "backfilling"? - ansOnce foundation walls are in place, some of the soil removed during the excavation is used to cover footings and to fill the gap between the foundation walls and the edges of the excavated hole. This process is called backfilling How strong do foundation walls need to be? - ansFoundation walls must be constrcuted to withstand the stresses being exerted on them by the backfilled soil and the weight of the building above. When is the foundation floor poured? - ansOnce backfill is complete, the concrete slab for the foundation floor is poured between the foundation walls
