Real Estate Council of Alberta Fundamentals Practice Exam

What is one example of a commission that can lead to disputes?

1. A young couple moving into a 55+ building

2. A homeowner repainting their house

3. A landlord renewing a lease

4. A property sold below market value

The correct answer is: A young couple moving into a 55+ building

The situation involving a young couple moving into a 55+ building can lead to disputes primarily due to age-related restrictions that are typical in such communities. Many 55+ buildings enforce policies that limit residency to individuals above a certain age, often resulting in conflicts when younger individuals attempt to enter the community. This situation may lead to disputes over compliance with community regulations, potential eviction actions, or misunderstandings about eligibility. In contrast, the other scenarios provided (homeowners repainting their house, landlords renewing leases, or properties sold below market value) typically involve straightforward decisions without the potential for significant disputes rooted in regulatory or community standards. Homeowners may repaint their houses within certain guidelines, lease renewals usually follow established law and agreements, and selling a property below market value, while it may raise questions about valuation, does not inherently invite chronic disputes or regulatory scrutiny like the occupancy of a 55+ building does.