RECA Exam Questions with 100% Correct Answers | Verified | Latest Update 2024, Exams of Advanced Education

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RECA Exam Questions with 100% Correct Answers |

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1. B: Which of the following may RECA amend from time to time? A) The Act B) The Rules C) The Regulations D) All the statements are correct
2. D: According to the Act, which of the following statements apply if an industry professional whose conduct is subject to disciplinary proceedings make application to withdraw from the profession? A) If the application is approved, RECA issues a news release B) If the application is approved, all disciplinary proceedings are terminated C) If the application is approved, it is a lifetime ban from all industry professions governed by RECA D) All the statements are correct
3. A: According to the Rules, which of the following statements is correct regarding written service agreements? A) Written service agreements must clearly indicate the names of all parties to the agreement B) All industry professionals are required to have written service agreements in place with all clients C) If a client refuses to sign a written service agreement, the industry professional must refuse services to that client D) All the statements are correct
4. D: A real estate professional's authorization to trade in real estate expired on September 30. However, the real estate professional continued to show properties on behalf of a property management company for which she received compensa- tion. Given her actions breached a section of the Rules and were deemed to be potentially serious, which of the following disciplinary outcomes would the real estate professional receive? A) Consent Agreement B) Letter of Reprimand C) Temporary Suspension D) Administrative Penalty
5. D: Which privacy legislation affects how Alberta real estate professionals handle client information? Privacy Information Act Right to Personal Privacy Act

Personal Information Protection Act Personal Information Protection and Electronic Documents Act

A) Statements I and II B) Statements I and IV C) Statements II and III D) Statements III and IV

6. A: When the licence of a real estate brokerage is suspended, what actions must real estate professionals who are registered with the brokerage take? A) They must cease to trade in real estate B) They must cancel their authorization with RECA C) They must apply for withdrawal from the profession D) They must become registered with another brokerage
7. A: Which of the following Professional Conduct Review outcomes is issued as a practice guideline for a technical breach of the legislation? A) Advisory Note B) Production Order C) Letter of Reprimand D) Administrative Penalty
8. B: Mary, a real estate professional registered with ABC Real Estate Brokerage, has agreed to purchase her neighbour's ranch. The seller of the property is not represented by a real estate professional. What level of disclosure does Mary need to provide? A) Disclosure level 1 B) Disclosure level 2 C) Disclosure level 3 D) No disclosure level
9. D: Pursuant to the Rules, which of the following is a result of an industry profes- sional's failure to immediately notify the Executive Director of changes to information provided in support of a licence application? A) Executive Director may refer the matter for a Professional Conduct Review B) Executive Director may suspend the industry professional's licence C) Executive Director may cancel the industry professional's licence D) All the statements are correct
10. C: Stan, a real estate professional registered with McAgent Real Estate Broker- age has just listed his commercial property for lease with his brokerage. Jim, another real estate professional registered with the same brokerage tells Stan that he has a client interested in leasing the property. What level of disclosure is required in this situation?

• A) Disclosure level
• B) Disclosure level

C) Disclosure level 3 D) No disclosure level

11. D: With respect to brokerage record keeping, which of the following statements is correct? Brokerage records must be kept in Alberta Brokerage records may be maintained in electronic form Brokerage records must be kept by the brokerage for 3 years Brokerage records must be accessible to RECA for inspection A) Statements I, II, and III B) Statements I, II, and IV C) Statements I, III, and IV D) All the statements are correct
12. C: Which of the following is NOT a purpose of RECA? A) To set and enforce standards of conduct for the industry B) To administer the Act as provided in the Act C) To amend the Act as determined by Council D) To protect against and suppress mortgage fraud
13. A: Which of the following statements does NOT apply to a duty- based approach to ethical decision-making? A) This approach seeks the best result for the most number of people B) This approach perceives an individual's intentions or motives as important C) This approach is based on a belief in a universal moral system of ethical reasoning D) This approach believes that an individual should do the right thing because it is the right thing to do
14. B: What is the maximum amount the Real Estate Assurance Fund may pay per claimant for damages or losses related to the services of a real estate professional? A) $100,000 maximum B) $35,000 maximum C) $25,000 maximum D) No maximum amount
15. C: What is the purpose of the Real Estate Assurance Fund? A) To compensate a real estate brokerage for the loss of commissions related to unsuccessful trades B) To compensate sellers when potential buyers fail to obtain the

required mortgage financing to purchase the property C) To compensate consumers who have received a court judgment against a real estate professional for fraud or breach of trust

D) To compensate property owners in the event that foreclosure proceedings are commenced during a real estate transaction

16. B: Which of the following statements describe civil liability? Private legal action between the disputing parties Public legal action between the government and the accused party Involves a plaintiff and a defendant appearing in court Established by the courts at the conclusion of legal proceedings A) Statements I, II and III B) Statements I, III and IV C) Statements II, III and IV D) All statements apply
17. A: Which of the following statements include actions that may be considered suspicious by a real estate brokerage? A buyer purchases a property without first viewing it A buyer purchases a property in the name of another person A buyer uses cash to purchase a property A buyer is slow to confirm their identity A) Statements I, II, and III B) Statements II, III and IV C) Statements I, III and IV D) All statements apply
18. C: Which of the following statements are correct regarding real estate broker- ages and privacy law? All brokerages within Alberta must comply with federal privacy legislation Brokerages must designate a Privacy Officer to be accountable for compliance Brokerages with privacy policies are not required to designate a Privacy Officer Brokerage privacy policies must be consistent with the applicable privacy legislation A) Statements I and II B) Statements II and III C) Statements II and IV D) Statements III and IV Next Question
19. A: Which of the following terms relates to the right of individuals to

have control over their personal information? A) Privacy B) Exclusivity

C) Inaccessibility D) Confidentiality

20. A: Which of the following statements describe benefits of REIX to the real estate profession? REIX enhances the image of the profession REIX has the potential to save on insurance costs The profession is active in managing the program and its risks Real estate professionals are protected against legal action from clients A) Statements I, II and III B) Statements I, III and IV C) Statements II,III and IV D) All statements apply
21. D: Which of the following is correct regarding the Occupational Health and Safety Act and the Occupational Health and Safety Code? A) This legislation applies to employees but not independent contractors B) This legislation includes information helpful to employees and independent con- tractors C) This legislation outlines employer's responsibilities for ensuring health and safety D) All are correct regarding this legislation
22. C: Brokers who use the VBRP typically have experience in which of the following roles? A) As mediators B) As arbitrators C) As negotiators D) As defendants
23. D: Which of the following statements best describe the concept of confidential information? It is information that the brokerage has deemed to be confidential It is information individuals identify to others as being confidential It may include both personal information and business information It is not readily available information which may have some sort of value A) Statements I and II B) Statements II and III C) Statements II and IV D) Statements III and IV

24. B: Which of the following is NOT considered a frequent cause of conflicts and disputes?

A) Assumptions made by real estate professionals B) Admissions made by real estate professionals C) Omissions made by real estate professionals D) Commissions made by real estate professionals

25. D: Which of the following are benefits of professional courtesy? It helps avoid legal proceedings against real estate professionals It helps avoid a professional conduct review being conducted by RECA It helps avoid the issuance of disciplinary outcomes by RECA It helps avoid claims being made against REIX A) Statements I, II and III B) Statements II, III and IV C) Statements I, III and IV D) All statements apply
26. B: According to the Rules, which of the following should occur before a real estate professional may act as a transaction facilitator? They must verbally agree to act as a transaction facilitator with each client They must enter into a written transaction brokerage agreement with each client The clients must have the opportunity to review their respective transaction broker- age agreement before signing it The clients must have the opportunity to get any questions answered before signing their respective transaction brokerage agreement A) Statements I, II, and III B) Statements II, III, and IV C) Statements I, III, and IV D) All statements apply
27. D: Which of the following measures are used to determine the standard of care for real estate professionals? A) Professionals standards B) Professional norms and practices C) Expert testimony D) All measures are used
28. D: Which of the following statements indicate the 3 fundamental principles upon which fiduciary duties are based? Loyalty

Best interests Act in person Trust and confidence

A) Statements I, II and III B) Statements II, III and IV C) Statements I, III and IV D) Statements I, II and IV

29. C: Which of the following describes the party being represented by another party in a representation relationship? A) Agent B) Third party C) Principal D) Customer
30. A: When are fiduciary duties owed by a real estate professional? A) As soon as they receive confidential information from a client B) As soon as they establish a representation relationship with a customer C) As soon as they enter into a written service agreement with a customer D) As soon as they are granted express authorities from a client
31. D: Which of the following categories of brokerage services involves numerous services that require the greatest level of discretion or judgement? A) Mere posting service B) Limited brokerage services C) Full brokerage services D) Property management services
32. A: Which of the following best describes statute law? A) An accumulation of laws enacted by various levels of government B) An accumulation of laws enacted by the courts C) A rigid code of rules enacted by the provincial government D) A rigid code of rules enacted by the federal government
33. B: Which of the following situations is an example of an injunction? A) The court forces a party to complete its contract with the another party B) The court prevents the party from selling the property to another party C) The court forces a landlord to pay the tenant damages for ending the lease without cause D) A tenant does basic repairs on a property and sues the landlord for reimburse- ment

34. A: Which of the following statements does NOT apply to RECA's position on the use of electronic agreements? A) It should be considered legal advice to real estate professionals B) Its use is subject to case law in this area

C) Its use is subject to judicial consideration of the legislation D) Those using this technology need to be monitor the legal situation

35. A: The Dower Act provides property rights to certain individuals. In which of the following situations does the Dower Act NOT apply? A) A married couple who are both titled as owners of the property where they reside B) The man bought the property before he married. He and his spouse now live on it, but the spouse is not titled C) An income property where one spouse has resided on the property during the time of the marriage D) A couple living on the property with only one on title, and both sign the mortgage refinancing application
36. C: If performance of a contract is impossible, what is the reason for the contract ending? A) Breach B) Agreement C) Frustration D) Performance
37. A: Which rights of ownership of land are included in the Bundle of Rights? A) Possess, use, enjoy and sell the land B) Possess, use, enjoy and develop the land C) Acquire, use, enjoy and sell the land D) Acquire, lease, mortgage and dispose of the land
38. C: Rodney has applied for a mortgage through Regional Mortgage Brokers Ltd. The mortgage associate there explains that the term of the mortgage is for 3 years and Rodney is in agreement. While signing the mortgage document with the lawyer, Rodney sees that the term is for 5 years. Rodney does not mention the misunderstanding and accepts the 5-year term. Based on an understanding of contracts, what type of mistake is this? A) Common mistake B) Mutual mistake C) Unilateral mistake D) Misrepresentation of fact
39. C: The assessment of property for taxation purposes is carried out under which provincial statute? A) The Property Assessment Act B) The Condominium Property Act

C) The Municipal Government Act D) The Real Estate Assessment Act

40. C: What is meant by the term 'real property'? A) Raw or otherwise unimproved land B) Raw land plus fixed or permanent improvements C) Tangible attributes of the land plus rights of ownership D) Attributes of the land and buildings situated on the land
41. B: Under the Torrens System, which principle ensures that the current Certificate of Title accurately shows the current facts about the property? A) The Curtain Principle B) The Mirror Principle C) The Insurance Principle D) All of the Principles apply
42. C: Which statement is correct if a property is held in joint tenancy? A) If 2 individuals own a property, they each have a 50 % interest in the property B) If 2 individuals own a property, 1 person may have a 60 % interest while the other has 40 % C) If 2 individuals own a property, they both have an equal interest in the property as a whole D) Ownership of a property in joint tenancy only applies to married couples
43. B: According to the Municipal Government Act, a municipality establishes by- laws that classify how land within its jurisdiction may be used. What are these classifications referred to as in the bylaws? A) Land use zones B) Land use districts C) Land use categories D) Land use developments
44. B: According to the Municipal Government Act, what is a 'mill rate'? A) The amount of assessed value paid by commercial mills B) The amount per thousand dollars of assessed value of property C) The percentage of property taxes in a particular municipality D) The percentage of property taxes as part of municipal revenues Next Question
45. A: What is an encroachment? A) An item that is built on an adjoining property B) A right acquired by one party to use the land of another C) A notice that someone is claiming an interest in the land D) All of these are encroachments

46. D: Which of the following is an example of an encumbrance? A) A mortgage registered for a loan against a property B) A caveat that details the nature of a limitation on a property

C) A lien that identifies a claim on a property for payment of a debt D) All are examples of an encumbrance

47. B: An owner of a property has diverted groundwater without having received au- thority from the Alberta Government. According to the Water Act, what requirement must be met for the individual to be able to divert water? A) A water permit is required B) A water licence is required C) A water easement is required D) A water agreement is required
48. C: What is the purpose of the Land Titles Assurance Fund? A) To protect lenders if the borrower defaults on the mortgage loan B) To protect borrowers if their mortgage is registered on the wrong title C) To provide owners compensation if they suffer a loss due to an error on title D) To provide owners compensation if their title is destroyed for any reason
49. C: Why should real estate professionals be aware of Alberta's Environmental Protection and Enhancement Act in terms of their practice? A) The statute is part of the growing interest in environmentally friendly practices and procedures B) The statute requires property owners to examine ways to conserve energy and recycle waste C) The basic audit level is becoming more prevalent in commercial and industrial transactions D)The consumer interest in environmentally-friendly residential properties has been increasing
50. B: On what basis does the right of rescission operate in regards to the purchase of a unit? A) The buyer's failure to take possession of the unit on the closing date B) The buyer's dissatisfaction with the condominium documents C) The buyer's dissatisfaction with the property inspection D) The buyer's failure to obtain adequate financing for the purchase
51. A: When owners rent or lease their units, which of the following may be required of the owners by the condominium corporation? Names of the tenants and the amount of the rent they will pay Address of service and a deposit equal to one month's rent Dates for the start and end of the

rental/lease agreement Permission from the condominium corporation to rent/lease the unit A) Statements I, II, and III B) Statements I, III, and IV

C) Statements II, III, and IV D) All the statements

52. D: Which of the following are NOT activities included in a Cash Flow Statement for a condominium corporation? A) Operating revenues and expenses B) Long-term investments that were sold C) Loans taken against the common property D) Contingent liabilities for financial exposures
53. D: Which of the following is the best definition for the term condominium? A) Living in common with others B) Being responsible with others C) Living in close proximity to others D) Ownership in common with others
54. B: Which statement best describes post-tension cables? A) A construction system that involves interconnected cables B) A construction method that reinforces concrete C) A construction method that reinforces posts with cables D) A construction system that puts posts under tension
55. C: In which of the following situations would a condominium corporation NOT need to pass a special resolution? A) To use Reserve Fund monies for improvements B) To make a change to the bylaws C) To levy a special assessment on all units D) To buy or sell components of the common property
56. B: How often must a condominium corporation hold an annual general meeting? A) Within 12 months of the last one B) Within 15 months of the last one C) Within 18 months of the last one D) Within 20 months of the last one
57. B: Which statement is correct regarding the number assigned to a Condominium Plan? A) Indicates the total number of units in the condominium B) Indicates the year the Plan was registered at Alberta Land Titles C) Is an arbitrary number assigned when the Plan is submitted D) Is a number assigned by the Alberta Land Surveyor who drew the Plan
58. D: The bylaws of the condominium corporation may be changed from time to time. Bylaw changes may be passed at which type of

meeting? A) Extraordinary meetings of the condominium corporation B) General meetings of the condominium corporation

C) Annual general meetings of the condominium corporation D) At all of these meetings bylaw changes may be passed

59. A: Under the legislation, the right of rescission is best described by which statement? A) The ability of purchasers to cancel their purchase contract with a developer B) The ability of purchasers to cancel their purchase contract with a reseller C) The ability of purchasers to cancel their purchase contract with any seller D) The ability of purchasers to cancel their purchase contract for any reason
60. C: The HiHo Condominium was established in 2003. Which statement is correct regarding how often a Reserve Fund Study must be completed? A) 2 years B) 3 years C) 5 years D) 10 years
61. B: Which formula correctly illustrates the relationship among the components of a Balance Sheet? A) Equity = Assets + Liabilities B) Assets = Liabilities + Equity C) Liabilities = Equity + Assets D) None of these are correct
62. A: Which of the following describes a condominium administrator? A) Court-appointed manager B) Board-hired manager C) Board-elected manager D) Auditor-appointed manager
63. A: Which of the following documents may be found online through SPIN? The meeting minutes The unit title and registered instruments The Condominium Additional Plan Sheet The Real Property Report A) Statements II and III B) Statements I and III

C) Statements II and IV D) All statements are correct

64. D: Which of the following is required to pass a special resolution? A) Support from a total of 50% of eligible voters with at least 2,500 of the unit factors B) Support from a total of 50% of eligible votes with at least 5,000 of the unit factors