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RECA EXAMINATION TEST 2026 QUESTIONS
WITH ANSWERS GRADED A+
◉ When evaluating an ethical dilemma, the first step is awareness. An individual may become aware of an ethical dilemma through a variety of ways. Which one of the following is typically NOT one of the ways? Answer: Others tell you that you have an ethical dilemma ◉ Which of the following statements is correct regarding the length of time that real estate professionals are obligated to keep client information confidential? Answer: It continues without a time limit after real estate services are no longer provided ◉ Which of the following describes what is meant by a lawful instruction? Answer: Any instruction that is reasonable and ordinary under the circumstances ◉ Which of the following types of authority involve describing (orally or in writing) the actions that may be taken by an agent on behalf of a principal? Answer: Express Authority ◉ Which of the following describes the party that exists outside of a representation relationship? Answer: Third Party
◉ Which of the following is NOT a type of authority an agent may hold? Answer: Functional Authority ◉ Which of the following are the only entities authorized to trade in real estate? Answer: Real Estate Brokerages ◉ Which of the following categories of brokerage services involves numerous services that require the greatest level of discretion or judgement? Answer: Property Management Services ◉ Which of the following does NOT apply to consideration? Answer: Consideration always involves money ◉ What is the difference between a condition and a term in a contract? Answer: Conditions must be waived for the contract to proceed, while a contract can still proceed with unmet terms ◉ Which of the following is NOT an essential element of a contract? Answer: The contract must be in written form to be enforceable ◉ The Ogami's have just completed their first English language course. They want to start a family business and take out a mortgage on their small townhouse to get funds for the business. However the business fails and they must repay the mortgage. Since the Ogami's struggle with English, they did not understand the mortgage
◉ Authority, responsibility and accountability Answer: In terms of the brokerage, what are the 3 components of leadership that relate to the broker? ◉ It should state that the consumer received and understands the written disclosure made by a real estate professional Answer: Which of the following best describes a written acknowledgement? ◉ Customary authority Answer: Which of the following types of authority allow an agent to act according to the usual ways of performing an action as established by the profession? ◉ Only some general obligations Answer: Which of the following responsibilities do real estate professionals owe customers? ◉ Statements I and IV Answer: If a real estate professional cannot provide competent service to a client, which of the following statements describe actions that the real estate professional should take? The real estate professional may refer the client to another real estate professional who specializes in that area of practice or geographic region
The real estate professional may continue to represent the client in a trade or potential trade and provide services to the best of their ability The real estate professional may terminate the representation relationship and refer the client to another real estate professional at a different brokerage The real estate professional may work under the supervision of another real estate professional at the same brokerage who possesses the relevant experience ◉ Frustration Answer: If performance of a contract is impossible, what is the reason for the contract ending? ◉ A contract that was valid and has now ended Answer: What is meant by a discharged contract? ◉ Unilateral mistake Answer: 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?
◉ All Statements Apply Answer: Why is the value of a property based on a property valuation often different from that of a property assessment? Assessments are based on sales as far back as a year ago Property valuations rely on the most recent sales Assessments are done for taxation as opposed to a sale Assessments use a different process referred to as mass appraisal ◉ I, II, III Answer: Which of the following indicators are used to calculate the Gross Domestic Product (GDP)? Imports Consumer spending Business spending Net income from foreign residents ◉ Disclosure level 3 Answer: Stan, a real estate professional registered with McAgent Real Estate Brokerage 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?
◉ Disclosure Level 2 Answer: 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? ◉ I, II, & III Answer: 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 ◉ B) It occurs when either the principal or agent fails to fulfil their responsibilities to the other party who terminates the representation relationship as a result Answer: Which of the following describes a lawful revocation? ◉ Statements I, II, and IV Answer: Which of the following statements is a benefit of designated agency? It is consistent with consumer expectations The brokerage can represent more consumers It allows the broker to advocate for clients to the trade
◉ An increase in the quantity supplied Answer: Which of the following will occur to the supply of a good when there is a change in quantity supplied due to a price increase? ◉ The Rules Answer: Which of the following may RECA amend from time to time? ◉ To protect real estate professionals when they make a mistake regarding their business activities Answer: What statement best describes why real estate professionals have errors and omissions insurance? ◉ As negotiators Answer: Brokers who use the VBRP typically have experience in which of the following roles? ◉ Both clients provide their informed consent Answer: Transaction brokerage may only proceed if which of the following occurs? ◉ Conditions precedent Answer: Which of the following are the types of conditions used in Alberta for real estate purchase contracts? ◉ Quantum meruit, specific performance, injunction Answer: What are some of the remedies for breach of contract?
◉ The land use conforms with the permitted use for that classification Answer: Under Land Use Bylaws, what is meant by a 'permitted use'? ◉ The Mirror Principle Answer: Under the Torrens System, which principle ensures that the current Certificate of Title accurately shows the current facts about the property? ◉ Principle of Surplus Productivity Answer: Which Principle of Value is represented by the following formula: Net income - operation expenses ◉ Statements II, III and IV Answer: What are the objectives of RECA's Professional Conduct Review procedures? To sanction industry professionals To gather all the relevant information To treat parties fairly and courteously To gather the information efficiently ◉ Personal trades involving real estate professionals Answer: Which of the following activities is excluded from coverage under the REIX policy?
the following statements is correct regarding written service agreements? ◉ Statements III and IV Answer: 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 ◉ Statements II and IV Answer: Of the following, what must a transaction facilitator disclose to the clients to the trade? To the buyer, the seller's motivation for offering the property for sale To the buyer, all known material latent defects affecting the property To the seller, the amount the buyer is willing to pay for the property To the seller, the facts as to the buyer's ability to purchase the property ◉ One real estate professional represents current clients with opposing interests Answer: Which of the following gives rise to a conflict of interest in brokerages that practice agency under the common law or designated agency?
◉ Possess, use, enjoy and sell the land Answer: Which rights of ownership of land are included in the Bundle of Rights? ◉ Tangible attributes of the land plus rights of ownership Answer: What is meant by the term 'real property'? ◉ 2 years Answer: Which of the following statements is correct regarding how soon a Reserve Fund Study must be completed for a new condominium? ◉ The guideline for selecting appropriate comparable properties Answer: Which of the following statements best describes what is being referred by: "The basic test is whether or not the comparable could be equivalent to the subject property in the mind of the typical buyer, subject to some adjustments?" ◉ Admissions made by real estate professionals Answer: Which of the following is NOT considered a frequent cause of conflicts and disputes? ◉ Errors, omissions and negligent acts Answer: REIX covers which of the following liabilities?
◉ The Municipal Government Act Answer: The assessment of property for taxation purposes is carried out under which provincial statute? ◉ Balance Answer: Which of the following is NOT a stage in the life cycle of an area? ◉
