RECA Exam Study Questions With Correct
Answers
1. Carl,a real estate professional,is registered with Prime Plus Real Estate Ltd.He
| | | | | | | | | | | | |
| has listed his brother's house for sale with the brokerage. A real estate
| | | | | | | | | | | |
| professional with another brokerage contacts Carl and asks to preview the
| | | | | | | | | |
| property as she has a potential buyer. What level of disclosure must Carl
| | | | | | | | | | | |
| provide?: Disclosure level 1 | | |
2. When evaluating an ethical dilemma, the first step is awareness. An individ- ual
| | | | | | | | | | | |
may become aware of an ethical dilemma through a variety of ways. Which one of
| | | | | | | | | | | | | | |
| the following is typically NOT one of the ways?: Others tell you that you have an
| | | | | | | | | | | | | | |
| ethical dilemma|
3. Which of the following statements is correct regarding the length of time
| | | | | | | | | | |
that real estate professionals are obligated to keep client information confi-
| | | | | | | | | | |
1 |/ |7
,dential?: It continues without a time limit after real estate services are no longer
| | | | | | | | | | | | | |
| provided
4. Which of the following describes what is meant by a lawful instruction?: Any
| | | | | | | | | | | |
instruction that is reasonable and ordinary under the circumstances
| | | | | | | | |
5. 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?: -
| | | | | | | | | | | | | | |
Express Authority
| |
6. Which of the following describes the party that exists outside of a represen-
| | | | | | | | | | | |
tation relationship?: Third Party
| | | |
7. Which of the following is NOT a type of authority an agent may hold?: Func-
| | | | | | | | | | | | | |
tional Authority
| |
8. Which of the following are the only entities authorized to trade in real
| | | | | | | | | | | |
estate?: Real Estate Brokerages
| | | |
9. Which of the following categories of brokerage services involves numerous
| | | | | | | | |
services that require the greatest level of discretion or judgement?: Property
| | | | | | | | | | |
| Management Services |
2 |/ |7
, 10. Which of the following does NOT apply to consideration?: Consideration
| | | | | | | | |
always involves money
| | |
11. What is the difference between a condition and a term in a contract?: Con-
| | | | | | | | | | | | |
ditions must be waived for the contract to proceed, while a contract can still proceed with
| | | | | | | | | | | | | | | |
| unmet terms|
12. Which of the following is NOT an essential element of a contract?: The
| | | | | | | | | | | |
contract must be in written form to be enforceable
| | | | | | | | |
13. 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
| | | | | | | | | | | |
3 |/ |7
Answers
1. Carl,a real estate professional,is registered with Prime Plus Real Estate Ltd.He
| | | | | | | | | | | | |
| has listed his brother's house for sale with the brokerage. A real estate
| | | | | | | | | | | |
| professional with another brokerage contacts Carl and asks to preview the
| | | | | | | | | |
| property as she has a potential buyer. What level of disclosure must Carl
| | | | | | | | | | | |
| provide?: Disclosure level 1 | | |
2. When evaluating an ethical dilemma, the first step is awareness. An individ- ual
| | | | | | | | | | | |
may become aware of an ethical dilemma through a variety of ways. Which one of
| | | | | | | | | | | | | | |
| the following is typically NOT one of the ways?: Others tell you that you have an
| | | | | | | | | | | | | | |
| ethical dilemma|
3. Which of the following statements is correct regarding the length of time
| | | | | | | | | | |
that real estate professionals are obligated to keep client information confi-
| | | | | | | | | | |
1 |/ |7
,dential?: It continues without a time limit after real estate services are no longer
| | | | | | | | | | | | | |
| provided
4. Which of the following describes what is meant by a lawful instruction?: Any
| | | | | | | | | | | |
instruction that is reasonable and ordinary under the circumstances
| | | | | | | | |
5. 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?: -
| | | | | | | | | | | | | | |
Express Authority
| |
6. Which of the following describes the party that exists outside of a represen-
| | | | | | | | | | | |
tation relationship?: Third Party
| | | |
7. Which of the following is NOT a type of authority an agent may hold?: Func-
| | | | | | | | | | | | | |
tional Authority
| |
8. Which of the following are the only entities authorized to trade in real
| | | | | | | | | | | |
estate?: Real Estate Brokerages
| | | |
9. Which of the following categories of brokerage services involves numerous
| | | | | | | | |
services that require the greatest level of discretion or judgement?: Property
| | | | | | | | | | |
| Management Services |
2 |/ |7
, 10. Which of the following does NOT apply to consideration?: Consideration
| | | | | | | | |
always involves money
| | |
11. What is the difference between a condition and a term in a contract?: Con-
| | | | | | | | | | | | |
ditions must be waived for the contract to proceed, while a contract can still proceed with
| | | | | | | | | | | | | | | |
| unmet terms|
12. Which of the following is NOT an essential element of a contract?: The
| | | | | | | | | | | |
contract must be in written form to be enforceable
| | | | | | | | |
13. 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
| | | | | | | | | | | |
3 |/ |7
