RECA UPDATED EXAMS TEST PAPER QUESTIONS
AND ANSWERS SURE A+
✔✔Statements I and IV - ✔✔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 - ✔✔If performance of a contract is impossible, what is the reason for the
contract ending?
✔✔A contract that was valid and has now ended - ✔✔What is meant by a discharged
contract?
✔✔Unilateral mistake - ✔✔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?
✔✔Owners may have unequal ownership interest in the property - ✔✔Which statement
is true when the ownership of a property is referred to as 'tenancy in common'?
✔✔Statements I, II, and III - ✔✔Which of the following statements defines the purpose
of unit factors?
, Sets unit responsibility for common area expenses
Defines the voting rights of the unit owner
Determines the monthly contribution for the unit
Sets the value of the unit for property tax purposes
✔✔Within 15 months of the last one - ✔✔How often must a condominium corporation
hold an annual general meeting?
✔✔Statements I, II, and III - ✔✔Which of the following statements are associated with
the Principle of Highest and Best Use?
Legal permissibility based on municipal land use classifications and bylaws
Physical potential of the land based on its size, shape, and topography
Financial feasibility and maximum productivity potential for development
Political possibility based on the ability to achieve development approvals
✔✔All Statements Apply - ✔✔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 - ✔✔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 - ✔✔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 - ✔✔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 - ✔✔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
AND ANSWERS SURE A+
✔✔Statements I and IV - ✔✔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 - ✔✔If performance of a contract is impossible, what is the reason for the
contract ending?
✔✔A contract that was valid and has now ended - ✔✔What is meant by a discharged
contract?
✔✔Unilateral mistake - ✔✔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?
✔✔Owners may have unequal ownership interest in the property - ✔✔Which statement
is true when the ownership of a property is referred to as 'tenancy in common'?
✔✔Statements I, II, and III - ✔✔Which of the following statements defines the purpose
of unit factors?
, Sets unit responsibility for common area expenses
Defines the voting rights of the unit owner
Determines the monthly contribution for the unit
Sets the value of the unit for property tax purposes
✔✔Within 15 months of the last one - ✔✔How often must a condominium corporation
hold an annual general meeting?
✔✔Statements I, II, and III - ✔✔Which of the following statements are associated with
the Principle of Highest and Best Use?
Legal permissibility based on municipal land use classifications and bylaws
Physical potential of the land based on its size, shape, and topography
Financial feasibility and maximum productivity potential for development
Political possibility based on the ability to achieve development approvals
✔✔All Statements Apply - ✔✔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 - ✔✔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 - ✔✔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 - ✔✔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 - ✔✔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
