RECA Residential Exam Units and Key
Concepts Exam Questions with 100%
Verified Answers
3 fundamental principles of fiduciary duty - ✔✔Trust and Confidence, Best
Interests, Loyalty
8 General Obligations of REPs - ✔✔Exercise Care and Skill, Act Honestly,
Negotiate Favourable terms, Maintain Confidentiality, Disclose Information, Act
in Person, Obey Lawful Instructions, Perform Mandate
6 Points of Fiduciary Duties - ✔✔Provide Utmost Loyalty, Not make secret
profits, Handle Confident Information Properly, To Account, Avoid conflicts of
interest, Disclose conflicts of interest.
"To Account" meaning - ✔✔Real estate professionals must account for all
money and/or property belonging to the client.
"arm's length transaction" meaning - ✔✔In real estate, an arm's length
transaction is when the buyer and seller each act in their own self-interest to try
to get the best deal they can.
4 common examples of deals that are not arm's length transactions - ✔✔Sales
between friends or family members, Sales between an employer and his or her
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,employees, Sales between a parent company and one of its subsidiaries, Sales
between a trust and its beneficiaries.
2 options if REP cannot provide competent service to a client - ✔✔Be
Supervised, Refer
3 measures to determine if REP has met the standard of care - ✔✔Professional
Standards, Professional Norms and Practices, Expert Testimony
"Expert Testimony" Meaning - ✔✔Other real estate professionals, or experts,
may provide information as to the expectations of a reasonable and prudent
real estate professional.
9 points in "Meeting the Standard of Care" - ✔✔1. Know the Type of Consumer
Relationship 2. Act consistent with the relationship chosen 3. Know the
Brokerage Service 4. Know the brokerage Policies and procedures 5. Be Aware
of Market and Practical Issues 6. Make Reasonable Efforts to Confirm
information 7. Exercise Due care when preparing documents 8. Seek Advice
when appropriate 9. Be a Lifelong learner
When is written disclosure needed? - ✔✔Whenever a REP receives or is about
to receive confidential information.
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,4 things that must be included in written disclosure - ✔✔1. Whether the REP
has entered into a representation relationship with another party 2. The service
the REP will provide the consumer 3. Any conflicts of interest that may exist 4.
Any additional facts or information that may influence the consumer's decision.
RECA's Consumer Relationship Guide - ✔✔Guide that includes all information
REPs must include in written disclosures under the Rules.
Customer acknowledgement form - ✔✔Form needed when representation
relationship is chosen by consumer.
Written Service Agreement - ✔✔Form needed when representation relationship
is chosen by consumer.
Do RECA's consumer relationships guide, customer Acknowledgement forms
and written service agreements contain mandatory content? - ✔✔Yes, but
content, meaning and intent must not be altered.
Representation relationships are NOT established by the following 4 actions -
✔✔1. REP conveying documents or providing general information 2. REP using
certain terms to refer to consumers 3. Consumers using certain terms to refer to
REP 4. Consumers paying remuneration to the REP's brokerage.
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, 5Ds of Role Clarity and Consistency - ✔✔1. Discuss 2. Determine 3. Document 4.
Disclose 5. Do
6 Benefits of Role Clarity and Consistency - ✔✔1. Meets Regulatory
Requirements 2. Enhances professionalism 3. Prevents Unintended relationships
4. Clarifies responsibilities to consumers 5. Clarifies services to consumers 6.
Reduces disputes
True or False - Making referrals is a fiduciary duty that REPs owe to clients -
✔✔False
True or False - the standard of care for a REP in a particular set of circumstances
is determined subjectively - ✔✔False
"subjectively" meaning - ✔✔In a way that is based on personal feelings, tastes,
or opinions.
"Objectively" meaning - ✔✔In a way that is not influenced by personal feelings
or opinions.
What does confidential information include? - ✔✔Any information concerning
the client including the client's financial or personal situation, the client's real
estate, and transactions involving the client.
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Concepts Exam Questions with 100%
Verified Answers
3 fundamental principles of fiduciary duty - ✔✔Trust and Confidence, Best
Interests, Loyalty
8 General Obligations of REPs - ✔✔Exercise Care and Skill, Act Honestly,
Negotiate Favourable terms, Maintain Confidentiality, Disclose Information, Act
in Person, Obey Lawful Instructions, Perform Mandate
6 Points of Fiduciary Duties - ✔✔Provide Utmost Loyalty, Not make secret
profits, Handle Confident Information Properly, To Account, Avoid conflicts of
interest, Disclose conflicts of interest.
"To Account" meaning - ✔✔Real estate professionals must account for all
money and/or property belonging to the client.
"arm's length transaction" meaning - ✔✔In real estate, an arm's length
transaction is when the buyer and seller each act in their own self-interest to try
to get the best deal they can.
4 common examples of deals that are not arm's length transactions - ✔✔Sales
between friends or family members, Sales between an employer and his or her
1|Page
©KERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.
,employees, Sales between a parent company and one of its subsidiaries, Sales
between a trust and its beneficiaries.
2 options if REP cannot provide competent service to a client - ✔✔Be
Supervised, Refer
3 measures to determine if REP has met the standard of care - ✔✔Professional
Standards, Professional Norms and Practices, Expert Testimony
"Expert Testimony" Meaning - ✔✔Other real estate professionals, or experts,
may provide information as to the expectations of a reasonable and prudent
real estate professional.
9 points in "Meeting the Standard of Care" - ✔✔1. Know the Type of Consumer
Relationship 2. Act consistent with the relationship chosen 3. Know the
Brokerage Service 4. Know the brokerage Policies and procedures 5. Be Aware
of Market and Practical Issues 6. Make Reasonable Efforts to Confirm
information 7. Exercise Due care when preparing documents 8. Seek Advice
when appropriate 9. Be a Lifelong learner
When is written disclosure needed? - ✔✔Whenever a REP receives or is about
to receive confidential information.
2|Page
©KERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.
,4 things that must be included in written disclosure - ✔✔1. Whether the REP
has entered into a representation relationship with another party 2. The service
the REP will provide the consumer 3. Any conflicts of interest that may exist 4.
Any additional facts or information that may influence the consumer's decision.
RECA's Consumer Relationship Guide - ✔✔Guide that includes all information
REPs must include in written disclosures under the Rules.
Customer acknowledgement form - ✔✔Form needed when representation
relationship is chosen by consumer.
Written Service Agreement - ✔✔Form needed when representation relationship
is chosen by consumer.
Do RECA's consumer relationships guide, customer Acknowledgement forms
and written service agreements contain mandatory content? - ✔✔Yes, but
content, meaning and intent must not be altered.
Representation relationships are NOT established by the following 4 actions -
✔✔1. REP conveying documents or providing general information 2. REP using
certain terms to refer to consumers 3. Consumers using certain terms to refer to
REP 4. Consumers paying remuneration to the REP's brokerage.
3|Page
©KERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.
, 5Ds of Role Clarity and Consistency - ✔✔1. Discuss 2. Determine 3. Document 4.
Disclose 5. Do
6 Benefits of Role Clarity and Consistency - ✔✔1. Meets Regulatory
Requirements 2. Enhances professionalism 3. Prevents Unintended relationships
4. Clarifies responsibilities to consumers 5. Clarifies services to consumers 6.
Reduces disputes
True or False - Making referrals is a fiduciary duty that REPs owe to clients -
✔✔False
True or False - the standard of care for a REP in a particular set of circumstances
is determined subjectively - ✔✔False
"subjectively" meaning - ✔✔In a way that is based on personal feelings, tastes,
or opinions.
"Objectively" meaning - ✔✔In a way that is not influenced by personal feelings
or opinions.
What does confidential information include? - ✔✔Any information concerning
the client including the client's financial or personal situation, the client's real
estate, and transactions involving the client.
4|Page
©KERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.
