RECA EXAM STUDY GUIDE QUESTIONS
AND ANSWERS
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? -Answer- Disclosure level 1
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 contract. If they
challenge the contract, what term describes the possible result? -Answer- The contract
may be voidable
Which of the following is NOT characteristic of value in relation to a commodity? -
Answer- Pricing
Advisory Note -Answer- Which of the following Professional Conduct Review outcomes
is issued as a practice guideline for a technical breach of the legislation?
B) Statements II, III and IV -Answer- Which of the following statements is correct
regarding the Real Estate Act Rules?
The Rules may only be amended by the provincial legislature
RECA posts the most current version of the Rules on its website
The Rules refer to the standards of practice for industry professionals
When contemplating amendments to the Rules, RECA consults with industry
professionals and stakeholders
Social Reaction -Answer- Which of the following is NOT a type of reaction associated
with conflicts or disputes?
Personal Information Protection Act -Answer- Which of the following is the provincial
privacy legislation in Alberta?
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?
AND ANSWERS
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? -Answer- Disclosure level 1
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 contract. If they
challenge the contract, what term describes the possible result? -Answer- The contract
may be voidable
Which of the following is NOT characteristic of value in relation to a commodity? -
Answer- Pricing
Advisory Note -Answer- Which of the following Professional Conduct Review outcomes
is issued as a practice guideline for a technical breach of the legislation?
B) Statements II, III and IV -Answer- Which of the following statements is correct
regarding the Real Estate Act Rules?
The Rules may only be amended by the provincial legislature
RECA posts the most current version of the Rules on its website
The Rules refer to the standards of practice for industry professionals
When contemplating amendments to the Rules, RECA consults with industry
professionals and stakeholders
Social Reaction -Answer- Which of the following is NOT a type of reaction associated
with conflicts or disputes?
Personal Information Protection Act -Answer- Which of the following is the provincial
privacy legislation in Alberta?
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?
