RECA RESIDENTIAL EXAM UNIT 1-
w w w w
9 1000+ Q&A EXPERT VERIFIED WITH DETAILED
w w w w w w w
ANSWERS 2023/2024 GUARANTEED PASS
w w w
3wfundamentalwprincipleswofwfiduciarywduty.wAKAwthew3wprincipleswthatwgivewrisewtowfiduciarywduti
eswinwawrepresentationwrelationship:
TrustwandwConfidence,wBestwInterests,wLoyalty
8wGeneralwObligationswofwREPs
w
ExercisewCarewandwSkill,wActwHonestly,wNegotiatewFavourablewterms,wMaintainwConfidentiality,ww
DisclosewInformation,wActwinwPerson,wObeywLawfulwInstructions,wPerformwMandate
6wPointswofwFiduciarywDuties
ProvidewUtmostwLoyalty,wNotwmakewsecretwprofits,wHandlewConfidentwInformationwProperly,wToww
Account,wAvoidwconflictswofwinterest,wDisclosewconflictswofwinterest.
"TowAccount"wmeaning
Realwestatewprofessionalswmustwaccountwforwallwmoneywand/orwpropertywbelongingwtowthewclient.
Thiswdutywcompelswawrealwestatewprofessionalwtowsafeguardwallwmoney,wdocuments,wproperty,wan
dinformationwentrustedwtowthemwthatwrelatewtowthewclient'swtransaction.w"
arm'swlengthwtransaction"wmeaning
Inwrealwestate,wanwarm'swlengthwtransactionwiswwhenwthewbuyerwandwsellerweachwactwinwtheirwownwse
lf-
interestwtowtrywtowgetwthewbestwdealwtheywcan.
4wcommonwexampleswofwdealswthatwarewnotwarm'swlengthwtransactionswS
aleswbetweenwfriendsworwfamilywmembers
Saleswbetweenwanwemployerwandwhisworwherwemployeesw Sal
eswbetweenwawparentwcompanywandwonewofwitswsubsidiarieswS
aleswbetweenwawtrustwandwitswbeneficiaries
2woptionswifwREPwcannotwprovidewcompetentwservicewtowawclientw
BewSupervised,wRefer
TowdeterminewifwawREPwhaswmetwthewstandardwofwcarewinwawgivenwsituation,wanwobjectivewreviewwofw
allwfactswiswperformed.w3wmeasureswtowdeterminewifwthatwhaswbeenwmet.
ProfessionalwStandards,wProfessionalwNormswandwPractices,wExpertwTestimon
yw"ExpertwTestimony"wMeaning
,Otherwrealwestatewprofessionals,worwexperts,wmaywprovidewinformationwaswtowthewexpectationswofwa
wwreasonablewandwprudent wreal westatewprofessional wandwhowwtheywwouldwhavewconductedwthemselv
eswwinwsimilarwcircumstances.
9wpointswinw"MeetingwthewStandardwofwCare"
1.wKnowwthewTypewofwConsumerwRelationshipw2.wActwconsistentwwithwthewrelationshipwchosenw3.ww
KnowwthewBrokeragewServicew4.wKnowwthewbrokeragewPolicieswandwproceduresw5.wBewAwarewofw
MarketwandwPracticalwIssuesw6.wMakewReasonablewEffortswtowConfirmwinformationw7.wExercisewDu
ecarewwhenwpreparingwdocumentsw8.wSeekwAdvicewwhenwappropriatew9.wBewawLifelongwlearn
er
Whenwiswwrittenwdisclosurewneeded?
WheneverwawREPwreceivesworwiswaboutwtowreceivewconfidentialwinformation;wincludingwthewwconsu
mer'swrealwestatewneeds,wmotivation,worwfinancialwability.
4wthingswthatwmustwbewincludedwinwwrittenwdisclosure
1.wWhetherwthewREPwhaswenteredwintowawrepresentationwrelationshipwwithwanotherwpartywtowthewrea
lwwestatewtransactionw2.wThewservicewthewREPwwillwprovidewthewconsumerw3.wAnywconflictswofwinter
estwwthatwmaywexistwbetweenwthewconsumerwandwthewREPw4.wAnywadditionalwfactsworwinformationwt
hatwwmaywinfluencewthewconsumer'swdecisionwtowproceedwwithwthewrealwestatewrelationship.
WhichwguidewmustwREPswpracticingwresidentialwrealwestatewmustwREPswprovidewtowconsumerswforwr
elationshipwdisclosuresw(thewguidewincludeswallwinformationwREPswmustwincludewinwwrittenwdisclos
ureswunderwthewRules)
RECA'swConsumerwRelationshipwGuide
Forwneededwwhenwnon-
representationwrelationshipwiswselectedwbywconsumerw(thenwbecomingwawcustomer)
Customerwacknowledgementwform
Formwneededwwhenwrepresentationwrelationshipwiswchosenwbywconsumerw(thenwbecomingwawclient)w
WrittenwServicewAgreement
DoeswRECA'swconsumerwrelationshipswguide,wcustomerwAcknowledgementwformswandwwrittenwser
vicewagreementswcontainwmandatorywcontent?wCanwitwbewchanged?
Yes.wAlthoughwthesewdocumentswmaywbewchangedwatwthewrequestwofwawconsumerworwtailoredwtowthew
wneedswofwawbrokeragew(eg. wlogowadded,wbrokerwinformationwadded),wcontent,wmeaningwandwintent w
mustwnotwbewaltered.
RepresentationwrelationshipswarewNOTwestablishedwbywthewfollowingw4wactions
1.wREPwconveyingwdocumentsworwprovidingwgeneralwinformationwtowconsumersw2.wREPwusingwwcer
tainwtermswtowreferwtowconsumersw(egwclientwcustomer)w3.wConsumerswusingwcertainwtermswtowrefer
,towREPw(eg.wRealwestatewagent,wleasewagent,wbuyerswagent)w4.Consumerswpayingwremunerationw(iew
commission,wfees)wtowthewREP'swbrokerage
5DswofwRolewClaritywandwConsistencyw(5wwords)
1.wDiscussw2.wDeterminew3.wDocumentw4.wDisclosew5.wDo
Longerwexplanationswofwthew5DswofwRolewClaritywandwConsistencyw(sentences)
1.wDiscusswthewRealwestatewrelationshipw2.wDeterminewyourwrepresentativewcapacityw3.wDocumentw
yourwrepresentativewcapacitywinwwritingw4.wDisclosewyourwrepresentativewcapacityw(ie.wseller'swagen
t,
buyer'swagent,wlandlord'swagent,worwtenant'swagent)w5.wDowactionswwithwyourwrepresentativewcapacity
consistentwwithwyourwestablishedwrelationshi
pw6wBenefitswofwRolewClaritywandwConsistenc
y
1.wMeetswRegulatorywRequirementsw2.wEnhanceswprofessionalismw3.wPreventswUnintendedwwrelatio
nshipsw4.wClarifieswresponsibilitieswtowconsumersw5.wClarifieswserviceswtowconsumersw6.wwReduceswd
isputes
TrueworwFalsew-
MakingwreferralswiswawfiduciarywdutywthatwREPswowewtowclientswFalse
w
TrueworwFalsew-
wthewstandardwofwcarewforwawREPwinwawparticularwsetwofwcircumstances wiswdeterminedwsubjectively
False
"subjectively"wmeaning
Inwawwaywthatwiswbasedwonwpersonalwfeelings,wtastes,worwopinions.w"Obj
ectively"wmeaning
inwawwaywthatwiswnotwinfluencedwbywpersonalwfeelingsworwopinions.
DefinedwinwthewRules,wwhatwdoeswconfidentialwinformationwincludew(3wthingswinwspecific)
Anywinformationwconcerningwthewclientwincludingwthewclient'swfinancialworwpersonalwsituation,wtheww
client'swrealwestate,wandwtransactionswinvolvingwthewclient.
Whatwdoeswcommercialwactivitywreferwto?
Anywtransaction,wact,worwconductwinvolvingwthewexchangewofwgoodswand/orwservices
.wIswBuying/selling/leasingwconsideredwcommercialwactivity?
Yes,wthewpurchase,wsale,worwleasingwofwrealwestatewiswconsideredwawcommercialwactivity
InwAlbertawthewprotectionwofwindividuals'wpersonalwinformationwduringwrealwestatewtransactionswiswre
gulatedwbywwhichwprivacywlegislationw(x2)
, PIPEDAw(ThewPersonalwInformationwProtectionwandwElectronicwDocumentwAct)wandwPIPAw(ThewwP
ersonalwInformationwProtectionwAct)
IswPIPEDAwawprovincialworwawFederalwlegislation?wF
ederal
DoeswPIPEDAwlegislationwapplywtowAlberta?
YeswandwNo,wsincewAlbertawhaswPIPAw(whichwiswsubstantiallywsimilarwtowPIPEDAwsowaccepted),witw
wdoeswnotwallwtowallworganizationswinvolvedwinwcommercial wactivities.
Whichw2wareaswdoeswPIPEDAwlegislationwcontinuewtowapplywtowinwAlbertaw(andwprovinceswthatwhav
ewsetwupwlegislationwlikewPIPA)
PIPEDAwcontinueswtowapplywtow1.wFederallywregulatedwbusinessesw(suchwaswbanks,wairlines,wandwwte
lecommunicationwcompanies.w2.wOrganizationswconductingwbusinessw(involvingwpersonwwinformati
on)wthatwcrosseswprovincialworwnationalwborders
10wPrivacywPrincipleswinwPractice
1.wAccountabilityw2.wIdentifyingwPurposesw3.wConsentw4.wLimitingwCollectionw5.wLimitingwUse,w
Disclosure,wandwRetentionw6.wAccuracyw7.wSafeguardsw8.wOpennessw9.wIndividualwAccessw10.wwCha
llengingwCompliance
3wtypeswofwconsentw(recognizedwbywPrivacywlegislation)wExp
ress,wimpliedworwopt-out
CanwRealwestatewassistantswhiredwbywthewbrokeragewdowactivitieswinvolvingwthewpublic?
Yesw(butwnotwtaskswthatwwouldwrequirewbeingwauthorizedwtowtradewinwrealwestate,wmainlywtowhelpwwit
hwwadministrativewfunctionsworwgeneralwofficewdutieswsupportingwthewday-to-
daywactivities.wInwsomewwinstances,winvolvewthewpublic
IfwawREPwhireswanwassistantw(firstwmustwhavewbroker'swconsent)wcanwthewtaskswinvolvewthewpublic?w
No,wtheywcannotwinvolvewthewpublic.wOtherwisewtheywneedwtowbewemployedwbywthewbrokerage
3wThingswthatwneedwtowbewimplementedwifwusingwawvirtualwassistantwinworderwtowprotectwclientwinfor
mation
1.wConfirmwthewvirtualwassistantwprivacywpolicieswandwprocedureswarewcomparablewtowthatwofwthe
brokeragew2.wNotifywclientswwhosewpersonalwinformationwiswbeingwcollectedworwtransferredwwhe
n
notification wwaswnotwincludedwinwthewreal westatewrelationshipwform.wNotificationwshouldwbewinwwwrit
ingwandwdocumentswforwbrokeragewrecordwkeeping.w3.wAdvisewclientswwhosewpersonalwwinformatio
nwiswcollectedworwtransferred,whowwthewrealwestatewbrokerage'swprivacywpolicieswandwwprocedureswm
aywbewobtainedwinwwriting.wAlsowletwthewclientwknowwwhowcanwanswerwquestionswaboutwwthewcollecti
on,wuse,wandwdisclosurewofwtheirwpersonalwinformationwwhenwhandledwbywthewvirtualwwassistant.
w w w w
9 1000+ Q&A EXPERT VERIFIED WITH DETAILED
w w w w w w w
ANSWERS 2023/2024 GUARANTEED PASS
w w w
3wfundamentalwprincipleswofwfiduciarywduty.wAKAwthew3wprincipleswthatwgivewrisewtowfiduciarywduti
eswinwawrepresentationwrelationship:
TrustwandwConfidence,wBestwInterests,wLoyalty
8wGeneralwObligationswofwREPs
w
ExercisewCarewandwSkill,wActwHonestly,wNegotiatewFavourablewterms,wMaintainwConfidentiality,ww
DisclosewInformation,wActwinwPerson,wObeywLawfulwInstructions,wPerformwMandate
6wPointswofwFiduciarywDuties
ProvidewUtmostwLoyalty,wNotwmakewsecretwprofits,wHandlewConfidentwInformationwProperly,wToww
Account,wAvoidwconflictswofwinterest,wDisclosewconflictswofwinterest.
"TowAccount"wmeaning
Realwestatewprofessionalswmustwaccountwforwallwmoneywand/orwpropertywbelongingwtowthewclient.
Thiswdutywcompelswawrealwestatewprofessionalwtowsafeguardwallwmoney,wdocuments,wproperty,wan
dinformationwentrustedwtowthemwthatwrelatewtowthewclient'swtransaction.w"
arm'swlengthwtransaction"wmeaning
Inwrealwestate,wanwarm'swlengthwtransactionwiswwhenwthewbuyerwandwsellerweachwactwinwtheirwownwse
lf-
interestwtowtrywtowgetwthewbestwdealwtheywcan.
4wcommonwexampleswofwdealswthatwarewnotwarm'swlengthwtransactionswS
aleswbetweenwfriendsworwfamilywmembers
Saleswbetweenwanwemployerwandwhisworwherwemployeesw Sal
eswbetweenwawparentwcompanywandwonewofwitswsubsidiarieswS
aleswbetweenwawtrustwandwitswbeneficiaries
2woptionswifwREPwcannotwprovidewcompetentwservicewtowawclientw
BewSupervised,wRefer
TowdeterminewifwawREPwhaswmetwthewstandardwofwcarewinwawgivenwsituation,wanwobjectivewreviewwofw
allwfactswiswperformed.w3wmeasureswtowdeterminewifwthatwhaswbeenwmet.
ProfessionalwStandards,wProfessionalwNormswandwPractices,wExpertwTestimon
yw"ExpertwTestimony"wMeaning
,Otherwrealwestatewprofessionals,worwexperts,wmaywprovidewinformationwaswtowthewexpectationswofwa
wwreasonablewandwprudent wreal westatewprofessional wandwhowwtheywwouldwhavewconductedwthemselv
eswwinwsimilarwcircumstances.
9wpointswinw"MeetingwthewStandardwofwCare"
1.wKnowwthewTypewofwConsumerwRelationshipw2.wActwconsistentwwithwthewrelationshipwchosenw3.ww
KnowwthewBrokeragewServicew4.wKnowwthewbrokeragewPolicieswandwproceduresw5.wBewAwarewofw
MarketwandwPracticalwIssuesw6.wMakewReasonablewEffortswtowConfirmwinformationw7.wExercisewDu
ecarewwhenwpreparingwdocumentsw8.wSeekwAdvicewwhenwappropriatew9.wBewawLifelongwlearn
er
Whenwiswwrittenwdisclosurewneeded?
WheneverwawREPwreceivesworwiswaboutwtowreceivewconfidentialwinformation;wincludingwthewwconsu
mer'swrealwestatewneeds,wmotivation,worwfinancialwability.
4wthingswthatwmustwbewincludedwinwwrittenwdisclosure
1.wWhetherwthewREPwhaswenteredwintowawrepresentationwrelationshipwwithwanotherwpartywtowthewrea
lwwestatewtransactionw2.wThewservicewthewREPwwillwprovidewthewconsumerw3.wAnywconflictswofwinter
estwwthatwmaywexistwbetweenwthewconsumerwandwthewREPw4.wAnywadditionalwfactsworwinformationwt
hatwwmaywinfluencewthewconsumer'swdecisionwtowproceedwwithwthewrealwestatewrelationship.
WhichwguidewmustwREPswpracticingwresidentialwrealwestatewmustwREPswprovidewtowconsumerswforwr
elationshipwdisclosuresw(thewguidewincludeswallwinformationwREPswmustwincludewinwwrittenwdisclos
ureswunderwthewRules)
RECA'swConsumerwRelationshipwGuide
Forwneededwwhenwnon-
representationwrelationshipwiswselectedwbywconsumerw(thenwbecomingwawcustomer)
Customerwacknowledgementwform
Formwneededwwhenwrepresentationwrelationshipwiswchosenwbywconsumerw(thenwbecomingwawclient)w
WrittenwServicewAgreement
DoeswRECA'swconsumerwrelationshipswguide,wcustomerwAcknowledgementwformswandwwrittenwser
vicewagreementswcontainwmandatorywcontent?wCanwitwbewchanged?
Yes.wAlthoughwthesewdocumentswmaywbewchangedwatwthewrequestwofwawconsumerworwtailoredwtowthew
wneedswofwawbrokeragew(eg. wlogowadded,wbrokerwinformationwadded),wcontent,wmeaningwandwintent w
mustwnotwbewaltered.
RepresentationwrelationshipswarewNOTwestablishedwbywthewfollowingw4wactions
1.wREPwconveyingwdocumentsworwprovidingwgeneralwinformationwtowconsumersw2.wREPwusingwwcer
tainwtermswtowreferwtowconsumersw(egwclientwcustomer)w3.wConsumerswusingwcertainwtermswtowrefer
,towREPw(eg.wRealwestatewagent,wleasewagent,wbuyerswagent)w4.Consumerswpayingwremunerationw(iew
commission,wfees)wtowthewREP'swbrokerage
5DswofwRolewClaritywandwConsistencyw(5wwords)
1.wDiscussw2.wDeterminew3.wDocumentw4.wDisclosew5.wDo
Longerwexplanationswofwthew5DswofwRolewClaritywandwConsistencyw(sentences)
1.wDiscusswthewRealwestatewrelationshipw2.wDeterminewyourwrepresentativewcapacityw3.wDocumentw
yourwrepresentativewcapacitywinwwritingw4.wDisclosewyourwrepresentativewcapacityw(ie.wseller'swagen
t,
buyer'swagent,wlandlord'swagent,worwtenant'swagent)w5.wDowactionswwithwyourwrepresentativewcapacity
consistentwwithwyourwestablishedwrelationshi
pw6wBenefitswofwRolewClaritywandwConsistenc
y
1.wMeetswRegulatorywRequirementsw2.wEnhanceswprofessionalismw3.wPreventswUnintendedwwrelatio
nshipsw4.wClarifieswresponsibilitieswtowconsumersw5.wClarifieswserviceswtowconsumersw6.wwReduceswd
isputes
TrueworwFalsew-
MakingwreferralswiswawfiduciarywdutywthatwREPswowewtowclientswFalse
w
TrueworwFalsew-
wthewstandardwofwcarewforwawREPwinwawparticularwsetwofwcircumstances wiswdeterminedwsubjectively
False
"subjectively"wmeaning
Inwawwaywthatwiswbasedwonwpersonalwfeelings,wtastes,worwopinions.w"Obj
ectively"wmeaning
inwawwaywthatwiswnotwinfluencedwbywpersonalwfeelingsworwopinions.
DefinedwinwthewRules,wwhatwdoeswconfidentialwinformationwincludew(3wthingswinwspecific)
Anywinformationwconcerningwthewclientwincludingwthewclient'swfinancialworwpersonalwsituation,wtheww
client'swrealwestate,wandwtransactionswinvolvingwthewclient.
Whatwdoeswcommercialwactivitywreferwto?
Anywtransaction,wact,worwconductwinvolvingwthewexchangewofwgoodswand/orwservices
.wIswBuying/selling/leasingwconsideredwcommercialwactivity?
Yes,wthewpurchase,wsale,worwleasingwofwrealwestatewiswconsideredwawcommercialwactivity
InwAlbertawthewprotectionwofwindividuals'wpersonalwinformationwduringwrealwestatewtransactionswiswre
gulatedwbywwhichwprivacywlegislationw(x2)
, PIPEDAw(ThewPersonalwInformationwProtectionwandwElectronicwDocumentwAct)wandwPIPAw(ThewwP
ersonalwInformationwProtectionwAct)
IswPIPEDAwawprovincialworwawFederalwlegislation?wF
ederal
DoeswPIPEDAwlegislationwapplywtowAlberta?
YeswandwNo,wsincewAlbertawhaswPIPAw(whichwiswsubstantiallywsimilarwtowPIPEDAwsowaccepted),witw
wdoeswnotwallwtowallworganizationswinvolvedwinwcommercial wactivities.
Whichw2wareaswdoeswPIPEDAwlegislationwcontinuewtowapplywtowinwAlbertaw(andwprovinceswthatwhav
ewsetwupwlegislationwlikewPIPA)
PIPEDAwcontinueswtowapplywtow1.wFederallywregulatedwbusinessesw(suchwaswbanks,wairlines,wandwwte
lecommunicationwcompanies.w2.wOrganizationswconductingwbusinessw(involvingwpersonwwinformati
on)wthatwcrosseswprovincialworwnationalwborders
10wPrivacywPrincipleswinwPractice
1.wAccountabilityw2.wIdentifyingwPurposesw3.wConsentw4.wLimitingwCollectionw5.wLimitingwUse,w
Disclosure,wandwRetentionw6.wAccuracyw7.wSafeguardsw8.wOpennessw9.wIndividualwAccessw10.wwCha
llengingwCompliance
3wtypeswofwconsentw(recognizedwbywPrivacywlegislation)wExp
ress,wimpliedworwopt-out
CanwRealwestatewassistantswhiredwbywthewbrokeragewdowactivitieswinvolvingwthewpublic?
Yesw(butwnotwtaskswthatwwouldwrequirewbeingwauthorizedwtowtradewinwrealwestate,wmainlywtowhelpwwit
hwwadministrativewfunctionsworwgeneralwofficewdutieswsupportingwthewday-to-
daywactivities.wInwsomewwinstances,winvolvewthewpublic
IfwawREPwhireswanwassistantw(firstwmustwhavewbroker'swconsent)wcanwthewtaskswinvolvewthewpublic?w
No,wtheywcannotwinvolvewthewpublic.wOtherwisewtheywneedwtowbewemployedwbywthewbrokerage
3wThingswthatwneedwtowbewimplementedwifwusingwawvirtualwassistantwinworderwtowprotectwclientwinfor
mation
1.wConfirmwthewvirtualwassistantwprivacywpolicieswandwprocedureswarewcomparablewtowthatwofwthe
brokeragew2.wNotifywclientswwhosewpersonalwinformationwiswbeingwcollectedworwtransferredwwhe
n
notification wwaswnotwincludedwinwthewreal westatewrelationshipwform.wNotificationwshouldwbewinwwwrit
ingwandwdocumentswforwbrokeragewrecordwkeeping.w3.wAdvisewclientswwhosewpersonalwwinformatio
nwiswcollectedworwtransferred,whowwthewrealwestatewbrokerage'swprivacywpolicieswandwwprocedureswm
aywbewobtainedwinwwriting.wAlsowletwthewclientwknowwwhowcanwanswerwquestionswaboutwwthewcollecti
on,wuse,wandwdisclosurewofwtheirwpersonalwinformationwwhenwhandledwbywthewvirtualwwassistant.
