RECA FUNDAMENTALS EXAM
QUESTIONS AND ANSWERS 100%
ACCURATE
Which of the following is NOT a RECA educational resource for industry professionals?
- ANSWER-Spatial Information System (Spin 2)
Which entity has the authority to amend the Real Estate Act - ANSWER-Provincial
Legislature
Which of the following measures the change in a cost of a fixed basket of goods and
services purchased by families over a period of time - ANSWER-Consumer Price Index
(CPI)
Which of the following will occur to the supply of a good when there is a change in
quantity supplied due to a price increase? - ANSWER-an increase in quantity supplied
Microeconics - ANSWER-studies the basic theories of supply and demand as it relates
to individuals, households and firms
Resource Markets - ANSWER-facilitate the exchange of factors of production
What causes the quantity demanded to shift? - ANSWER-change in tastes,
expectations, and number of consumers
benefits of economic growth - ANSWER-depletion of natural resources
Real Property Report - ANSWER-document produced by Alberta Land Surveyor
Which of the following is not a non-price determinant of demand - ANSWER-cost of
production
What type of economy does Canada have? - ANSWER-mixed economy
Benefits of RECAS trust assurance and practice review program - ANSWER-- effective
record keeping and administrative procedures
- education and advice in relation to brokerage trust accounting
- identifies and resolves potential problems regarding brokerage trust accounting
requirements
Responsibilities of RECA - ANSWER-- Handling professional conduct review
- establishing industry standards of practice
, - issuing authorization to trade in real estate
Four factors of production - ANSWER-land, labor, capital, entrepreneurship
RECA provides the following annual reports - ANSWER-- financial reports
- industry statistics
- reports for the previous year
The structure of real estate in Alberta includes; - ANSWER-- local real estate boards
- alberta real estate association
- canadian real estate association
Referral definition - ANSWER-The act of recommending or directing a person for
service to another person or business
- brokerage is responsible for paying and receiving remuneration in connection to trade
RECAS professional conduct review Objects - ANSWER-- gather all relevant
information
- treat parties fairly
-gather information efficiently
Designated Agency vs Common law - ANSWER-Designated Agency
- relationship with individual instead of brokerage
- conflict of interest only if agent has an interest in property
Common Law
- agency relationship exists
- conflict of interest extends to whole brokerage
- must be disclosed
Inducement vs incentives - ANSWER-- Inducement is client specific
- incentives must be offered by brokerage to everyone
If industry professional withdraws from profession during disciplinary proceedings -
ANSWER-- RECA issues a news release
- all disciplinary proceedings terminated
- lifetime ban from all industry professions governed by RECA
Advisory Notes - ANSWER-Technical breach of legislation
- ex. forgetting brokerage name on marketing
Amendments to the Act - ANSWER-- can be made by provincial legislature with
recommendations by the Minister of Service Alberta
Amendments to the rules - ANSWER-The rules contain the day to day activities
- council has the authority to create and amend
QUESTIONS AND ANSWERS 100%
ACCURATE
Which of the following is NOT a RECA educational resource for industry professionals?
- ANSWER-Spatial Information System (Spin 2)
Which entity has the authority to amend the Real Estate Act - ANSWER-Provincial
Legislature
Which of the following measures the change in a cost of a fixed basket of goods and
services purchased by families over a period of time - ANSWER-Consumer Price Index
(CPI)
Which of the following will occur to the supply of a good when there is a change in
quantity supplied due to a price increase? - ANSWER-an increase in quantity supplied
Microeconics - ANSWER-studies the basic theories of supply and demand as it relates
to individuals, households and firms
Resource Markets - ANSWER-facilitate the exchange of factors of production
What causes the quantity demanded to shift? - ANSWER-change in tastes,
expectations, and number of consumers
benefits of economic growth - ANSWER-depletion of natural resources
Real Property Report - ANSWER-document produced by Alberta Land Surveyor
Which of the following is not a non-price determinant of demand - ANSWER-cost of
production
What type of economy does Canada have? - ANSWER-mixed economy
Benefits of RECAS trust assurance and practice review program - ANSWER-- effective
record keeping and administrative procedures
- education and advice in relation to brokerage trust accounting
- identifies and resolves potential problems regarding brokerage trust accounting
requirements
Responsibilities of RECA - ANSWER-- Handling professional conduct review
- establishing industry standards of practice
, - issuing authorization to trade in real estate
Four factors of production - ANSWER-land, labor, capital, entrepreneurship
RECA provides the following annual reports - ANSWER-- financial reports
- industry statistics
- reports for the previous year
The structure of real estate in Alberta includes; - ANSWER-- local real estate boards
- alberta real estate association
- canadian real estate association
Referral definition - ANSWER-The act of recommending or directing a person for
service to another person or business
- brokerage is responsible for paying and receiving remuneration in connection to trade
RECAS professional conduct review Objects - ANSWER-- gather all relevant
information
- treat parties fairly
-gather information efficiently
Designated Agency vs Common law - ANSWER-Designated Agency
- relationship with individual instead of brokerage
- conflict of interest only if agent has an interest in property
Common Law
- agency relationship exists
- conflict of interest extends to whole brokerage
- must be disclosed
Inducement vs incentives - ANSWER-- Inducement is client specific
- incentives must be offered by brokerage to everyone
If industry professional withdraws from profession during disciplinary proceedings -
ANSWER-- RECA issues a news release
- all disciplinary proceedings terminated
- lifetime ban from all industry professions governed by RECA
Advisory Notes - ANSWER-Technical breach of legislation
- ex. forgetting brokerage name on marketing
Amendments to the Act - ANSWER-- can be made by provincial legislature with
recommendations by the Minister of Service Alberta
Amendments to the rules - ANSWER-The rules contain the day to day activities
- council has the authority to create and amend
