RECA FUNDAMENTALS ACTUAL EXAM
PAPER 2026 QUESTIONS WITH
ANSWERS GRADED A+
◍ Non-representation relationship.
Answer: A Real estate pro working with a party to trade in real estate buy is
not acting on behalf of that party, Is considered the customer
◍ Representational relationship.
Answer: Real estate pro ask for one of the parties to trade or potential trade
in real estate on behalf of the brokerage, is considered the client
◍ duty-based ethics.
Answer: Individual is expected to do the right thing cause it's the right thing
to do, regardless of outcome
◍ utalitarian ethics.
Answer: Sells the optimal result for the greatest number of people
◍ 5 d's of role clarity.
Answer: 1. discuss2. Determine3. Document4. Disclose, representative
capacity 5. Do, actions consistently
◍ Advisory note.
Answer: Punishment for a technical breach
◍ benefits of ensuring your role is understood.
Answer: 1. complies with regulatory requirements 2. enhances image of real
estate pros3. prevent unintended real estate relationships4. verifies
responsibilities 5. clarifies services6. reduces disputes
◍ Types of customers.
Answer: 1. Customer represented with a different brokerage2. Customer
, trades with client of brokerage3. Brokerage client trades with another
brokerage client 4. Consumer wants to be unrepresented
◍ Services provided to customers.
Answer: 1. Provide stats and info2. Provide standard form+agreements3.
Complete standard forms+agreements as per customers instructions4.
Recommend other industry pros5. deliver offers+counter offers to and from
the client
◍ Services not proved to customers.
Answer: 1. any confidential advice2. Any services that require discretion +
judgement3. Any services involving advocacy or representation
◍ Administrative penalty/ fine.
Answer: One or two potentially serious infraction would cause this
punishment
◍ Ratification- acting without authority or in excess of authorityImplication-
advice outside of objective.
Answer: These two ways of creating a representation relationship should not
be done in real estate
◍ Termination of a representation relationship.
Answer: 1. agreement2. revocation3. operation of law4. mutual consent5.
expiry6. completion/ performance
◍ By Estoppel.
Answer: This representation relationship arises when a principal acts in a
way that leads a third party to believe an agent has been given authority
when in actuality the agent hasn't consented or even knows about it
◍ By operation of law.
Answer: This type of representation relationship is created when someone
takes action to save a property or person from imminent danger/ damages
◍ Ethics.
Answer: Voluntary set of rules and guiding principles an individual uses as
, their moral compass. Standard of conduct adopted and practiced within a
culture or society li
◍ Morals.
Answer: A set of beliefs held by an individual and founded on fundamental
principles of right and wrong. Ex. Religious
◍ Tort law.
Answer: What area of law deals with civil wrong doings for which the
courts may grant a remedy. ( harm to a person or damage to property)
◍ 35,000$.
Answer: Max the real estate assurance fund may pay per claimant for
damages or losses to the services of a real estate professional
◍ Purpose of Real Estate Assurance Fund.
Answer: Compensate consumers who have received court judgement against
a real estate professional for fraud or breach of trust
◍ Real estate insurance exchangeREIX.
Answer: To protect real estate professionals when they make a mistake
regarding their business
◍ Kohlbergs highest stage of moral development.
Answer: Where moral development is based on individual reflection and
analysis of the issues ( level 3 stage 6)
◍ competing conflicts of interest.
Answer: Interest of clients represented by the same brokerage compete with
each other in regards to all real estate transaction or potential transactions (2
buyers purchasing the same property)
◍ Right of Recission.
Answer: The ability of purchasers to cancel their purchase contract with a
developer within 10 days
◍ opposing conflicts of interest.
Answer: Interest of clients represented by the same brokerage oppose one
PAPER 2026 QUESTIONS WITH
ANSWERS GRADED A+
◍ Non-representation relationship.
Answer: A Real estate pro working with a party to trade in real estate buy is
not acting on behalf of that party, Is considered the customer
◍ Representational relationship.
Answer: Real estate pro ask for one of the parties to trade or potential trade
in real estate on behalf of the brokerage, is considered the client
◍ duty-based ethics.
Answer: Individual is expected to do the right thing cause it's the right thing
to do, regardless of outcome
◍ utalitarian ethics.
Answer: Sells the optimal result for the greatest number of people
◍ 5 d's of role clarity.
Answer: 1. discuss2. Determine3. Document4. Disclose, representative
capacity 5. Do, actions consistently
◍ Advisory note.
Answer: Punishment for a technical breach
◍ benefits of ensuring your role is understood.
Answer: 1. complies with regulatory requirements 2. enhances image of real
estate pros3. prevent unintended real estate relationships4. verifies
responsibilities 5. clarifies services6. reduces disputes
◍ Types of customers.
Answer: 1. Customer represented with a different brokerage2. Customer
, trades with client of brokerage3. Brokerage client trades with another
brokerage client 4. Consumer wants to be unrepresented
◍ Services provided to customers.
Answer: 1. Provide stats and info2. Provide standard form+agreements3.
Complete standard forms+agreements as per customers instructions4.
Recommend other industry pros5. deliver offers+counter offers to and from
the client
◍ Services not proved to customers.
Answer: 1. any confidential advice2. Any services that require discretion +
judgement3. Any services involving advocacy or representation
◍ Administrative penalty/ fine.
Answer: One or two potentially serious infraction would cause this
punishment
◍ Ratification- acting without authority or in excess of authorityImplication-
advice outside of objective.
Answer: These two ways of creating a representation relationship should not
be done in real estate
◍ Termination of a representation relationship.
Answer: 1. agreement2. revocation3. operation of law4. mutual consent5.
expiry6. completion/ performance
◍ By Estoppel.
Answer: This representation relationship arises when a principal acts in a
way that leads a third party to believe an agent has been given authority
when in actuality the agent hasn't consented or even knows about it
◍ By operation of law.
Answer: This type of representation relationship is created when someone
takes action to save a property or person from imminent danger/ damages
◍ Ethics.
Answer: Voluntary set of rules and guiding principles an individual uses as
, their moral compass. Standard of conduct adopted and practiced within a
culture or society li
◍ Morals.
Answer: A set of beliefs held by an individual and founded on fundamental
principles of right and wrong. Ex. Religious
◍ Tort law.
Answer: What area of law deals with civil wrong doings for which the
courts may grant a remedy. ( harm to a person or damage to property)
◍ 35,000$.
Answer: Max the real estate assurance fund may pay per claimant for
damages or losses to the services of a real estate professional
◍ Purpose of Real Estate Assurance Fund.
Answer: Compensate consumers who have received court judgement against
a real estate professional for fraud or breach of trust
◍ Real estate insurance exchangeREIX.
Answer: To protect real estate professionals when they make a mistake
regarding their business
◍ Kohlbergs highest stage of moral development.
Answer: Where moral development is based on individual reflection and
analysis of the issues ( level 3 stage 6)
◍ competing conflicts of interest.
Answer: Interest of clients represented by the same brokerage compete with
each other in regards to all real estate transaction or potential transactions (2
buyers purchasing the same property)
◍ Right of Recission.
Answer: The ability of purchasers to cancel their purchase contract with a
developer within 10 days
◍ opposing conflicts of interest.
Answer: Interest of clients represented by the same brokerage oppose one
