RECA FUNDAMENTALS EXAM | NEWEST ACTUAL EXAM COMPREHENSIVE QUESTIONS AND VERIFIED ANSWERS GRADED A+ | 100% CORRECT | LATEST 2026/2027 UPDATE!!

RECA FUNDAMENTALS EXAM | NEWEST ACTUAL EXAM COMPREHENSIVE QUESTIONS AND VERIFIED ANSWERS GRADED A+ | 100% CORRECT | LATEST 2026/2027 UPDATE!! Tort Law - Correct Answer Compensation for civil wrongs that result in harm - Negligent Tort - carelessness, failure to exercise reasonable care - Intentional Tort - assault, fraud, theft, defamation - strict liability Tort - the act itself, producting defective products, using hazardous materials Elements of representation relationships - Correct Answer - controlled by principal (client) - involves fiduciary duties - affects principals legal position Transaction Brokerage - Correct Answer -means to resolve conflict of interests - if both clients accept conflict trade can proceed - written agreement - clients must have opportunity to review agreement before signing - must get opportunity to ask questions Benefits of REIX - Correct Answer - enhances the image of the profession - has the potential to save on insurance costs - The profession is active in managing the program and its risks Duty based approach to ethical decision making - Correct Answer - individuals intentions or motives - belief in universal moral system of ethical reasoning - individuals should do the right thing because its the right thing to do Errors and Omissions Insurance - Correct Answer real estate equivalent of malpractice coverage Voluntary Broker Resolution Process (VBRP) - Correct Answer - enables broker to take the lead in resolving complaints and disputes - prior to RECA + Formal courts - brokers confer with REIX before proceeding Privacy Law - Correct Answer - Brokerages must designate a privacy officer to be accountable for compliance - must be consistent with the applicable privacy legislation Benefits of Voluntary Broker Resolution Process - Correct Answer - avoids time and intrusion involved with RECA investigation - identifies deficient brokerage practices that need improvement - allows participation in the process to achieve acceptable resolution - opportunity to mend relationship with consumer Comprehensive General Liability Insurance - Correct Answer - broad coverage for claims against injury/damage - civil liability (a fall) - any damages or injuries - legal defense costs - does not cover issues related to real estate transactions Three components of broker leadership - Correct Answer Authority, responsibility, and accountability Reactions to conflict - Correct Answer Physical, Cognitive, Emotional Principles of Competition Act - Correct Answer - Do not collude with competitors - do not discriminate against or refuse to do business with competitors - do not mislead the public through advertisement or representation Confidential information - Correct Answer includes both personal and business information - not readily available info, may have value Civil liability - Correct Answer - private legal action between disputing parties - involves and plaintiff and defendant appearing in court - established by the courts at the conclusion of legal proceedings Types of Consent - Correct Answer Express (most important) - given verbally or in writing Implied - does not specifically give, but volunteers personal information Opt-out - unless the individual takes action, can assume consent is given Legacy Information - Correct Answer - personal information collected before application privacy legislation came into effect - considered to be collected with consent - may be used for a new purpose other than original purpose if new consent is obtained