RECA RESIDENTIAL EXAM FINAL
COMPREHENSIVE ASSESSMENT TEST
PAPER QUESTIONS AND SOLUTIONS
⩥ 8 General Obligations of REPs.
Answer: Exercise Care and Skill, Act Honestly, Negotiate
Favourable terms, Maintain Confidentiality, Disclose
Information, Act in Person, Obey Lawful Instructions, Perform
Mandate
⩥ 6 Points of Fiduciary Duties.
Answer: Provide Utmost Loyalty, Not make secret profits,
Handle Confident Information Properly, To Account, Avoid
conflicts of interest, Disclose conflicts of interest.
⩥ "To Account" meaning.
Answer: Real estate professionals must account for all money
and/or property belonging to the client.
⩥ "arm's length transaction" meaning.
,Answer: In real estate, an arm's length transaction is when the
buyer and seller each act in their own self-interest to try to get
the best deal they can.
⩥ 4 common examples of deals that are not arm's length
transactions.
Answer: Sales between friends or family members, Sales
between an employer and his or her employees, Sales between a
parent company and one of its subsidiaries, Sales between a trust
and its beneficiaries.
⩥ 2 options if REP cannot provide competent service to a client.
Answer: Be Supervised, Refer
⩥ 3 measures to determine if REP has met the standard of care.
Answer: Professional Standards, Professional Norms and
Practices, Expert Testimony
⩥ "Expert Testimony" Meaning.
Answer: Other real estate professionals, or experts, may provide
information as to the expectations of a reasonable and prudent
real estate professional.
,⩥ 9 points in "Meeting the Standard of Care".
Answer: 1. Know the Type of Consumer Relationship 2. Act
consistent with the relationship chosen 3. Know the Brokerage
Service 4. Know the brokerage Policies and procedures 5. Be
Aware of Market and Practical Issues 6. Make Reasonable
Efforts to Confirm information 7. Exercise Due care when
preparing documents 8. Seek Advice when appropriate 9. Be a
Lifelong learner
⩥ When is written disclosure needed?.
Answer: Whenever a REP receives or is about to receive
confidential information.
⩥ 4 things that must be included in written disclosure.
Answer: 1. Whether the REP has entered into a representation
relationship with another party 2. The service the REP will
provide the consumer 3. Any conflicts of interest that may exist
4. Any additional facts or information that may influence the
consumer's decision.
⩥ RECA's Consumer Relationship Guide.
, Answer: Guide that includes all information REPs must include
in written disclosures under the Rules.
⩥ Customer acknowledgement form.
Answer: Form needed when representation relationship is
chosen by consumer.
⩥ Written Service Agreement.
Answer: Form needed when representation relationship is
chosen by consumer.
⩥ Do RECA's consumer relationships guide, customer
Acknowledgement forms and written service agreements contain
mandatory content?.
Answer: Yes, but content, meaning and intent must not be
altered.
⩥ Representation relationships are NOT established by the
following 4 actions.
Answer: 1. REP conveying documents or providing general
information 2. REP using certain terms to refer to consumers 3.
Consumers using certain terms to refer to REP 4. Consumers
paying remuneration to the REP's brokerage.
COMPREHENSIVE ASSESSMENT TEST
PAPER QUESTIONS AND SOLUTIONS
⩥ 8 General Obligations of REPs.
Answer: Exercise Care and Skill, Act Honestly, Negotiate
Favourable terms, Maintain Confidentiality, Disclose
Information, Act in Person, Obey Lawful Instructions, Perform
Mandate
⩥ 6 Points of Fiduciary Duties.
Answer: Provide Utmost Loyalty, Not make secret profits,
Handle Confident Information Properly, To Account, Avoid
conflicts of interest, Disclose conflicts of interest.
⩥ "To Account" meaning.
Answer: Real estate professionals must account for all money
and/or property belonging to the client.
⩥ "arm's length transaction" meaning.
,Answer: In real estate, an arm's length transaction is when the
buyer and seller each act in their own self-interest to try to get
the best deal they can.
⩥ 4 common examples of deals that are not arm's length
transactions.
Answer: Sales between friends or family members, Sales
between an employer and his or her employees, Sales between a
parent company and one of its subsidiaries, Sales between a trust
and its beneficiaries.
⩥ 2 options if REP cannot provide competent service to a client.
Answer: Be Supervised, Refer
⩥ 3 measures to determine if REP has met the standard of care.
Answer: Professional Standards, Professional Norms and
Practices, Expert Testimony
⩥ "Expert Testimony" Meaning.
Answer: Other real estate professionals, or experts, may provide
information as to the expectations of a reasonable and prudent
real estate professional.
,⩥ 9 points in "Meeting the Standard of Care".
Answer: 1. Know the Type of Consumer Relationship 2. Act
consistent with the relationship chosen 3. Know the Brokerage
Service 4. Know the brokerage Policies and procedures 5. Be
Aware of Market and Practical Issues 6. Make Reasonable
Efforts to Confirm information 7. Exercise Due care when
preparing documents 8. Seek Advice when appropriate 9. Be a
Lifelong learner
⩥ When is written disclosure needed?.
Answer: Whenever a REP receives or is about to receive
confidential information.
⩥ 4 things that must be included in written disclosure.
Answer: 1. Whether the REP has entered into a representation
relationship with another party 2. The service the REP will
provide the consumer 3. Any conflicts of interest that may exist
4. Any additional facts or information that may influence the
consumer's decision.
⩥ RECA's Consumer Relationship Guide.
, Answer: Guide that includes all information REPs must include
in written disclosures under the Rules.
⩥ Customer acknowledgement form.
Answer: Form needed when representation relationship is
chosen by consumer.
⩥ Written Service Agreement.
Answer: Form needed when representation relationship is
chosen by consumer.
⩥ Do RECA's consumer relationships guide, customer
Acknowledgement forms and written service agreements contain
mandatory content?.
Answer: Yes, but content, meaning and intent must not be
altered.
⩥ Representation relationships are NOT established by the
following 4 actions.
Answer: 1. REP conveying documents or providing general
information 2. REP using certain terms to refer to consumers 3.
Consumers using certain terms to refer to REP 4. Consumers
paying remuneration to the REP's brokerage.
