RECA RESIDENTIAL EXAM PRACTICE QUESTIONS COMPLETE WITH 100% VERIFIED ANSWERS

RECA RESIDENTIAL EXAM PRACTICE QUESTIONS COMPLETE WITH 100% VERIFIED ANSWERS 1. What is the primary characteristic of fiduciary representation? A) Financial gain for the agent B) Trust, confidence, and loyalty C) Quick property sales D) Legal documentation only Correct Answer: B Rationale: Fiduciary representation is built on trust and confidence, requiring the agent to act in the client's best interests with loyalty. Options A, C, and D are incorrect as they do not capture the fundamental nature of fiduciary duty. ________________________________________ 2. Which of the following is NOT one of the 5 Ds of Role Clarity? A) Discuss B) Determine C) Document D) Design Correct Answer: D Rationale: The 5 Ds are Discuss, Determine, Document, Disclose, and Do. Design is not part of this framework for role clarity in real estate transactions. ________________________________________ 3. What must be disclosed in writing to consumers? A) Only the property value B) Nature of services, conflicts of interest, and representation relationships C) The agent's commission structure only D) Previous sales history Correct Answer: B Rationale: Written disclosure must include the nature of services provided, whether the professional has entered into representation with other parties, any conflicts of interest, and other facts that may influence decisions. ________________________________________ 4. The 5 Ds of Role Clarity were created to: A) Increase agent profits B) Clarify and provide proof of understanding in case issues arise C) Speed up the closing process D) Reduce paperwork requirements Correct Answer: B Rationale: The 5 Ds framework exists to clarify roles and provide documentation proof should disputes or issues arise during the transaction. ________________________________________ 5. When a consumer chooses a representation relationship, they become a: A) Customer B) Client C) Third party D) Observer Correct Answer: B Rationale: When a consumer chooses a representation relationship, they become a client, and a Written Service Agreement must be provided with a signed copy to the brokerage. ________________________________________ 6. What is required when a consumer enters a non-representation relationship? A) Written Service Agreement B) Customer Acknowledgement Form C) Power of Attorney D) Building Permit Correct Answer: B Rationale: Customer Acknowledgement Forms are used for non-representation relationships where the consumer becomes a customer rather than a client. ________________________________________ 7. PIPEDA is: A) Alberta's privacy legislation B) Federal privacy legislation C) A real estate commission D) A building code regulation Correct Answer: B Rationale: PIPEDA is federal legislation governing privacy matters in Canada, while PIPA is Alberta's specific legislation. ________________________________________ 8. PIPA is Alberta's legislation regarding: A) Building standards B) How private organizations use and disclose personal information C) Property taxation D) Real estate commissions Correct Answer: B Rationale: PIPA (Personal Information Protection Act) governs how private organizations in Alberta collect, use, and disclose personal information. ________________________________________ 9. A Power of Attorney allows someone to: A) Buy property without consent B) Act on behalf of another person C) Override court decisions D) Bypass building codes Correct Answer: B Rationale: A Power of Attorney is a legal document authorizing someone to act on your behalf. It does not allow bypassing laws or court decisions. ________________________________________ 10. What is the minimum age requirement for a Power of Attorney donor? A) 16 B) 18