RECA FUNDAMENTALS
COMPREHENSIVE STUDY GUIDE 2026
FULL QUESTIONS AND SOLUTIONS
GRADED A+
◍ Type of Fraud - false deposit.
Answer: false statement causing lender to make decision
◍ Type of Fraud - equity access.
Answer: owner seeks funds using accumulated equity
◍ Type of Fraud - Secret Second.
Answer: second mortgage that is kept secret
◍ Type of Fraud - Air loan.
Answer: loan advanced on property that does not exist
◍ Type of Fraud - inflated appraisal.
Answer: appraiser values property higher than worth
◍ Type of Fraud - vendor cash back.
Answer: purchased property for higher price, amends price however lender
uses higher price for mortgage
◍ Type of Fraud - Contract Kiting.
Answer: two contracts, one agreed price, one higher price. Higher price is
given to lender
◍ Type of Fraud - Straw buyer.
Answer: sells credit information
◍ Who is responsible for producing the "Real Property Report"?.
Answer: Alberta Land Surveyor
,◍ Who has the power to amend the Rules of the RE Act?.
Answer: Council (not the Provincial Legislature, their job is to amend the
RE Act itself - two very different things)
◍ Who has the power to suspend / revoke a license?.
Answer: The Executive Director- determines the length of suspension-
serves the decision on the industry professional- will consider the evidence
when making the decision
◍ What's included in written service agreements?.
Answer: - the services to be provided by the brokerage- the responsibilities
of each party to the agreement (i.e. remuneration from client to brokerage)-
the names of the parties to the agreement
◍ Length of time a license is valid for if NOT registered w a brokerage.
Answer: 36 months
◍ Level of Disclosure: Other party represented by another brokerage.
Answer: Level 1
◍ Level of Disclosure: Other party not represented.
Answer: Level 2
◍ Level of Disclosure: Other party represented by same brokerage.
Answer: Level 3
◍ Inducement vs incentives.
Answer: - Inducement is client specific- Incentive is offered by the
brokerage to any potential client
◍ Records must be:.
Answer: - kept in Alberta- maintained in electronic form- kept by brokerage
for 3 years- accessible to RECA for inspection- they can be held in multiple
locations, provided they're all in Alberta
◍ What is express consent?.
Answer: Consent given verbally or in writing (Think of your relationship
with your lawyer)
, ◍ What is implied consent?.
Answer: Consent where personal information is volunteered without being
specifically given (think of you giving your doctor confidential information)
◍ What is opt-out consent?.
Answer: Consent assumed to be given unless the individual takes action
(think of Swedish organ donor laws)
◍ What is Express Authority?.
Answer: written or verbal
◍ What is Implied Authority?.
Answer: whatever needed to accomplish action
◍ What is Customary Authority?.
Answer: widely accepted way of behaving or performing action
◍ Types of Representation Termination.
Answer: Agreement - mutual (both parties agree)- expiry (set date)-
completion/performance (ends once purpose is achieved)Revocation-
mutual consent - lawfully - either party fails to fulfil duties- unlawful -
terminated without consent from both parties (parties fulfilled
duties)Operation of Law- impossible, illegial, death, mental incapacity,
bankruptcyFrustration- One party is no longer able to uphold their end of the
bargain and the other party terminates the relationship
◍ 3 types of "Rights of Land" (Think FLL).
Answer: Fee Simple - freehold, absolute owner of landLeasehold - interest
in land expires with lease agreementLife Estate - interest in land for duration
of life- reverts to fee simple with death
◍ Land (definition & characteristics).
Answer: includes physical ground and air spacecharacteristics;- durable,
rigid, immobile, unique, scarce
◍ Real Estate vs Property vs Real Property.
Answer: Real estate- Raw land + any improvements that are permanent or
COMPREHENSIVE STUDY GUIDE 2026
FULL QUESTIONS AND SOLUTIONS
GRADED A+
◍ Type of Fraud - false deposit.
Answer: false statement causing lender to make decision
◍ Type of Fraud - equity access.
Answer: owner seeks funds using accumulated equity
◍ Type of Fraud - Secret Second.
Answer: second mortgage that is kept secret
◍ Type of Fraud - Air loan.
Answer: loan advanced on property that does not exist
◍ Type of Fraud - inflated appraisal.
Answer: appraiser values property higher than worth
◍ Type of Fraud - vendor cash back.
Answer: purchased property for higher price, amends price however lender
uses higher price for mortgage
◍ Type of Fraud - Contract Kiting.
Answer: two contracts, one agreed price, one higher price. Higher price is
given to lender
◍ Type of Fraud - Straw buyer.
Answer: sells credit information
◍ Who is responsible for producing the "Real Property Report"?.
Answer: Alberta Land Surveyor
,◍ Who has the power to amend the Rules of the RE Act?.
Answer: Council (not the Provincial Legislature, their job is to amend the
RE Act itself - two very different things)
◍ Who has the power to suspend / revoke a license?.
Answer: The Executive Director- determines the length of suspension-
serves the decision on the industry professional- will consider the evidence
when making the decision
◍ What's included in written service agreements?.
Answer: - the services to be provided by the brokerage- the responsibilities
of each party to the agreement (i.e. remuneration from client to brokerage)-
the names of the parties to the agreement
◍ Length of time a license is valid for if NOT registered w a brokerage.
Answer: 36 months
◍ Level of Disclosure: Other party represented by another brokerage.
Answer: Level 1
◍ Level of Disclosure: Other party not represented.
Answer: Level 2
◍ Level of Disclosure: Other party represented by same brokerage.
Answer: Level 3
◍ Inducement vs incentives.
Answer: - Inducement is client specific- Incentive is offered by the
brokerage to any potential client
◍ Records must be:.
Answer: - kept in Alberta- maintained in electronic form- kept by brokerage
for 3 years- accessible to RECA for inspection- they can be held in multiple
locations, provided they're all in Alberta
◍ What is express consent?.
Answer: Consent given verbally or in writing (Think of your relationship
with your lawyer)
, ◍ What is implied consent?.
Answer: Consent where personal information is volunteered without being
specifically given (think of you giving your doctor confidential information)
◍ What is opt-out consent?.
Answer: Consent assumed to be given unless the individual takes action
(think of Swedish organ donor laws)
◍ What is Express Authority?.
Answer: written or verbal
◍ What is Implied Authority?.
Answer: whatever needed to accomplish action
◍ What is Customary Authority?.
Answer: widely accepted way of behaving or performing action
◍ Types of Representation Termination.
Answer: Agreement - mutual (both parties agree)- expiry (set date)-
completion/performance (ends once purpose is achieved)Revocation-
mutual consent - lawfully - either party fails to fulfil duties- unlawful -
terminated without consent from both parties (parties fulfilled
duties)Operation of Law- impossible, illegial, death, mental incapacity,
bankruptcyFrustration- One party is no longer able to uphold their end of the
bargain and the other party terminates the relationship
◍ 3 types of "Rights of Land" (Think FLL).
Answer: Fee Simple - freehold, absolute owner of landLeasehold - interest
in land expires with lease agreementLife Estate - interest in land for duration
of life- reverts to fee simple with death
◍ Land (definition & characteristics).
Answer: includes physical ground and air spacecharacteristics;- durable,
rigid, immobile, unique, scarce
◍ Real Estate vs Property vs Real Property.
Answer: Real estate- Raw land + any improvements that are permanent or
