RECA Exam Study Questions with correct Answers

RECA Exam Study Questions with correct Answers Carl, a real estate professional, is registered with Prime Plus Real Estate Ltd. He has listed his brother's house for sale with the brokerage. A real estate professional with another brokerage contacts Carl and asks to preview the property as she has a potential buyer. What level of disclosure must Carl provide? -Answer-Disclosure level 1 When evaluating an ethical dilemma, the first step is awareness. An individual may become aware of an ethical dilemma through a variety of ways. Which one of the following is typically NOT one of the ways? -Answer-Others tell you that you have an ethical dilemma Which of the following statements is correct regarding the length of time that real estate professionals are obligated to keep client information confidential? -Answer-It continues without a time limit after real estate services are no longer provided Which of the following describes what is meant by a lawful instruction? -Answer-Any instruction that is reasonable and ordinary under the circumstances Which of the following types of authority involve describing (orally or in writing) the actions that may be taken by an agent on behalf of a principal? -Answer-Express Authority Which of the following describes the party that exists outside of a representation relationship? - Answer-Third Party Which of the following is NOT a type of authority an agent may hold? -Answer-Functional Authority Which of the following are the only entities authorized to trade in real estate? -Answer-Real Estate Brokerages Which of the following categories of brokerage services involves numerous services that require the greatest level of discretion or judgement? -Answer-Property Management Services Which of the following does NOT apply to consideration? -Answer-Consideration always involves money What is the difference between a condition and a term in a contract? -Answer-Conditions must be waived for the contract to proceed, while a contract can still proceed with unmet terms Which of the following is NOT an essential element of a contract? -Answer-The contract must be in written form to be enforceable The Ogami's have just completed their first English language course. They want to start a family business and take out a mortgage on their small townhouse to get funds for the business. However the business fails and they must repay the mortgage. Since the Ogami's struggle with English, they did not understand the mortgage contract. If they challenge the contract, what term describes the possible result? -Answer-The contract may be voidable Which of the following is NOT characteristic of value in relation to a commodity? -Answer- Pricing Advisory Note -Answer-Which of the following Professional Conduct Review outcomes is issued as a practice guideline for a technical breach of the legislation? B) Statements II, III and IV -Answer-Which of the following statements is correct regarding the Real Estate Act Rules? The Rules may only be amended by the provincial legislature RECA posts the most current version of the Rules on its website The Rules refer to the standards of practice for industry professionals When contemplating amendments to the Rules, RECA consults with industry professionals and stakeholders Social Reaction -Answer-Which of the following is NOT a type of reaction associated with conflicts or disputes? Personal Information Protection Act -Answer-Which of the following is the provincial privacy legislation in Alberta? Authority, responsibility and accountability -Answer-In terms of the brokerage, what are the 3 components of leadership that relate to th