RECA Fundamentals Chapter #5 Exam
Questions with Correct Answers
What are the two types of laws? - Answer-Statute law: Federal or Provincial law
Common law: Laws based on previous decisions on similar matters
When you make an agreement/contract with a client is that agreement with you or the
brokerage? - Answer-it is not with you, it is with the brokerage
There are representative relationships and non-representative relationship relationships.
When does it become a representative relationship? - Answer-When they sign a
contract or a verbal agreement.
Is a real estate agent allowed to represent both buyer and seller? - Answer-No the
agent would then be in a conflict of interest. The agent is only allowed to either
represent the buyer or the seller.... Unless there is a written letter stating that both
parties are okay with the conflict of interest.
What are the 5 D's of Role of clarity? - Answer-1 Discuss
2 Determine
3 Document
4 Disclose
5 Do
What are the obligations to the client that you have?? - Answer-• Exercise Skill and care
• Act Honestly
• Perform Mandate
• Obey Lawful Instructions
• Act in Person
• Disclose Information
• Negotiate Favorable Terms
• Maintain Confidentiality Fiduciary Duties
Can you fill out forms on behalf of a buyer when you are employed by the seller? -
Answer-yes, you can because you are helping the sale go through. but you can't give
them any discretionary advice or judgment calls.
you cant give them confidential advice
you cant also represent them
What are the FUNDAMENTAL Principles of Fiduciary Duties? ` - Answer-- Trust and
confidence
Questions with Correct Answers
What are the two types of laws? - Answer-Statute law: Federal or Provincial law
Common law: Laws based on previous decisions on similar matters
When you make an agreement/contract with a client is that agreement with you or the
brokerage? - Answer-it is not with you, it is with the brokerage
There are representative relationships and non-representative relationship relationships.
When does it become a representative relationship? - Answer-When they sign a
contract or a verbal agreement.
Is a real estate agent allowed to represent both buyer and seller? - Answer-No the
agent would then be in a conflict of interest. The agent is only allowed to either
represent the buyer or the seller.... Unless there is a written letter stating that both
parties are okay with the conflict of interest.
What are the 5 D's of Role of clarity? - Answer-1 Discuss
2 Determine
3 Document
4 Disclose
5 Do
What are the obligations to the client that you have?? - Answer-• Exercise Skill and care
• Act Honestly
• Perform Mandate
• Obey Lawful Instructions
• Act in Person
• Disclose Information
• Negotiate Favorable Terms
• Maintain Confidentiality Fiduciary Duties
Can you fill out forms on behalf of a buyer when you are employed by the seller? -
Answer-yes, you can because you are helping the sale go through. but you can't give
them any discretionary advice or judgment calls.
you cant give them confidential advice
you cant also represent them
What are the FUNDAMENTAL Principles of Fiduciary Duties? ` - Answer-- Trust and
confidence
