RECA FUNDAMENTALS STUDY GUIDE
EXAM QUESTIONS AND ANSWERS 2025
/2026
duty-based ethics - Answer-Individual is expected to do the right thing cause it's the
right thing to do, regardless of outcome
utalitarian ethics - Answer-Sells the optimal result for the greatest number of people
Advisory note - Answer-Punishment for a technical breach
Administrative penalty/ fine - Answer-One or two potentially serious infraction would
cause this punishment
Ratification- acting without authority or in excess of authority
Implication- advice outside of objective - Answer-These two ways of creating a
representation relationship should not be done in real estate
By Estoppel - Answer-This representation relationship arises when a principal acts in a
way that leads a third party to believe an agent has been given authority when in
actuality the agent hasn't consented or even knows about it
By operation of law - Answer-This type of representation relationship is created when
someone takes action to save a property or person from imminent danger/ damages
Ethics - Answer-Voluntary set of rules and guiding principles an individual uses as their
moral compass. Standard of conduct adopted and practiced within a culture or society li
Morals - Answer-A set of beliefs held by an individual and founded on fundamental
principles of right and wrong. Ex. Religious
Tort law - Answer-What area of law deals with civil wrong doings for which the courts
may grant a remedy. ( harm to a person or damage to property)
35,000$ - Answer-Max the real estate assurance fund may pay per claimant for
damages or losses to the services of a real estate professional
Purpose of Real Estate Assurance Fund - Answer-Compensate consumers who have
received court judgement against a real estate professional for fraud or breach of trust
Real estate insurance exchange
REIX - Answer-To protect real estate professionals when they make a mistake
regarding their business
,Kohlbergs highest stage of moral development - Answer-Where moral development is
based on individual reflection and analysis of the issues ( level 3 stage 6)
Right of Recission - Answer-The ability of purchasers to cancel their purchase contract
with a developer within 10 days
Condominium - Answer-Ownership in common with others
CADS - Answer-If someone forgets the condo management company name for any
reason where would they find it
General power of attorney - Answer-Can make all decisions about finances or legal
affairs has no limit other then where they'll live or health care
Yes - Answer-Will power or at tourney be on the title
building permit - Answer-Permit that applies to specific project that is an improvement to
the property
development permit - Answer-Permit that applies to overall use of the land
It was legal at time of development - Answer-Non conforming suite means ?
Waterworks
Repair of roads
Ambulance - Answer-Municipal special taxes are for
Business revitalization tax - Answer-Taxes used in a business district to improve
beauty, parking, or promote
24 hrs - Answer-Landlord may enter without consent but with notice after giving how
much notice
Assignment - Answer-Tenant isn't returning to the property so all obligations and rights
go to the new tenant
Sublease - Answer-Tenant will be returning to the property, and they're still liable to the
landlord
Condominium Property Act - Answer-Condos are governed by the
Agricultural and recreational land ownership act - Answer-This act prevents non
Canadians from buying significant amounts of prime land
, Personal information - Answer-Refers to information that makes an individual
identifiable
FINTRAC - Answer-Real Estate brokerages must report suspicious transactions to
which organization
Express
Implied
Opt-out - Answer-Types of consent
Guardian,
Cause they're not entitled to make financial decisions regarding land - Answer-Makes
decisions like healthcare, living arrangements, diet, dress. And they're not on title
search why?
Physical
Emotional
Cognitive - Answer-Reactions associated with conflicts or disputes
Authority
Responsibility
Accountability - Answer-In terms of brokerage what 3 components of leadership relate
to the broker
Negotiator - Answer-Brokers who use VBRP typically have experience in which role
Assumptions
Omissions - non act
Commissions- over act - Answer-Frequent causes of conflicts and disputes
3500$
7000$ - Answer-First claim with REIX
Second claim within 3 years if first
40 days - Answer-How many days does broker have to reach resolution in VBRP
Do not collude
Do not discriminate
Do not mislead public through advertising - Answer-3 basic principles of competition act
Written service agreement - Answer-What do you use if a customer chooses a
representation relationship therefore being a client
Customer acknowledgment form - Answer-What do you use if consumer chooses a
non-representation relationship therefore being a customer
EXAM QUESTIONS AND ANSWERS 2025
/2026
duty-based ethics - Answer-Individual is expected to do the right thing cause it's the
right thing to do, regardless of outcome
utalitarian ethics - Answer-Sells the optimal result for the greatest number of people
Advisory note - Answer-Punishment for a technical breach
Administrative penalty/ fine - Answer-One or two potentially serious infraction would
cause this punishment
Ratification- acting without authority or in excess of authority
Implication- advice outside of objective - Answer-These two ways of creating a
representation relationship should not be done in real estate
By Estoppel - Answer-This representation relationship arises when a principal acts in a
way that leads a third party to believe an agent has been given authority when in
actuality the agent hasn't consented or even knows about it
By operation of law - Answer-This type of representation relationship is created when
someone takes action to save a property or person from imminent danger/ damages
Ethics - Answer-Voluntary set of rules and guiding principles an individual uses as their
moral compass. Standard of conduct adopted and practiced within a culture or society li
Morals - Answer-A set of beliefs held by an individual and founded on fundamental
principles of right and wrong. Ex. Religious
Tort law - Answer-What area of law deals with civil wrong doings for which the courts
may grant a remedy. ( harm to a person or damage to property)
35,000$ - Answer-Max the real estate assurance fund may pay per claimant for
damages or losses to the services of a real estate professional
Purpose of Real Estate Assurance Fund - Answer-Compensate consumers who have
received court judgement against a real estate professional for fraud or breach of trust
Real estate insurance exchange
REIX - Answer-To protect real estate professionals when they make a mistake
regarding their business
,Kohlbergs highest stage of moral development - Answer-Where moral development is
based on individual reflection and analysis of the issues ( level 3 stage 6)
Right of Recission - Answer-The ability of purchasers to cancel their purchase contract
with a developer within 10 days
Condominium - Answer-Ownership in common with others
CADS - Answer-If someone forgets the condo management company name for any
reason where would they find it
General power of attorney - Answer-Can make all decisions about finances or legal
affairs has no limit other then where they'll live or health care
Yes - Answer-Will power or at tourney be on the title
building permit - Answer-Permit that applies to specific project that is an improvement to
the property
development permit - Answer-Permit that applies to overall use of the land
It was legal at time of development - Answer-Non conforming suite means ?
Waterworks
Repair of roads
Ambulance - Answer-Municipal special taxes are for
Business revitalization tax - Answer-Taxes used in a business district to improve
beauty, parking, or promote
24 hrs - Answer-Landlord may enter without consent but with notice after giving how
much notice
Assignment - Answer-Tenant isn't returning to the property so all obligations and rights
go to the new tenant
Sublease - Answer-Tenant will be returning to the property, and they're still liable to the
landlord
Condominium Property Act - Answer-Condos are governed by the
Agricultural and recreational land ownership act - Answer-This act prevents non
Canadians from buying significant amounts of prime land
, Personal information - Answer-Refers to information that makes an individual
identifiable
FINTRAC - Answer-Real Estate brokerages must report suspicious transactions to
which organization
Express
Implied
Opt-out - Answer-Types of consent
Guardian,
Cause they're not entitled to make financial decisions regarding land - Answer-Makes
decisions like healthcare, living arrangements, diet, dress. And they're not on title
search why?
Physical
Emotional
Cognitive - Answer-Reactions associated with conflicts or disputes
Authority
Responsibility
Accountability - Answer-In terms of brokerage what 3 components of leadership relate
to the broker
Negotiator - Answer-Brokers who use VBRP typically have experience in which role
Assumptions
Omissions - non act
Commissions- over act - Answer-Frequent causes of conflicts and disputes
3500$
7000$ - Answer-First claim with REIX
Second claim within 3 years if first
40 days - Answer-How many days does broker have to reach resolution in VBRP
Do not collude
Do not discriminate
Do not mislead public through advertising - Answer-3 basic principles of competition act
Written service agreement - Answer-What do you use if a customer chooses a
representation relationship therefore being a client
Customer acknowledgment form - Answer-What do you use if consumer chooses a
non-representation relationship therefore being a customer
