RECA RESIDENTIAL UNIT 9 EXAM
QUESTIONS WITH COMPLETE
SOLUTIONS
If the buyer enters into a legally binding contract to buy a property that matches the
search criteria, while the service agreement is in effect, but that purchase is not done
through the REP that they signed the service agreement with, do they still need to pay
the fee? - Answer-Yes (under and exclusive agreement)
When does a sale complete? - Answer-When all money has been paid to the lawyer
and that money is releasable.
How is content amended in a service agreement? - Answer-by deleting content, strike a
single line through the content to be deleted and ensure the buyer/seller initials the
deletion
If the expiry date is Tuesday, for example, who the document end a) Midnight on
Monday night b) Tuesday at noon or C) Tuesday at 11:59pm - Answer-C)
True or False - The written agreement must describe the types of property the buyer is
looking for and the areas (locations) of interest to them. - Answer-True
True or False - Buyers can enter into multiple exclusive representation relationships
with different real estate brokerages without triggering the need to pay multiple
commissions. - Answer-True - This is possible for buyers to enter into multiple exclusive
agreements, by ensuring the search criteria does not overlap (eg. property type, styles,
areas, cities)
True or False - Written service agreements can be structured in such a way so that the
buyer is not required to pay their REP a commission - Answer-True
True or False - The Buyer's REP must communicate to the buyer that they have no
obligation to show the buyer properties not meeting the remuneration expectations
outlined in the representation agreement. - Answer-True
2 key considerations that apply to the use of any of the more common residential
purchase contracts and other purchase-related forms are: - Answer-1. Use current
contract version
2. Use property-appropriate contracts (ie. condominium, rural residential)
True or False - There is only one residential purchase contract that may be used for
each type of property and agency set up. - Answer-False. contracts may be available
, from a variety of sources, such as the brokerage, trade association, local real estate
board, paper/electronic forms providers, or a real estate lawyer.
The purchase contract typically stipulates that unlerss otherwise agreed to in writing but
the parties to the transaction, the title will be free and clear of all encumbrances and
obligations except the following (x4) - Answer-1. Those items that are implied by law
2. Easements, utility rights-of-way, and covenants (as they run with the land)
3. Homeowner Association caveats, encumbrances and similar regulations (as they run
with the land)
4. Any other items the buyer agreed to assume in the purchase contract.
When is the initial deposit made by the buyer usually deposited? - Answer-When the
initial deposit will be deposited, the rules require that it will be no later than the third
business day after the final signing of the purchase contact occurred.
Is interest due on purchase deposits? - Answer-Generally no. No interest on the
deposits will be paid to the buyer or seller unless specified otherwise.
What happens if the brokerage holding trust funds ceases to be licensed by RECA to
trade in real estate? - Answer-The buyer and seller agree to allow the trust funds to be
transferred to the brokerage representing the other party.
Interest on deposits - Answer-Interest may be paid to the buyer if added to the contract
negotiation. Until the day of closing, deposit is still the buyer's funds, held in trust.
The organization holding the buyer's deposit in trust will have a policy as to paying
interest on deposits, generally specifying the minimum amount of deposit funds and the
minimum amount of time these funds must be held to qualify for any interest. A rate of
interest for funds held in trust is usually prescribed as well.
Should changes in commission agreement or similar changes be added to a purchase
contract? - Answer-No, REPs are not parties to the purchase contract. Any
renegotiation of compensation related to the transaction must be addressed through an
amendment to the service agreement between the respective client and their REP.
True or false - In general, Alberta residential real estate contracts use conditions
precedent. - Answer-True. This mean that a condition must be waived in writing before
it's expiry date in order for it to be removed as an impediment to the transaction.
4 potential outcomes for any condition in a purchase contract. - Answer-Expiry, removal,
non-removal, extension
Another way to refer to an unconditional sale - Answer-firm sale
QUESTIONS WITH COMPLETE
SOLUTIONS
If the buyer enters into a legally binding contract to buy a property that matches the
search criteria, while the service agreement is in effect, but that purchase is not done
through the REP that they signed the service agreement with, do they still need to pay
the fee? - Answer-Yes (under and exclusive agreement)
When does a sale complete? - Answer-When all money has been paid to the lawyer
and that money is releasable.
How is content amended in a service agreement? - Answer-by deleting content, strike a
single line through the content to be deleted and ensure the buyer/seller initials the
deletion
If the expiry date is Tuesday, for example, who the document end a) Midnight on
Monday night b) Tuesday at noon or C) Tuesday at 11:59pm - Answer-C)
True or False - The written agreement must describe the types of property the buyer is
looking for and the areas (locations) of interest to them. - Answer-True
True or False - Buyers can enter into multiple exclusive representation relationships
with different real estate brokerages without triggering the need to pay multiple
commissions. - Answer-True - This is possible for buyers to enter into multiple exclusive
agreements, by ensuring the search criteria does not overlap (eg. property type, styles,
areas, cities)
True or False - Written service agreements can be structured in such a way so that the
buyer is not required to pay their REP a commission - Answer-True
True or False - The Buyer's REP must communicate to the buyer that they have no
obligation to show the buyer properties not meeting the remuneration expectations
outlined in the representation agreement. - Answer-True
2 key considerations that apply to the use of any of the more common residential
purchase contracts and other purchase-related forms are: - Answer-1. Use current
contract version
2. Use property-appropriate contracts (ie. condominium, rural residential)
True or False - There is only one residential purchase contract that may be used for
each type of property and agency set up. - Answer-False. contracts may be available
, from a variety of sources, such as the brokerage, trade association, local real estate
board, paper/electronic forms providers, or a real estate lawyer.
The purchase contract typically stipulates that unlerss otherwise agreed to in writing but
the parties to the transaction, the title will be free and clear of all encumbrances and
obligations except the following (x4) - Answer-1. Those items that are implied by law
2. Easements, utility rights-of-way, and covenants (as they run with the land)
3. Homeowner Association caveats, encumbrances and similar regulations (as they run
with the land)
4. Any other items the buyer agreed to assume in the purchase contract.
When is the initial deposit made by the buyer usually deposited? - Answer-When the
initial deposit will be deposited, the rules require that it will be no later than the third
business day after the final signing of the purchase contact occurred.
Is interest due on purchase deposits? - Answer-Generally no. No interest on the
deposits will be paid to the buyer or seller unless specified otherwise.
What happens if the brokerage holding trust funds ceases to be licensed by RECA to
trade in real estate? - Answer-The buyer and seller agree to allow the trust funds to be
transferred to the brokerage representing the other party.
Interest on deposits - Answer-Interest may be paid to the buyer if added to the contract
negotiation. Until the day of closing, deposit is still the buyer's funds, held in trust.
The organization holding the buyer's deposit in trust will have a policy as to paying
interest on deposits, generally specifying the minimum amount of deposit funds and the
minimum amount of time these funds must be held to qualify for any interest. A rate of
interest for funds held in trust is usually prescribed as well.
Should changes in commission agreement or similar changes be added to a purchase
contract? - Answer-No, REPs are not parties to the purchase contract. Any
renegotiation of compensation related to the transaction must be addressed through an
amendment to the service agreement between the respective client and their REP.
True or false - In general, Alberta residential real estate contracts use conditions
precedent. - Answer-True. This mean that a condition must be waived in writing before
it's expiry date in order for it to be removed as an impediment to the transaction.
4 potential outcomes for any condition in a purchase contract. - Answer-Expiry, removal,
non-removal, extension
Another way to refer to an unconditional sale - Answer-firm sale
