RECA RESIDENTIAL EXAM UNIT 1-
g g g g
9 1000+ Q&A EXPERT VERIFIED WITH DETAILED
g g g g g g g
ANSWERS 2023/2024 GUARANTEED PASS
g g g
3gfundamentalgprinciplesgofgfiduciarygduty.gAKAgtheg3gprinciplesgthatggivegrisegtogfiduciarygduti
esgingagrepresentationgrelationship:
TrustgandgConfidence,gBestgInterests,gLoyalty
8 GeneralgObligationsgofgREPs
g g
ExercisegCaregandgSkill,gActgHonestly,gNegotiategFavourablegterms,gMaintaingConfidentiality,gg
DisclosegInformation,gActgingPerson,gObeygLawfulgInstructions,gPerformgMandate
6gPointsgofgFiduciarygDuties
ProvidegUtmostgLoyalty,gNotgmakegsecretgprofits,gHandlegConfidentgInformationgProperly,gTogg
Account,gAvoidgconflictsgofginterest,gDisclosegconflictsgofginterest.
"TogAccount"gmeaning
Realgestategprofessionalsgmustgaccountgforgallgmoneygand/orgpropertygbelonginggtogthegclient.
Thisgdutygcompelsgagrealgestategprofessionalgtogsafeguardgallgmoney,gdocuments,gproperty,gan
dinformationgentrustedgtogthemgthatgrelategtogthegclient'sgtransaction.g"
arm'sglengthgtransaction"gmeaning
Ingrealgestate,gangarm'sglengthgtransactiongisgwhengthegbuyergandgsellergeachgactgingtheirgowngsel
f-
interestgtogtrygtoggetgthegbestgdealgtheygcan.
4gcommongexamplesgofgdealsgthatgaregnotgarm'sglengthgtransactionsgS
alesgbetweengfriendsgorgfamilygmembers
Salesgbetweengangemployergandghisgorghergemployeesg Sal
esgbetweengagparentgcompanygandgonegofgitsgsubsidiariesgS
alesgbetweengagtrustgandgitsgbeneficiaries
2goptionsgifgREPgcannotgprovidegcompetentgservicegtogagclientg
BegSupervised,gRefer
TogdeterminegifgagREPghasgmetgthegstandardgofgcaregingaggivengsituation,gangobjectivegreviewgofg
allgfactsgisgperformed.g3gmeasuresgtogdeterminegifgthatghasgbeengmet.
ProfessionalgStandards,gProfessionalgNormsgandgPractices,gExpertgTestimon
yg"ExpertgTestimony"gMeaning
,Othergrealgestategprofessionals,gorgexperts,gmaygprovideginformationgasgtogthegexpectationsgofga
ggreasonablegandgprudentgrealgestategprofessionalgandghowgtheygwouldghavegconductedgthemselv
esggingsimilargcircumstances.
9gpointsging"MeetinggthegStandardgofgCare"
1.gKnowgthegTypegofgConsumergRelationshipg2.gActgconsistentgwithgthegrelationshipgchoseng3.gg
KnowgthegBrokeragegServiceg4.gKnowgthegbrokeragegPoliciesgandgproceduresg5.gBegAwaregofg
MarketgandgPracticalgIssuesg6.gMakegReasonablegEffortsgtogConfirmginformationg7.gExercisegDu
ecaregwhengpreparinggdocumentsg8.gSeekgAdvicegwhengappropriateg9.gBegagLifelongglearn
er
Whengisgwrittengdisclosuregneeded?
WhenevergagREPgreceivesgorgisgaboutgtogreceivegconfidentialginformation;gincludinggtheggconsum
er'sgrealgestategneeds,gmotivation,gorgfinancialgability.
4gthingsgthatgmustgbegincludedgingwrittengdisclosure
1.gWhethergthegREPghasgenteredgintogagrepresentationgrelationshipgwithganothergpartygtogthegreal
ggestategtransactiong2.gThegservicegthegREPgwillgprovidegthegconsumerg3.gAnygconflictsgofgintere
stggthatgmaygexistgbetweengthegconsumergandgthegREPg4.gAnygadditionalgfactsgorginformationgth
atggmayginfluencegthegconsumer'sgdecisiongtogproceedgwithgthegrealgestategrelationship.
WhichgguidegmustgREPsgpracticinggresidentialgrealgestategmustgREPsgprovidegtogconsumersgforgr
elationshipgdisclosuresg(thegguidegincludesgallginformationgREPsgmustgincludegingwrittengdisclos
uresgundergthegRules)
RECA'sgConsumergRelationshipgGuide
Forgneededgwhengnon-
representationgrelationshipgisgselectedgbygconsumerg(thengbecominggagcustomer)
Customergacknowledgementgform
Formgneededgwhengrepresentationgrelationshipgisgchosengbygconsumerg(thengbecominggagclient)g
WrittengServicegAgreement
DoesgRECA'sgconsumergrelationshipsgguide,gcustomergAcknowledgementgformsgandgwrittengser
vicegagreementsgcontaingmandatorygcontent?gCangitgbegchanged?
Yes.gAlthoughgthesegdocumentsgmaygbegchangedgatgthegrequestgofgagconsumergorgtailoredgtogthegg
needsgofgagbrokerageg(eg.glogogadded,gbrokerginformationgadded),gcontent,gmeaninggandgintentg
mustgnotgbegaltered.
RepresentationgrelationshipsgaregNOTgestablishedgbygthegfollowingg4gactions
1.gREPgconveyinggdocumentsgorgprovidingggeneralginformationgtogconsumersg2.gREPgusingggcert
aingtermsgtogrefergtogconsumersg(eggclientgcustomer)g3.gConsumersgusinggcertaingtermsgtogrefer
,togREPg(eg.gRealgestategagent,gleasegagent,gbuyersgagent)g4.Consumersgpayinggremunerationg(ieg
commission,gfees)gtogthegREP'sgbrokerage
5DsgofgRolegClaritygandgConsistencyg(5gwords)
1.gDiscussg2.gDetermineg3.gDocumentg4.gDiscloseg5.gDo
Longergexplanationsgofgtheg5DsgofgRolegClaritygandgConsistencyg(sentences)
1.gDiscussgthegRealgestategrelationshipg2.gDeterminegyourgrepresentativegcapacityg3.gDocumentg
yourgrepresentativegcapacitygingwritingg4.gDisclosegyourgrepresentativegcapacityg(ie.gseller'sgagent
,buyer'sgagent,glandlord'sgagent,gorgtenant'sgagent)g5.gDogactionsgwithgyourgrepresentativegcapacity
consistentgwithgyourgestablishedgrelationship
6 BenefitsgofgRolegClaritygandgConsistency
g g
1.gMeetsgRegulatorygRequirementsg2.gEnhancesgprofessionalismg3.gPreventsgUnintendedggrelatio
nshipsg4.gClarifiesgresponsibilitiesgtogconsumersg5.gClarifiesgservicesgtogconsumersg6.ggReducesgd
isputes
TruegorgFalseg-
MakinggreferralsgisgagfiduciarygdutygthatgREPsgowegtogclientsgFalse
g
TruegorgFalseg-
gthegstandardgofgcaregforgagREPgingagparticulargsetgofgcircumstancesgisgdeterminedgsubjectively
False
"subjectively"gmeaning
Ingagwaygthatgisgbasedgongpersonalgfeelings,gtastes,gorgopinions.g"Obj
ectively"gmeaning
ingagwaygthatgisgnotginfluencedgbygpersonalgfeelingsgorgopinions.
DefinedgingthegRules,gwhatgdoesgconfidentialginformationgincludeg(3gthingsgingspecific)
Anyginformationgconcerninggthegclientgincludinggthegclient'sgfinancialgorgpersonalgsituation,gthegg
client'sgrealgestate,gandgtransactionsginvolvinggthegclient.
Whatgdoesgcommercialgactivitygrefergto?
Anygtransaction,gact,gorgconductginvolvinggthegexchangegofggoodsgand/orgservices.
gIsgBuying/selling/leasinggconsideredgcommercialgactivity?
Yes,gthegpurchase,gsale,gorgleasinggofgrealgestategisgconsideredgagcommercialgactivity
IngAlbertagthegprotectiongofgindividuals'gpersonalginformationgduringgrealgestategtransactionsgisgre
gulatedgbygwhichgprivacyglegislationg(x2)
, PIPEDAg(ThegPersonalgInformationgProtectiongandgElectronicgDocumentgAct)gandgPIPAg(TheggP
ersonalgInformationgProtectiongAct)
IsgPIPEDAgagprovincialgorgagFederalglegislation?gF
ederal
DoesgPIPEDAglegislationgapplygtogAlberta?
YesgandgNo,gsincegAlbertaghasgPIPAg(whichgisgsubstantiallygsimilargtogPIPEDAgsogaccepted),gitgg
doesgnotgallgtogallgorganizationsginvolvedgingcommercialgactivities.
Whichg2gareasgdoesgPIPEDAglegislationgcontinuegtogapplygtogingAlbertag(andgprovincesgthatghave
gsetgupglegislationglikegPIPA)
PIPEDAgcontinuesgtogapplygtog1.gFederallygregulatedgbusinessesg(suchgasgbanks,gairlines,gandggtel
ecommunicationgcompanies.g2.gOrganizationsgconductinggbusinessg(involvinggpersongginformati
on)gthatgcrossesgprovincialgorgnationalgborders
10gPrivacygPrinciplesgingPractice
1.gAccountabilityg2.gIdentifyinggPurposesg3.gConsentg4.gLimitinggCollectiong5.gLimitinggUse,g
Disclosure,gandgRetentiong6.gAccuracyg7.gSafeguardsg8.gOpennessg9.gIndividualgAccessg10.ggCha
llenginggCompliance
3gtypesgofgconsentg(recognizedgbygPrivacyglegislation)gExp
ress,gimpliedgorgopt-out
CangRealgestategassistantsghiredgbygthegbrokeragegdogactivitiesginvolvinggthegpublic?
Yesg(butgnotgtasksgthatgwouldgrequiregbeinggauthorizedgtogtradegingrealgestate,gmainlygtoghelpgwit
hggadministrativegfunctionsgorggeneralgofficegdutiesgsupportinggthegday-to-
daygactivities.gIngsomegginstances,ginvolvegthegpublic
IfgagREPghiresgangassistantg(firstgmustghavegbroker'sgconsent)gcangthegtasksginvolvegthegpublic?g
No,gtheygcannotginvolvegthegpublic.gOtherwisegtheygneedgtogbegemployedgbygthegbrokerage
3gThingsgthatgneedgtogbegimplementedgifgusinggagvirtualgassistantgingordergtogprotectgclientginform
ation
1.gConfirmgthegvirtualgassistantgprivacygpoliciesgandgproceduresgaregcomparablegtogthatgofgthe
brokerageg2.gNotifygclientsgwhosegpersonalginformationgisgbeinggcollectedgorgtransferredgwhe
n
notification gwasgnotgincludedgingthegrealgestategrelationshipgform.gNotificationgshouldgbeginggwrit
inggandgdocumentsgforgbrokeragegrecordgkeeping.g3.gAdvisegclientsgwhosegpersonalgginformation
gisgcollectedgorgtransferred,ghowgthegrealgestategbrokerage'sgprivacygpoliciesgandggproceduresgma
ygbegobtainedgingwriting.gAlsogletgthegclientgknowgwhogcanganswergquestionsgaboutggthegcollectio
n,guse,gandgdisclosuregofgtheirgpersonalginformationgwhenghandledgbygthegvirtualggassistant.
g g g g
9 1000+ Q&A EXPERT VERIFIED WITH DETAILED
g g g g g g g
ANSWERS 2023/2024 GUARANTEED PASS
g g g
3gfundamentalgprinciplesgofgfiduciarygduty.gAKAgtheg3gprinciplesgthatggivegrisegtogfiduciarygduti
esgingagrepresentationgrelationship:
TrustgandgConfidence,gBestgInterests,gLoyalty
8 GeneralgObligationsgofgREPs
g g
ExercisegCaregandgSkill,gActgHonestly,gNegotiategFavourablegterms,gMaintaingConfidentiality,gg
DisclosegInformation,gActgingPerson,gObeygLawfulgInstructions,gPerformgMandate
6gPointsgofgFiduciarygDuties
ProvidegUtmostgLoyalty,gNotgmakegsecretgprofits,gHandlegConfidentgInformationgProperly,gTogg
Account,gAvoidgconflictsgofginterest,gDisclosegconflictsgofginterest.
"TogAccount"gmeaning
Realgestategprofessionalsgmustgaccountgforgallgmoneygand/orgpropertygbelonginggtogthegclient.
Thisgdutygcompelsgagrealgestategprofessionalgtogsafeguardgallgmoney,gdocuments,gproperty,gan
dinformationgentrustedgtogthemgthatgrelategtogthegclient'sgtransaction.g"
arm'sglengthgtransaction"gmeaning
Ingrealgestate,gangarm'sglengthgtransactiongisgwhengthegbuyergandgsellergeachgactgingtheirgowngsel
f-
interestgtogtrygtoggetgthegbestgdealgtheygcan.
4gcommongexamplesgofgdealsgthatgaregnotgarm'sglengthgtransactionsgS
alesgbetweengfriendsgorgfamilygmembers
Salesgbetweengangemployergandghisgorghergemployeesg Sal
esgbetweengagparentgcompanygandgonegofgitsgsubsidiariesgS
alesgbetweengagtrustgandgitsgbeneficiaries
2goptionsgifgREPgcannotgprovidegcompetentgservicegtogagclientg
BegSupervised,gRefer
TogdeterminegifgagREPghasgmetgthegstandardgofgcaregingaggivengsituation,gangobjectivegreviewgofg
allgfactsgisgperformed.g3gmeasuresgtogdeterminegifgthatghasgbeengmet.
ProfessionalgStandards,gProfessionalgNormsgandgPractices,gExpertgTestimon
yg"ExpertgTestimony"gMeaning
,Othergrealgestategprofessionals,gorgexperts,gmaygprovideginformationgasgtogthegexpectationsgofga
ggreasonablegandgprudentgrealgestategprofessionalgandghowgtheygwouldghavegconductedgthemselv
esggingsimilargcircumstances.
9gpointsging"MeetinggthegStandardgofgCare"
1.gKnowgthegTypegofgConsumergRelationshipg2.gActgconsistentgwithgthegrelationshipgchoseng3.gg
KnowgthegBrokeragegServiceg4.gKnowgthegbrokeragegPoliciesgandgproceduresg5.gBegAwaregofg
MarketgandgPracticalgIssuesg6.gMakegReasonablegEffortsgtogConfirmginformationg7.gExercisegDu
ecaregwhengpreparinggdocumentsg8.gSeekgAdvicegwhengappropriateg9.gBegagLifelongglearn
er
Whengisgwrittengdisclosuregneeded?
WhenevergagREPgreceivesgorgisgaboutgtogreceivegconfidentialginformation;gincludinggtheggconsum
er'sgrealgestategneeds,gmotivation,gorgfinancialgability.
4gthingsgthatgmustgbegincludedgingwrittengdisclosure
1.gWhethergthegREPghasgenteredgintogagrepresentationgrelationshipgwithganothergpartygtogthegreal
ggestategtransactiong2.gThegservicegthegREPgwillgprovidegthegconsumerg3.gAnygconflictsgofgintere
stggthatgmaygexistgbetweengthegconsumergandgthegREPg4.gAnygadditionalgfactsgorginformationgth
atggmayginfluencegthegconsumer'sgdecisiongtogproceedgwithgthegrealgestategrelationship.
WhichgguidegmustgREPsgpracticinggresidentialgrealgestategmustgREPsgprovidegtogconsumersgforgr
elationshipgdisclosuresg(thegguidegincludesgallginformationgREPsgmustgincludegingwrittengdisclos
uresgundergthegRules)
RECA'sgConsumergRelationshipgGuide
Forgneededgwhengnon-
representationgrelationshipgisgselectedgbygconsumerg(thengbecominggagcustomer)
Customergacknowledgementgform
Formgneededgwhengrepresentationgrelationshipgisgchosengbygconsumerg(thengbecominggagclient)g
WrittengServicegAgreement
DoesgRECA'sgconsumergrelationshipsgguide,gcustomergAcknowledgementgformsgandgwrittengser
vicegagreementsgcontaingmandatorygcontent?gCangitgbegchanged?
Yes.gAlthoughgthesegdocumentsgmaygbegchangedgatgthegrequestgofgagconsumergorgtailoredgtogthegg
needsgofgagbrokerageg(eg.glogogadded,gbrokerginformationgadded),gcontent,gmeaninggandgintentg
mustgnotgbegaltered.
RepresentationgrelationshipsgaregNOTgestablishedgbygthegfollowingg4gactions
1.gREPgconveyinggdocumentsgorgprovidingggeneralginformationgtogconsumersg2.gREPgusingggcert
aingtermsgtogrefergtogconsumersg(eggclientgcustomer)g3.gConsumersgusinggcertaingtermsgtogrefer
,togREPg(eg.gRealgestategagent,gleasegagent,gbuyersgagent)g4.Consumersgpayinggremunerationg(ieg
commission,gfees)gtogthegREP'sgbrokerage
5DsgofgRolegClaritygandgConsistencyg(5gwords)
1.gDiscussg2.gDetermineg3.gDocumentg4.gDiscloseg5.gDo
Longergexplanationsgofgtheg5DsgofgRolegClaritygandgConsistencyg(sentences)
1.gDiscussgthegRealgestategrelationshipg2.gDeterminegyourgrepresentativegcapacityg3.gDocumentg
yourgrepresentativegcapacitygingwritingg4.gDisclosegyourgrepresentativegcapacityg(ie.gseller'sgagent
,buyer'sgagent,glandlord'sgagent,gorgtenant'sgagent)g5.gDogactionsgwithgyourgrepresentativegcapacity
consistentgwithgyourgestablishedgrelationship
6 BenefitsgofgRolegClaritygandgConsistency
g g
1.gMeetsgRegulatorygRequirementsg2.gEnhancesgprofessionalismg3.gPreventsgUnintendedggrelatio
nshipsg4.gClarifiesgresponsibilitiesgtogconsumersg5.gClarifiesgservicesgtogconsumersg6.ggReducesgd
isputes
TruegorgFalseg-
MakinggreferralsgisgagfiduciarygdutygthatgREPsgowegtogclientsgFalse
g
TruegorgFalseg-
gthegstandardgofgcaregforgagREPgingagparticulargsetgofgcircumstancesgisgdeterminedgsubjectively
False
"subjectively"gmeaning
Ingagwaygthatgisgbasedgongpersonalgfeelings,gtastes,gorgopinions.g"Obj
ectively"gmeaning
ingagwaygthatgisgnotginfluencedgbygpersonalgfeelingsgorgopinions.
DefinedgingthegRules,gwhatgdoesgconfidentialginformationgincludeg(3gthingsgingspecific)
Anyginformationgconcerninggthegclientgincludinggthegclient'sgfinancialgorgpersonalgsituation,gthegg
client'sgrealgestate,gandgtransactionsginvolvinggthegclient.
Whatgdoesgcommercialgactivitygrefergto?
Anygtransaction,gact,gorgconductginvolvinggthegexchangegofggoodsgand/orgservices.
gIsgBuying/selling/leasinggconsideredgcommercialgactivity?
Yes,gthegpurchase,gsale,gorgleasinggofgrealgestategisgconsideredgagcommercialgactivity
IngAlbertagthegprotectiongofgindividuals'gpersonalginformationgduringgrealgestategtransactionsgisgre
gulatedgbygwhichgprivacyglegislationg(x2)
, PIPEDAg(ThegPersonalgInformationgProtectiongandgElectronicgDocumentgAct)gandgPIPAg(TheggP
ersonalgInformationgProtectiongAct)
IsgPIPEDAgagprovincialgorgagFederalglegislation?gF
ederal
DoesgPIPEDAglegislationgapplygtogAlberta?
YesgandgNo,gsincegAlbertaghasgPIPAg(whichgisgsubstantiallygsimilargtogPIPEDAgsogaccepted),gitgg
doesgnotgallgtogallgorganizationsginvolvedgingcommercialgactivities.
Whichg2gareasgdoesgPIPEDAglegislationgcontinuegtogapplygtogingAlbertag(andgprovincesgthatghave
gsetgupglegislationglikegPIPA)
PIPEDAgcontinuesgtogapplygtog1.gFederallygregulatedgbusinessesg(suchgasgbanks,gairlines,gandggtel
ecommunicationgcompanies.g2.gOrganizationsgconductinggbusinessg(involvinggpersongginformati
on)gthatgcrossesgprovincialgorgnationalgborders
10gPrivacygPrinciplesgingPractice
1.gAccountabilityg2.gIdentifyinggPurposesg3.gConsentg4.gLimitinggCollectiong5.gLimitinggUse,g
Disclosure,gandgRetentiong6.gAccuracyg7.gSafeguardsg8.gOpennessg9.gIndividualgAccessg10.ggCha
llenginggCompliance
3gtypesgofgconsentg(recognizedgbygPrivacyglegislation)gExp
ress,gimpliedgorgopt-out
CangRealgestategassistantsghiredgbygthegbrokeragegdogactivitiesginvolvinggthegpublic?
Yesg(butgnotgtasksgthatgwouldgrequiregbeinggauthorizedgtogtradegingrealgestate,gmainlygtoghelpgwit
hggadministrativegfunctionsgorggeneralgofficegdutiesgsupportinggthegday-to-
daygactivities.gIngsomegginstances,ginvolvegthegpublic
IfgagREPghiresgangassistantg(firstgmustghavegbroker'sgconsent)gcangthegtasksginvolvegthegpublic?g
No,gtheygcannotginvolvegthegpublic.gOtherwisegtheygneedgtogbegemployedgbygthegbrokerage
3gThingsgthatgneedgtogbegimplementedgifgusinggagvirtualgassistantgingordergtogprotectgclientginform
ation
1.gConfirmgthegvirtualgassistantgprivacygpoliciesgandgproceduresgaregcomparablegtogthatgofgthe
brokerageg2.gNotifygclientsgwhosegpersonalginformationgisgbeinggcollectedgorgtransferredgwhe
n
notification gwasgnotgincludedgingthegrealgestategrelationshipgform.gNotificationgshouldgbeginggwrit
inggandgdocumentsgforgbrokeragegrecordgkeeping.g3.gAdvisegclientsgwhosegpersonalgginformation
gisgcollectedgorgtransferred,ghowgthegrealgestategbrokerage'sgprivacygpoliciesgandggproceduresgma
ygbegobtainedgingwriting.gAlsogletgthegclientgknowgwhogcanganswergquestionsgaboutggthegcollectio
n,guse,gandgdisclosuregofgtheirgpersonalginformationgwhenghandledgbygthegvirtualggassistant.
