RECA EXAM STUDY QUESTIONS WITH
COMPLETE SOLUTIONS
Disclosure level 1 - ANSWER-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?
Which of the following is NOT a type of reaction associated with conflicts or disputes? -
ANSWER-Social Reaction
Which of the following is the provincial privacy legislation in Alberta? - ANSWER-
Personal Information Protection Act
In terms of the brokerage, what are the 3 components of leadership that relate to the
broker? - ANSWER-Authority, responsibility and accountability
Which of the following best describes a written acknowledgement? - ANSWER-It should
state that the consumer received and understands the written disclosure made by a real
estate professional
Which of the following types of authority allow an agent to act according to the usual
ways of performing an action as established by the profession? - ANSWER-Customary
authority
Which of the following responsibilities do real estate professionals owe customers? -
ANSWER-Only some general obligations
Others tell you that you have an ethical dilemma - ANSWER-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?
It continues without a time limit after real estate services are no longer provided -
ANSWER-Which of the following statements is correct regarding the length of time that
real estate professionals are obligated to keep client information confidential?
Any instruction that is reasonable and ordinary under the circumstances - ANSWER-
Which of the following describes what is meant by a lawful instruction?
Express Authority - ANSWER-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?
, Third Party - ANSWER-Which of the following describes the party that exists outside of
a representation relationship?
Functional Authority - ANSWER-Which of the following is NOT a type of authority an
agent may hold?
Real Estate Brokerages - ANSWER-Which of the following are the only entities
authorized to trade in real estate?
Property Management Services - ANSWER-Which of the following categories of
brokerage services involves numerous services that require the greatest level of
discretion or judgement?
Consideration always involves money - ANSWER-Which of the following does NOT
apply to consideration?
Property valuations rely on the most recent sales
Assessments are done for taxation as opposed to a sale
Assessments use a different process referred to as mass appraisal - ANSWER-All
Statements Apply
Which of the following indicators are used to calculate the Gross Domestic Product
(GDP)?
Imports
Consumer spending
Business spending
Net income from foreign residents - ANSWER-I, II, III
Stan, a real estate professional registered with McAgent Real Estate Brokerage has just
listed his commercial property for lease with his brokerage. Jim, another real estate
professional registered with the same brokerage tells Stan that he has a client
interested in leasing the property. What level of disclosure is required in this situation? -
ANSWER-Disclosure level 3
Mary, a real estate professional registered with ABC Real Estate Brokerage, has agreed
to purchase her neighbour's ranch. The seller of the property is not represented by a
real estate professional. What level of disclosure does Mary need to provide? -
ANSWER-Disclosure Level 2
Conditions must be waived for the contract to proceed, while a contract can still proceed
with unmet terms - ANSWER-What is the difference between a condition and a term in
a contract?
The contract must be in written form to be enforceable - ANSWER-Which of the
following is NOT an essential element of a contract?
COMPLETE SOLUTIONS
Disclosure level 1 - ANSWER-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?
Which of the following is NOT a type of reaction associated with conflicts or disputes? -
ANSWER-Social Reaction
Which of the following is the provincial privacy legislation in Alberta? - ANSWER-
Personal Information Protection Act
In terms of the brokerage, what are the 3 components of leadership that relate to the
broker? - ANSWER-Authority, responsibility and accountability
Which of the following best describes a written acknowledgement? - ANSWER-It should
state that the consumer received and understands the written disclosure made by a real
estate professional
Which of the following types of authority allow an agent to act according to the usual
ways of performing an action as established by the profession? - ANSWER-Customary
authority
Which of the following responsibilities do real estate professionals owe customers? -
ANSWER-Only some general obligations
Others tell you that you have an ethical dilemma - ANSWER-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?
It continues without a time limit after real estate services are no longer provided -
ANSWER-Which of the following statements is correct regarding the length of time that
real estate professionals are obligated to keep client information confidential?
Any instruction that is reasonable and ordinary under the circumstances - ANSWER-
Which of the following describes what is meant by a lawful instruction?
Express Authority - ANSWER-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?
, Third Party - ANSWER-Which of the following describes the party that exists outside of
a representation relationship?
Functional Authority - ANSWER-Which of the following is NOT a type of authority an
agent may hold?
Real Estate Brokerages - ANSWER-Which of the following are the only entities
authorized to trade in real estate?
Property Management Services - ANSWER-Which of the following categories of
brokerage services involves numerous services that require the greatest level of
discretion or judgement?
Consideration always involves money - ANSWER-Which of the following does NOT
apply to consideration?
Property valuations rely on the most recent sales
Assessments are done for taxation as opposed to a sale
Assessments use a different process referred to as mass appraisal - ANSWER-All
Statements Apply
Which of the following indicators are used to calculate the Gross Domestic Product
(GDP)?
Imports
Consumer spending
Business spending
Net income from foreign residents - ANSWER-I, II, III
Stan, a real estate professional registered with McAgent Real Estate Brokerage has just
listed his commercial property for lease with his brokerage. Jim, another real estate
professional registered with the same brokerage tells Stan that he has a client
interested in leasing the property. What level of disclosure is required in this situation? -
ANSWER-Disclosure level 3
Mary, a real estate professional registered with ABC Real Estate Brokerage, has agreed
to purchase her neighbour's ranch. The seller of the property is not represented by a
real estate professional. What level of disclosure does Mary need to provide? -
ANSWER-Disclosure Level 2
Conditions must be waived for the contract to proceed, while a contract can still proceed
with unmet terms - ANSWER-What is the difference between a condition and a term in
a contract?
The contract must be in written form to be enforceable - ANSWER-Which of the
following is NOT an essential element of a contract?
