Page 1 of 311
RECA RESIDENTIAL EXAM WITH UNIT 1 TO
UNIT 9 ACTUAL EAXM QUESTIONS WITH
VERIFIED ANSWERS
When is written disclosure needed? -- ANSWER--Whenever a REP receives or is about to
receive confidential information; including the consumer's real estate needs, motivation, or
financial ability.
4 things that must be included in written disclosure -- ANSWER--1. Whether the REP has
entered into a representation relationship with another party to the real estate transaction 2.
The service the REP will provide the consumer 3. Any conflicts of interest that may exist
between the consumer and the REP 4. Any additional facts or information that may influence
the consumer's decision to proceed with the real estate relationship.
Which guide must REPs practicing residential real estate must REPs provide to consumers
for relationship disclosures (the guide includes all information REPs must include in written
disclosures under the Rules) -- ANSWER--RECA's Consumer Relationship Guide
For needed when non-representation relationship is selected by consumer (then becoming a
customer) -- ANSWER--Customer acknowledgement form
Form needed when representation relationship is chosen by consumer (then becoming a
client) -- ANSWER--Written Service Agreement
Does RECA's consumer relationships guide, customer Acknowledgement forms and written
service agreements contain mandatory content? Can it be changed? -- ANSWER--Yes.
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Although these documents may be changed at the request of a consumer or tailored to the
needs of a brokerage (eg. logo added, broker information added), content, meaning and intent
must not be altered.
Representation relationships are NOT established by the following 4 actions -- ANSWER--1.
REP conveying documents or providing general information to consumers 2. REP using
certain terms to refer to consumers (eg client customer) 3. Consumers using certain terms to
refer to REP (eg. Real estate agent, lease agent, buyers agent) 4.Consumers paying
remuneration (ie commission, fees) to the REP's brokerage
5Ds of Role Clarity and Consistency (5 words) -- ANSWER--1. Discuss 2. Determine 3.
Document 4. Disclose 5. Do
Longer explanations of the 5Ds of Role Clarity and Consistency (sentences) -- ANSWER--1.
Discuss the Real estate relationship 2. Determine your representative capacity 3. Document
your representative capacity in writing 4. Disclose your representative capacity (ie. seller's
agent, buyer's agent, landlord's agent, or tenant's agent) 5. Do actions with your
representative capacity consistent with your established relationship
6 Benefits of Role Clarity and Consistency -- ANSWER--1. Meets Regulatory Requirements
2. Enhances professionalism 3. Prevents Unintended relationships 4. Clarifies responsibilities
to consumers 5. Clarifies services to consumers 6. Reduces disputes
3 fundamental principles of fiduciary duty. AKA the 3 principles that give rise to fiduciary
duties in a representation relationship: -- ANSWER--Trust and Confidence, Best Interests,
Loyalty
8 General Obligations of REPs -- ANSWER--Exercise Care and Skill, Act Honestly,
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Negotiate Favourable terms, Maintain Confidentiality, Disclose Information, Act in Person,
Obey Lawful Instructions, Perform Mandate
6 Points of Fiduciary Duties -- ANSWER--Provide Utmost Loyalty, Not make secret profits,
Handle Confident Information Properly, To Account, Avoid conflicts of interest, Disclose
conflicts of interest.
"To Account" meaning -- ANSWER--Real estate professionals must account for all money
and/or property belonging to the client. This duty compels a real estate professional to
safeguard all money, documents, property, and information entrusted to them that relate to
the client's transaction.
"arm's length transaction" meaning -- ANSWER--In real estate, an arm's length transaction is
when the buyer and seller each act in their own self-interest to try to get the best deal they
can.
4 common examples of deals that are not arm's length transactions -- ANSWER--Sales
between friends or family members
Sales between an employer and his or her employees
Sales between a parent company and one of its subsidiaries
Sales between a trust and its beneficiaries
2 options if REP cannot provide competent service to a client -- ANSWER--Be Supervised,
Refer
To determine if a REP has met the standard of care in a given situation, an objective review
of all facts is performed. 3 measures to determine if that has been met. -- ANSWER--
, Page 4 of 311
Professional Standards, Professional Norms and Practices, Expert Testimony
"Expert Testimony" Meaning -- ANSWER--Other real estate professionals, or experts, may
provide information as to the expectations of a reasonable and prudent real estate professional
and how they would have conducted themselves in similar circumstances.
9 points in "Meeting the Standard of Care" -- ANSWER--1. Know the Type of Consumer
Relationship 2. Act consistent with the relationship chosen 3. Know the Brokerage Service 4.
Know the brokerage Policies and procedures 5. Be Aware of Market and Practical Issues 6.
Make Reasonable Efforts to Confirm information 7. Exercise Due care when preparing
documents 8. Seek Advice when appropriate 9. Be a Lifelong learner
True or False - Making referrals is a fiduciary duty that REPs owe to clients -- ANSWER-
False
True or False - the standard of care for a REP in a particular set of circumstances is
determined subjectively -- ANSWER--False
"subjectively" meaning -- ANSWER--In a way that is based on personal feelings, tastes, or
opinions.
"Objectively" meaning -- ANSWER--in a way that is not influenced by personal feelings or
opinions.
Defined in the Rules, what does confidential information include (3 things in specific) --
ANSWER--Any information concerning the client including the client's financial or personal
situation, the client's real estate, and transactions involving the client.
RECA RESIDENTIAL EXAM WITH UNIT 1 TO
UNIT 9 ACTUAL EAXM QUESTIONS WITH
VERIFIED ANSWERS
When is written disclosure needed? -- ANSWER--Whenever a REP receives or is about to
receive confidential information; including the consumer's real estate needs, motivation, or
financial ability.
4 things that must be included in written disclosure -- ANSWER--1. Whether the REP has
entered into a representation relationship with another party to the real estate transaction 2.
The service the REP will provide the consumer 3. Any conflicts of interest that may exist
between the consumer and the REP 4. Any additional facts or information that may influence
the consumer's decision to proceed with the real estate relationship.
Which guide must REPs practicing residential real estate must REPs provide to consumers
for relationship disclosures (the guide includes all information REPs must include in written
disclosures under the Rules) -- ANSWER--RECA's Consumer Relationship Guide
For needed when non-representation relationship is selected by consumer (then becoming a
customer) -- ANSWER--Customer acknowledgement form
Form needed when representation relationship is chosen by consumer (then becoming a
client) -- ANSWER--Written Service Agreement
Does RECA's consumer relationships guide, customer Acknowledgement forms and written
service agreements contain mandatory content? Can it be changed? -- ANSWER--Yes.
, Page 2 of 311
Although these documents may be changed at the request of a consumer or tailored to the
needs of a brokerage (eg. logo added, broker information added), content, meaning and intent
must not be altered.
Representation relationships are NOT established by the following 4 actions -- ANSWER--1.
REP conveying documents or providing general information to consumers 2. REP using
certain terms to refer to consumers (eg client customer) 3. Consumers using certain terms to
refer to REP (eg. Real estate agent, lease agent, buyers agent) 4.Consumers paying
remuneration (ie commission, fees) to the REP's brokerage
5Ds of Role Clarity and Consistency (5 words) -- ANSWER--1. Discuss 2. Determine 3.
Document 4. Disclose 5. Do
Longer explanations of the 5Ds of Role Clarity and Consistency (sentences) -- ANSWER--1.
Discuss the Real estate relationship 2. Determine your representative capacity 3. Document
your representative capacity in writing 4. Disclose your representative capacity (ie. seller's
agent, buyer's agent, landlord's agent, or tenant's agent) 5. Do actions with your
representative capacity consistent with your established relationship
6 Benefits of Role Clarity and Consistency -- ANSWER--1. Meets Regulatory Requirements
2. Enhances professionalism 3. Prevents Unintended relationships 4. Clarifies responsibilities
to consumers 5. Clarifies services to consumers 6. Reduces disputes
3 fundamental principles of fiduciary duty. AKA the 3 principles that give rise to fiduciary
duties in a representation relationship: -- ANSWER--Trust and Confidence, Best Interests,
Loyalty
8 General Obligations of REPs -- ANSWER--Exercise Care and Skill, Act Honestly,
, Page 3 of 311
Negotiate Favourable terms, Maintain Confidentiality, Disclose Information, Act in Person,
Obey Lawful Instructions, Perform Mandate
6 Points of Fiduciary Duties -- ANSWER--Provide Utmost Loyalty, Not make secret profits,
Handle Confident Information Properly, To Account, Avoid conflicts of interest, Disclose
conflicts of interest.
"To Account" meaning -- ANSWER--Real estate professionals must account for all money
and/or property belonging to the client. This duty compels a real estate professional to
safeguard all money, documents, property, and information entrusted to them that relate to
the client's transaction.
"arm's length transaction" meaning -- ANSWER--In real estate, an arm's length transaction is
when the buyer and seller each act in their own self-interest to try to get the best deal they
can.
4 common examples of deals that are not arm's length transactions -- ANSWER--Sales
between friends or family members
Sales between an employer and his or her employees
Sales between a parent company and one of its subsidiaries
Sales between a trust and its beneficiaries
2 options if REP cannot provide competent service to a client -- ANSWER--Be Supervised,
Refer
To determine if a REP has met the standard of care in a given situation, an objective review
of all facts is performed. 3 measures to determine if that has been met. -- ANSWER--
, Page 4 of 311
Professional Standards, Professional Norms and Practices, Expert Testimony
"Expert Testimony" Meaning -- ANSWER--Other real estate professionals, or experts, may
provide information as to the expectations of a reasonable and prudent real estate professional
and how they would have conducted themselves in similar circumstances.
9 points in "Meeting the Standard of Care" -- ANSWER--1. Know the Type of Consumer
Relationship 2. Act consistent with the relationship chosen 3. Know the Brokerage Service 4.
Know the brokerage Policies and procedures 5. Be Aware of Market and Practical Issues 6.
Make Reasonable Efforts to Confirm information 7. Exercise Due care when preparing
documents 8. Seek Advice when appropriate 9. Be a Lifelong learner
True or False - Making referrals is a fiduciary duty that REPs owe to clients -- ANSWER-
False
True or False - the standard of care for a REP in a particular set of circumstances is
determined subjectively -- ANSWER--False
"subjectively" meaning -- ANSWER--In a way that is based on personal feelings, tastes, or
opinions.
"Objectively" meaning -- ANSWER--in a way that is not influenced by personal feelings or
opinions.
Defined in the Rules, what does confidential information include (3 things in specific) --
ANSWER--Any information concerning the client including the client's financial or personal
situation, the client's real estate, and transactions involving the client.
