RECA RESIDENTIAL EXAM/ RECA RESIDENTIAL EXAM PREPARATION PLUS RECA
RESIDENTIAL EXAM UNITS AND KEY CONCEPTS QUESTIONS AND DETAILED
ANSWERS| A+ GRADE ASSURED
Question 1
In a fiduciary representation relationship, which of the following best describes the professional's
primary obligations?
A) To ensure the brokerage makes a profit
B) To act with trust, confidence, loyalty, and in the client's best interests
C) To represent both the buyer and seller equally at all times
D) To only disclose information that the client allows them to share
E) To prioritize the customer's needs over the client's needs
Correct Answer: B) To act with trust, confidence, loyalty, and in the client's best interests
Rationale: Fiduciary duties are the highest standard of care in law. In Alberta, this means
placing the client’s interests above all others, including the professional’s own, and
maintaining strict confidentiality and loyalty.
Question 2
Which of the following is NOT one of the "5 Ds" of Role Clarity in Alberta real estate?
A) Discuss
B) Determine
C) Document
D) Delegate
E) Do
Correct Answer: D) Delegate
Rationale: The 5 Ds of Role Clarity are: Discuss, Determine, Document, Disclose, and Do.
These steps ensure that the consumer understands the nature of the relationship they are
entering into with the professional.
Question 3
When must a real estate professional disclose a conflict of interest to a consumer in writing?
A) Only after a purchase contract is signed
B) Only if the professional is related to the seller
C) As soon as the professional becomes aware of any facts that may influence the consumer’s
decision
D) Only if the brokerage manager requests it
E) Disclosure is never required to be in writing
Correct Answer: C) As soon as the professional becomes aware of any facts that may
influence the consumer’s decision
Rationale: Written disclosure is required for the nature of services, existing representation
with other parties, conflicts of interest, and any other material facts to ensure the consumer
can make an informed decision.
Question 4
A consumer chooses a non-representation relationship with a brokerage. Which form should the
, 2
professional use to clarify this relationship?
A) Written Service Agreement
B) Fiduciary Contract
C) Customer Acknowledgement Form
D) Exclusive Seller Representation Agreement
E) Power of Attorney
Correct Answer: C) Customer Acknowledgement Form
Rationale: A Customer Acknowledgement Form is used for non-representation relationships
(customers), while a Written Service Agreement is used when the consumer becomes a
client.
Question 5
Which legislation specifically governs how private organizations in Alberta use and disclose
personal information?
A) PIPEDA
B) Alberta Real Estate Act
C) PIPA
D) Alberta Building Code
E) Dower Act
Correct Answer: C) PIPA
Rationale: PIPA (Personal Information Protection Act) is Alberta's provincial legislation,
whereas PIPEDA is federal. PIPA governs the collection and use of personal data by private
sector organizations within the province.
Question 6
To be legally valid in Alberta, a Power of Attorney (POA) must meet which of the following
criteria?
A) The donor must be at least 21 years old
B) It must be signed by the donor and a witness and be dated
C) It remains effective after the donor's death
D) The donor must be mentally incapable at the time of signing
E) It must be recorded at the local police station
Correct Answer: B) It must be signed by the donor and a witness and be dated
Rationale: A POA must be written, dated, and signed by the donor (who must be at least 18
and mentally capable) and a witness. It terminates upon the death of the donor.
Question 7
Which type of Power of Attorney allows the attorney to make all decisions regarding financial
and legal affairs with no limits, except for health care and residency?
A) Special POA
B) Limited POA
RESIDENTIAL EXAM UNITS AND KEY CONCEPTS QUESTIONS AND DETAILED
ANSWERS| A+ GRADE ASSURED
Question 1
In a fiduciary representation relationship, which of the following best describes the professional's
primary obligations?
A) To ensure the brokerage makes a profit
B) To act with trust, confidence, loyalty, and in the client's best interests
C) To represent both the buyer and seller equally at all times
D) To only disclose information that the client allows them to share
E) To prioritize the customer's needs over the client's needs
Correct Answer: B) To act with trust, confidence, loyalty, and in the client's best interests
Rationale: Fiduciary duties are the highest standard of care in law. In Alberta, this means
placing the client’s interests above all others, including the professional’s own, and
maintaining strict confidentiality and loyalty.
Question 2
Which of the following is NOT one of the "5 Ds" of Role Clarity in Alberta real estate?
A) Discuss
B) Determine
C) Document
D) Delegate
E) Do
Correct Answer: D) Delegate
Rationale: The 5 Ds of Role Clarity are: Discuss, Determine, Document, Disclose, and Do.
These steps ensure that the consumer understands the nature of the relationship they are
entering into with the professional.
Question 3
When must a real estate professional disclose a conflict of interest to a consumer in writing?
A) Only after a purchase contract is signed
B) Only if the professional is related to the seller
C) As soon as the professional becomes aware of any facts that may influence the consumer’s
decision
D) Only if the brokerage manager requests it
E) Disclosure is never required to be in writing
Correct Answer: C) As soon as the professional becomes aware of any facts that may
influence the consumer’s decision
Rationale: Written disclosure is required for the nature of services, existing representation
with other parties, conflicts of interest, and any other material facts to ensure the consumer
can make an informed decision.
Question 4
A consumer chooses a non-representation relationship with a brokerage. Which form should the
, 2
professional use to clarify this relationship?
A) Written Service Agreement
B) Fiduciary Contract
C) Customer Acknowledgement Form
D) Exclusive Seller Representation Agreement
E) Power of Attorney
Correct Answer: C) Customer Acknowledgement Form
Rationale: A Customer Acknowledgement Form is used for non-representation relationships
(customers), while a Written Service Agreement is used when the consumer becomes a
client.
Question 5
Which legislation specifically governs how private organizations in Alberta use and disclose
personal information?
A) PIPEDA
B) Alberta Real Estate Act
C) PIPA
D) Alberta Building Code
E) Dower Act
Correct Answer: C) PIPA
Rationale: PIPA (Personal Information Protection Act) is Alberta's provincial legislation,
whereas PIPEDA is federal. PIPA governs the collection and use of personal data by private
sector organizations within the province.
Question 6
To be legally valid in Alberta, a Power of Attorney (POA) must meet which of the following
criteria?
A) The donor must be at least 21 years old
B) It must be signed by the donor and a witness and be dated
C) It remains effective after the donor's death
D) The donor must be mentally incapable at the time of signing
E) It must be recorded at the local police station
Correct Answer: B) It must be signed by the donor and a witness and be dated
Rationale: A POA must be written, dated, and signed by the donor (who must be at least 18
and mentally capable) and a witness. It terminates upon the death of the donor.
Question 7
Which type of Power of Attorney allows the attorney to make all decisions regarding financial
and legal affairs with no limits, except for health care and residency?
A) Special POA
B) Limited POA
