RECA EXAM STUDY QUESTIONS WITH
CORRECT ANSWERS 2026
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? - CORRECT ANSWER -Disclosure level 1
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? - CORRECT ANSWER -Others tell you that you have an ethical dilemma
Which of the following statements is correct regarding the length of time that real estate
professionals are obligated to keep client information confidential? - CORRECT ANSWER -It
continues without a time limit after real estate services are no longer provided
Which of the following describes what is meant by a lawful instruction? - CORRECT ANSWER -
Any instruction that is reasonable and ordinary under the circumstances
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? - CORRECT ANSWER -Express Authority
Which of the following describes the party that exists outside of a representation relationship? -
CORRECT ANSWER -Third Party
Which of the following is NOT a type of authority an agent may hold? - CORRECT ANSWER -
Functional Authority
Which of the following are the only entities authorized to trade in real estate? - CORRECT
ANSWER -Real Estate Brokerages
, Which of the following categories of brokerage services involves numerous services that require
the greatest level of discretion or judgement? - CORRECT ANSWER -Property Management
Services
Which of the following does NOT apply to consideration? - CORRECT ANSWER -Consideration
always involves money
What is the difference between a condition and a term in a contract? - CORRECT ANSWER -
Conditions must be waived for the contract to proceed, while a contract can still proceed with
unmet terms
Which of the following is NOT an essential element of a contract? - CORRECT ANSWER -The
contract must be in written form to be enforceable
The Ogami's have just completed their first English language course. They want to start a family
business and take out a mortgage on their small townhouse to get funds for the business.
However the business fails and they must repay the mortgage. Since the Ogami's struggle with
English, they did not understand the mortgage contract. If they challenge the contract, what
term describes the possible result? - CORRECT ANSWER -The contract may be voidable
Which of the following is NOT characteristic of value in relation to a commodity? - CORRECT
ANSWER -Pricing
Advisory Note - CORRECT ANSWER -Which of the following Professional Conduct Review
outcomes is issued as a practice guideline for a technical breach of the legislation?
B) Statements II, III and IV - CORRECT ANSWER -Which of the following statements is correct
regarding the Real Estate Act Rules?
The Rules may only be amended by the provincial legislature
CORRECT ANSWERS 2026
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? - CORRECT ANSWER -Disclosure level 1
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? - CORRECT ANSWER -Others tell you that you have an ethical dilemma
Which of the following statements is correct regarding the length of time that real estate
professionals are obligated to keep client information confidential? - CORRECT ANSWER -It
continues without a time limit after real estate services are no longer provided
Which of the following describes what is meant by a lawful instruction? - CORRECT ANSWER -
Any instruction that is reasonable and ordinary under the circumstances
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? - CORRECT ANSWER -Express Authority
Which of the following describes the party that exists outside of a representation relationship? -
CORRECT ANSWER -Third Party
Which of the following is NOT a type of authority an agent may hold? - CORRECT ANSWER -
Functional Authority
Which of the following are the only entities authorized to trade in real estate? - CORRECT
ANSWER -Real Estate Brokerages
, Which of the following categories of brokerage services involves numerous services that require
the greatest level of discretion or judgement? - CORRECT ANSWER -Property Management
Services
Which of the following does NOT apply to consideration? - CORRECT ANSWER -Consideration
always involves money
What is the difference between a condition and a term in a contract? - CORRECT ANSWER -
Conditions must be waived for the contract to proceed, while a contract can still proceed with
unmet terms
Which of the following is NOT an essential element of a contract? - CORRECT ANSWER -The
contract must be in written form to be enforceable
The Ogami's have just completed their first English language course. They want to start a family
business and take out a mortgage on their small townhouse to get funds for the business.
However the business fails and they must repay the mortgage. Since the Ogami's struggle with
English, they did not understand the mortgage contract. If they challenge the contract, what
term describes the possible result? - CORRECT ANSWER -The contract may be voidable
Which of the following is NOT characteristic of value in relation to a commodity? - CORRECT
ANSWER -Pricing
Advisory Note - CORRECT ANSWER -Which of the following Professional Conduct Review
outcomes is issued as a practice guideline for a technical breach of the legislation?
B) Statements II, III and IV - CORRECT ANSWER -Which of the following statements is correct
regarding the Real Estate Act Rules?
The Rules may only be amended by the provincial legislature
