RECA Fundamentals Study Guide Questions
with 100% Correct Answers
Duty-based ethics Correct Answer Individual is expected to do the right thing cause it's
the right thing to do, regardless of outcome
Utalitarian ethics Correct Answer Sells the optimal result for the greatest number of
people
Advisory note Correct Answer Punishment for a technical breach
Administrative penalty/ fine Correct Answer One or two potentially serious infraction
would cause this punishment
Ratification- acting without authority or in excess of authority
Implication- advice outside of objective Correct Answer These two ways of creating a
representation relationship should not be done in real estate
By Estoppel Correct Answer This representation relationship arises when a principal
acts in a way that leads a third party to believe an agent has been given authority when
in actuality the agent hasn't consented or even knows about it
By operation of law Correct Answer This type of representation relationship is created
when someone takes action to save a property or person from imminent danger/
damages
Ethics Correct Answer Voluntary set of rules and guiding principles an individual uses
as their moral compass. Standard of conduct adopted and practiced within a culture or
society li
Morals Correct Answer A set of beliefs held by an individual and founded on
fundamental principles of right and wrong. Ex. Religious
Tort law Correct Answer What area of law deals with civil wrong doings for which the
courts may grant a remedy. ( harm to a person or damage to property)
35,000$ Correct Answer Max the real estate assurance fund may pay per claimant for
damages or losses to the services of a real estate professional
Purpose of Real Estate Assurance Fund Correct Answer Compensate consumers who
have received court judgement against a real estate professional for fraud or breach of
trust
Real estate insurance exchange
,REIX Correct Answer To protect real estate professionals when they make a mistake
regarding their business
Kohlbergs highest stage of moral development Correct Answer Where moral
development is based on individual reflection and analysis of the issues ( level 3 stage
6)
Right of Recission Correct Answer The ability of purchasers to cancel their purchase
contract with a developer within 10 days
Condominium Correct Answer Ownership in common with others
CADS Correct Answer If someone forgets the condo management company name for
any reason where would they find it
General power of attorney Correct Answer Can make all decisions about finances or
legal affairs has no limit other then where they'll live or health care
Yes Correct Answer Will power or at tourney be on the title
Building permit Correct Answer Permit that applies to specific project that is an
improvement to the property
Development permit Correct Answer Permit that applies to overall use of the land
It was legal at time of development Correct Answer Non conforming suite means ?
Waterworks
Repair of roads
Ambulance Correct Answer Municipal special taxes are for
Business revitalization tax Correct Answer Taxes used in a business district to improve
beauty, parking, or promote
24 hrs Correct Answer Landlord may enter without consent but with notice after giving
how much notice
Assignment Correct Answer Tenant isn't returning to the property so all obligations and
rights go to the new tenant
Sublease Correct Answer Tenant will be returning to the property, and they're still liable
to the landlord
Condominium Property Act Correct Answer Condos are governed by the
, Agricultural and recreational land ownership act Correct Answer This act prevents non
Canadians from buying significant amounts of prime land
Personal information Correct Answer Refers to information that makes an individual
identifiable
FINTRAC Correct Answer Real Estate brokerages must report suspicious transactions
to which organization
Express
Implied
Opt-out Correct Answer Types of consent
Guardian,
Cause they're not entitled to make financial decisions regarding land Correct Answer
Makes decisions like healthcare, living arrangements, diet, dress. And they're not on
title search why?
Physical
Emotional
Cognitive Correct Answer Reactions associated with conflicts or disputes
Authority
Responsibility
Accountability Correct Answer In terms of brokerage what 3 components of leadership
relate to the broker
Negotiator Correct Answer Brokers who use VBRP typically have experience in which
role
Assumptions
Omissions - non act
Commissions- over act Correct Answer Frequent causes of conflicts and disputes
3500$
7000$ Correct Answer First claim with REIX
Second claim within 3 years if first
40 days Correct Answer How many days does broker have to reach resolution in VBRP
Do not collude
Do not discriminate
Do not mislead public through advertising Correct Answer 3 basic principles of
competition act
with 100% Correct Answers
Duty-based ethics Correct Answer Individual is expected to do the right thing cause it's
the right thing to do, regardless of outcome
Utalitarian ethics Correct Answer Sells the optimal result for the greatest number of
people
Advisory note Correct Answer Punishment for a technical breach
Administrative penalty/ fine Correct Answer One or two potentially serious infraction
would cause this punishment
Ratification- acting without authority or in excess of authority
Implication- advice outside of objective Correct Answer These two ways of creating a
representation relationship should not be done in real estate
By Estoppel Correct Answer This representation relationship arises when a principal
acts in a way that leads a third party to believe an agent has been given authority when
in actuality the agent hasn't consented or even knows about it
By operation of law Correct Answer This type of representation relationship is created
when someone takes action to save a property or person from imminent danger/
damages
Ethics Correct Answer Voluntary set of rules and guiding principles an individual uses
as their moral compass. Standard of conduct adopted and practiced within a culture or
society li
Morals Correct Answer A set of beliefs held by an individual and founded on
fundamental principles of right and wrong. Ex. Religious
Tort law Correct Answer What area of law deals with civil wrong doings for which the
courts may grant a remedy. ( harm to a person or damage to property)
35,000$ Correct Answer Max the real estate assurance fund may pay per claimant for
damages or losses to the services of a real estate professional
Purpose of Real Estate Assurance Fund Correct Answer Compensate consumers who
have received court judgement against a real estate professional for fraud or breach of
trust
Real estate insurance exchange
,REIX Correct Answer To protect real estate professionals when they make a mistake
regarding their business
Kohlbergs highest stage of moral development Correct Answer Where moral
development is based on individual reflection and analysis of the issues ( level 3 stage
6)
Right of Recission Correct Answer The ability of purchasers to cancel their purchase
contract with a developer within 10 days
Condominium Correct Answer Ownership in common with others
CADS Correct Answer If someone forgets the condo management company name for
any reason where would they find it
General power of attorney Correct Answer Can make all decisions about finances or
legal affairs has no limit other then where they'll live or health care
Yes Correct Answer Will power or at tourney be on the title
Building permit Correct Answer Permit that applies to specific project that is an
improvement to the property
Development permit Correct Answer Permit that applies to overall use of the land
It was legal at time of development Correct Answer Non conforming suite means ?
Waterworks
Repair of roads
Ambulance Correct Answer Municipal special taxes are for
Business revitalization tax Correct Answer Taxes used in a business district to improve
beauty, parking, or promote
24 hrs Correct Answer Landlord may enter without consent but with notice after giving
how much notice
Assignment Correct Answer Tenant isn't returning to the property so all obligations and
rights go to the new tenant
Sublease Correct Answer Tenant will be returning to the property, and they're still liable
to the landlord
Condominium Property Act Correct Answer Condos are governed by the
, Agricultural and recreational land ownership act Correct Answer This act prevents non
Canadians from buying significant amounts of prime land
Personal information Correct Answer Refers to information that makes an individual
identifiable
FINTRAC Correct Answer Real Estate brokerages must report suspicious transactions
to which organization
Express
Implied
Opt-out Correct Answer Types of consent
Guardian,
Cause they're not entitled to make financial decisions regarding land Correct Answer
Makes decisions like healthcare, living arrangements, diet, dress. And they're not on
title search why?
Physical
Emotional
Cognitive Correct Answer Reactions associated with conflicts or disputes
Authority
Responsibility
Accountability Correct Answer In terms of brokerage what 3 components of leadership
relate to the broker
Negotiator Correct Answer Brokers who use VBRP typically have experience in which
role
Assumptions
Omissions - non act
Commissions- over act Correct Answer Frequent causes of conflicts and disputes
3500$
7000$ Correct Answer First claim with REIX
Second claim within 3 years if first
40 days Correct Answer How many days does broker have to reach resolution in VBRP
Do not collude
Do not discriminate
Do not mislead public through advertising Correct Answer 3 basic principles of
competition act
