RECA QUIZ REVIEW QUESTIONS WITH
CORRECT ANSWERS
Which of the following describes a lawful revocation?
A) It occurs when either the principal or agent terminates the representation relationship
even though both parties have fulfilled their responsibilities
B) It occurs when either the principal or agent fails to fulfil their responsibilities to the
other party who terminates the representation relationship as a result
C) It occurs when either the principal or agent provide the other party with written notice
that they have decided to terminate the representation relationship
D) It occurs when either the principal or agent terminates the representation relationship
because they are no longer authorized by RECA to trade in real estate - Answer-B
Which of the following types of authority allow an agent to undertake any activities
needed to carry out an express authority?
A) Legal authority
B) Implied authority
C) Customary authority
D) Functional authority - Answer-B
Which of the following is NOT a capacity for which an agent must have express
authority from a principal in order to act?
A) Capacity to contract
B) Capacity to delegate
C) Capacity to incur expenses
D) Capacity to account - Answer-D
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?
A) Express authority
B) Implied authority
C) Customary authority
D) Functional authority - Answer-A
Sets the minimum standards of conduct between a landlord and tenant for the leasing of
a residential dwelling - Answer-Residential Tenancies Act
Applies to individuals who own a mobile home and lease the mobile home site from a
landlord - Answer-Mobile Home Sites Tenancies Act
Provides the legal framework for member-based incorporated business organizations -
Answer-Cooperatives Act
,Provides for the creation and registration of security interests by a lender against the
personal property of a debtor - Answer-Personal Proper Security Act
Protects consumers from unfair business practices before, during or after a consumer
transaction - Answer-Consumer Protection Act
Promotes the protection, enhancement and wise use of the environment - Answer-
Environmental Protection and Enhancement Act
Limits the amount of land that can be bought by non-Canadians or foreign controlled
corporations - Answer-Agricultural and Recreational Land Ownership Act
Establishes the requirements for the creation and operation of a specific type of real
property ownership - Answer-Condominium Property Act
Amy, a real estate professional, is working with an individual who wants to sell his
residential property which is currently being rented. Which legislation governs the
relationship between the seller and the individual leasing the premises? - Answer-
Residential Tenancies Act
What is the general intent of a security agreement? - Answer-Allows for the registration
of a security interest against an individual's personal property
Which of the following statements is correct regarding housing cooperatives in Alberta?
a) Non-profit continuing housing cooperatives allow its members to own their units
b) Non-profit home ownership cooperatives allow for its members to own their units
c) Members occupy a non-profit home ownership cooperative under a tenancy
agreement
d) Certain encumbrances are registered on title for non-profit home ownership
cooperatives - Answer-B and D
Why should real estate professionals be aware of Alberta's Environmental Protection
and Enhancement Act in terms of their practice?
A) The statute is part of the growing interest in environmentally friendly practices and
procedures
B) The statute requires property owners to examine ways to conserve energy and
recycle waste
C) The basic audit level is becoming more prevalent in commercial and industrial
transactions
D) The consumer interest in environmentally-friendly residential properties has been
increasing - Answer-C
Which of the following is included in the rights of real property ownership?
A) The right to use, lease and subdivide the land
B) The right to lease, sell or give away the land
C) The right to give away, lend or develop the land
,D) The right to lease, sell and excavate for minerals
Next Question - Answer-B
What is meant by the term 'real property'?
A) Raw or otherwise unimproved land
B) Raw land plus fixed or permanent improvements
C) Tangible attributes of the land plus rights of ownership
D) Attributes of the land and buildings situated on the land - Answer-C
The assessment of property for taxation purposes is carried out under which provincial
statute?
A) The Property Assessment Act
B) The Condominium Property Act
C) The Municipal Government Act
D) The Real Estate Assessment Act
Next Question - Answer-C
What is meant by the term 'illegal suite'?
A) The suite was deemed illegal by the courts
B) The suite met Land Use requirements at one time
C) The suite that does not meet current Land Use requirements
D) The suite met Land Use requirements but lacks building permits - Answer-C
Under the Residential Tenancies Act, when can a landlord enter a tenant's leased
premises without consent or notice?
A) When a fire alarm has sounded and the fire department requires access to all of the
units to check for the source of the fire
B) When the landlord has not seen the tenant or received rent in 2 months and
newspapers are collecting at the front door of the premises
C) When water is leaking into a unit and the landlord has to determine where the leak
originates
D) All of the statements apply - Answer-D
What is meant by the term 'current' Real Property Report?
A) A Real Property Report that is maintained in the land surveyor's database for 7 years
B) A Real Property Report that has been created within the past 12 months
C) An existing Real Property Report plus a seller's Affidavit that no further property
improvements have been made
D) A Real Property Report that reflects the same property detail today as on the date
the report was done - Answer-D
What is an encroachment?
A) An item that is built on an adjoining property
B) A right acquired by one party to use the land of another
C) A notice that someone is claiming an interest in the land
D) All of these are encroachments - Answer-A
, What is the significance of a Municipal Certificate of Compliance?
A) It confirms that the building location complies with the Municipal Land Use Bylaw
B) It confirms that the location of the suite complies with the Municipal Land Use Bylaw
C) It confirms that the address of the property is correct according to municipal records
D) It confirms that the legal description of the property conforms to municipal standards
- Answer-A
An owner of a property has diverted groundwater without having received authority from
the Alberta Government. According to the Water Act, what requirement must be met for
the individual to be able to divert water?
A) A water permit is required
B) A water licence is required
C) A water easement is required
D) A water agreement is required - Answer-B
According to the Municipal Government Act, what is a 'mill rate'?
A) The amount of assessed value paid by commercial mills
B) The amount per thousand dollars of assessed value of property
C) The percentage of property taxes in a particular municipality
D) The percentage of property taxes as part of municipal revenues - Answer-B
Which of the following types of Condominium Plans have units that are parcels of land
with boundaries defined by floors, walls and ceilings? - Answer-Barely Blended
Condominium Plans
Which of the following types of Condominium Plans often includes a common property
unit? - Answer-Barely Blended Condominium Plans
On which of the following condominium documents are instruments registered that
affect either the common property or the condominium corporation?
A) Condominium Plan
B) Certificate of Title
C) Condominium Additional Plan Sheet
D) Certificate of Insurance - Answer-C
Real estate transactions involving units in which type of condominium require a Real
Property Report (RPR)? - Answer-Bare Land Condominium
Which of the following statements defines the purpose of unit factors?
a) Sets unit responsibility for common area expenses
b) Defines the voting rights of the unit owner
c) Determines the monthly contribution for the unit
d) Sets the value of the unit for property tax purposes - Answer-a, b, c
CORRECT ANSWERS
Which of the following describes a lawful revocation?
A) It occurs when either the principal or agent terminates the representation relationship
even though both parties have fulfilled their responsibilities
B) It occurs when either the principal or agent fails to fulfil their responsibilities to the
other party who terminates the representation relationship as a result
C) It occurs when either the principal or agent provide the other party with written notice
that they have decided to terminate the representation relationship
D) It occurs when either the principal or agent terminates the representation relationship
because they are no longer authorized by RECA to trade in real estate - Answer-B
Which of the following types of authority allow an agent to undertake any activities
needed to carry out an express authority?
A) Legal authority
B) Implied authority
C) Customary authority
D) Functional authority - Answer-B
Which of the following is NOT a capacity for which an agent must have express
authority from a principal in order to act?
A) Capacity to contract
B) Capacity to delegate
C) Capacity to incur expenses
D) Capacity to account - Answer-D
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?
A) Express authority
B) Implied authority
C) Customary authority
D) Functional authority - Answer-A
Sets the minimum standards of conduct between a landlord and tenant for the leasing of
a residential dwelling - Answer-Residential Tenancies Act
Applies to individuals who own a mobile home and lease the mobile home site from a
landlord - Answer-Mobile Home Sites Tenancies Act
Provides the legal framework for member-based incorporated business organizations -
Answer-Cooperatives Act
,Provides for the creation and registration of security interests by a lender against the
personal property of a debtor - Answer-Personal Proper Security Act
Protects consumers from unfair business practices before, during or after a consumer
transaction - Answer-Consumer Protection Act
Promotes the protection, enhancement and wise use of the environment - Answer-
Environmental Protection and Enhancement Act
Limits the amount of land that can be bought by non-Canadians or foreign controlled
corporations - Answer-Agricultural and Recreational Land Ownership Act
Establishes the requirements for the creation and operation of a specific type of real
property ownership - Answer-Condominium Property Act
Amy, a real estate professional, is working with an individual who wants to sell his
residential property which is currently being rented. Which legislation governs the
relationship between the seller and the individual leasing the premises? - Answer-
Residential Tenancies Act
What is the general intent of a security agreement? - Answer-Allows for the registration
of a security interest against an individual's personal property
Which of the following statements is correct regarding housing cooperatives in Alberta?
a) Non-profit continuing housing cooperatives allow its members to own their units
b) Non-profit home ownership cooperatives allow for its members to own their units
c) Members occupy a non-profit home ownership cooperative under a tenancy
agreement
d) Certain encumbrances are registered on title for non-profit home ownership
cooperatives - Answer-B and D
Why should real estate professionals be aware of Alberta's Environmental Protection
and Enhancement Act in terms of their practice?
A) The statute is part of the growing interest in environmentally friendly practices and
procedures
B) The statute requires property owners to examine ways to conserve energy and
recycle waste
C) The basic audit level is becoming more prevalent in commercial and industrial
transactions
D) The consumer interest in environmentally-friendly residential properties has been
increasing - Answer-C
Which of the following is included in the rights of real property ownership?
A) The right to use, lease and subdivide the land
B) The right to lease, sell or give away the land
C) The right to give away, lend or develop the land
,D) The right to lease, sell and excavate for minerals
Next Question - Answer-B
What is meant by the term 'real property'?
A) Raw or otherwise unimproved land
B) Raw land plus fixed or permanent improvements
C) Tangible attributes of the land plus rights of ownership
D) Attributes of the land and buildings situated on the land - Answer-C
The assessment of property for taxation purposes is carried out under which provincial
statute?
A) The Property Assessment Act
B) The Condominium Property Act
C) The Municipal Government Act
D) The Real Estate Assessment Act
Next Question - Answer-C
What is meant by the term 'illegal suite'?
A) The suite was deemed illegal by the courts
B) The suite met Land Use requirements at one time
C) The suite that does not meet current Land Use requirements
D) The suite met Land Use requirements but lacks building permits - Answer-C
Under the Residential Tenancies Act, when can a landlord enter a tenant's leased
premises without consent or notice?
A) When a fire alarm has sounded and the fire department requires access to all of the
units to check for the source of the fire
B) When the landlord has not seen the tenant or received rent in 2 months and
newspapers are collecting at the front door of the premises
C) When water is leaking into a unit and the landlord has to determine where the leak
originates
D) All of the statements apply - Answer-D
What is meant by the term 'current' Real Property Report?
A) A Real Property Report that is maintained in the land surveyor's database for 7 years
B) A Real Property Report that has been created within the past 12 months
C) An existing Real Property Report plus a seller's Affidavit that no further property
improvements have been made
D) A Real Property Report that reflects the same property detail today as on the date
the report was done - Answer-D
What is an encroachment?
A) An item that is built on an adjoining property
B) A right acquired by one party to use the land of another
C) A notice that someone is claiming an interest in the land
D) All of these are encroachments - Answer-A
, What is the significance of a Municipal Certificate of Compliance?
A) It confirms that the building location complies with the Municipal Land Use Bylaw
B) It confirms that the location of the suite complies with the Municipal Land Use Bylaw
C) It confirms that the address of the property is correct according to municipal records
D) It confirms that the legal description of the property conforms to municipal standards
- Answer-A
An owner of a property has diverted groundwater without having received authority from
the Alberta Government. According to the Water Act, what requirement must be met for
the individual to be able to divert water?
A) A water permit is required
B) A water licence is required
C) A water easement is required
D) A water agreement is required - Answer-B
According to the Municipal Government Act, what is a 'mill rate'?
A) The amount of assessed value paid by commercial mills
B) The amount per thousand dollars of assessed value of property
C) The percentage of property taxes in a particular municipality
D) The percentage of property taxes as part of municipal revenues - Answer-B
Which of the following types of Condominium Plans have units that are parcels of land
with boundaries defined by floors, walls and ceilings? - Answer-Barely Blended
Condominium Plans
Which of the following types of Condominium Plans often includes a common property
unit? - Answer-Barely Blended Condominium Plans
On which of the following condominium documents are instruments registered that
affect either the common property or the condominium corporation?
A) Condominium Plan
B) Certificate of Title
C) Condominium Additional Plan Sheet
D) Certificate of Insurance - Answer-C
Real estate transactions involving units in which type of condominium require a Real
Property Report (RPR)? - Answer-Bare Land Condominium
Which of the following statements defines the purpose of unit factors?
a) Sets unit responsibility for common area expenses
b) Defines the voting rights of the unit owner
c) Determines the monthly contribution for the unit
d) Sets the value of the unit for property tax purposes - Answer-a, b, c
