1 | Page
RECA fundamentals study guide
Questions and Correct Answers/ Latest
Update / Already Graded
Individual is expected to do the right thing cause it's the right thing to
do, regardless of outcome
Ans: duty-based ethics
Sells the optimal result for the greatest number of people
Ans: utalitarian ethics
Punishment for a technical breach
Ans: Advisory note
One or two potentially serious infraction would cause this punishment
Ans: Administrative penalty/ fine
,2 | Page
These two ways of creating a representation relationship should not
be done in real estate
Ans: Ratification- acting without authority or in excess of authority
Implication- advice outside of objective
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
Ans: By Estoppel
This type of representation relationship is created when someone
takes action to save a property or person from imminent danger/
damages
Ans: By operation of law
,3 | Page
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
Ans: Ethics
A set of beliefs held by an individual and founded on fundamental
principles of right and wrong. Ex. Religious
Ans: Morals
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)
Ans: Tort law
Max the real estate assurance fund may pay per claimant for
damages or losses to the services of a real estate professional
Ans: 35,000$
, 4 | Page
Compensate consumers who have received court judgement
against a real estate professional for fraud or breach of trust
Ans: Purpose of Real Estate Assurance Fund
To protect real estate professionals when they make a mistake
regarding their business
Ans: Real estate insurance exchange
REIX
Where moral development is based on individual reflection and
analysis of the issues ( level 3 stage 6)
Ans: Kohlbergs highest stage of moral development
The ability of purchasers to cancel their purchase contract with a
developer within 10 days
Ans: Right of Recission
RECA fundamentals study guide
Questions and Correct Answers/ Latest
Update / Already Graded
Individual is expected to do the right thing cause it's the right thing to
do, regardless of outcome
Ans: duty-based ethics
Sells the optimal result for the greatest number of people
Ans: utalitarian ethics
Punishment for a technical breach
Ans: Advisory note
One or two potentially serious infraction would cause this punishment
Ans: Administrative penalty/ fine
,2 | Page
These two ways of creating a representation relationship should not
be done in real estate
Ans: Ratification- acting without authority or in excess of authority
Implication- advice outside of objective
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
Ans: By Estoppel
This type of representation relationship is created when someone
takes action to save a property or person from imminent danger/
damages
Ans: By operation of law
,3 | Page
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
Ans: Ethics
A set of beliefs held by an individual and founded on fundamental
principles of right and wrong. Ex. Religious
Ans: Morals
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)
Ans: Tort law
Max the real estate assurance fund may pay per claimant for
damages or losses to the services of a real estate professional
Ans: 35,000$
, 4 | Page
Compensate consumers who have received court judgement
against a real estate professional for fraud or breach of trust
Ans: Purpose of Real Estate Assurance Fund
To protect real estate professionals when they make a mistake
regarding their business
Ans: Real estate insurance exchange
REIX
Where moral development is based on individual reflection and
analysis of the issues ( level 3 stage 6)
Ans: Kohlbergs highest stage of moral development
The ability of purchasers to cancel their purchase contract with a
developer within 10 days
Ans: Right of Recission
