RECA Residential Unit 1, RECA Residential Unit 2, RECA Residential
Unit 3, RECA Residential Unit 4, RECA Residential Unit 5, RECA
Residential Unit 6, RECA Residential Unit 7, RECA Residential Unit 8,
RECA Residential Unit 9
3 fundamental principles of fiduciary duty. AKA the 3 principles that give rise to fiduciary duties
in a representation relationship: - correct answer Trust and Confidence, Best Interests, Loyalty
8 General Obligations of REPs - correct answer Exercise Care and Skill, Act Honestly, Negotiate
Favourable terms, Maintain Confidentiality, Disclose Information, Act in Person, Obey Lawful
Instructions, Perform Mandate
6 Points of Fiduciary Duties - correct answer Provide Utmost Loyalty, Not make secret profits,
Handle Confident Information Properly, To Account, Avoid conflicts of interest, Disclose
conflicts of interest.
"To Account" meaning - correct answer Real estate professionals must account for all money
and/or property belonging to the client. This duty compels a real estate professional to
safeguard all money, documents, property, and information entrusted to them that relate to
the client's transaction.
"arm's length transaction" meaning - correct answer In real estate, an arm's length transaction
is when the buyer and seller each act in their own self-interest to try to get the best deal they
can.
4 common examples of deals that are not arm's length transactions - correct answer Sales
between friends or family members
Sales between an employer and his or her employees
Sales between a parent company and one of its subsidiaries
Sales between a trust and its beneficiaries
2 options if REP cannot provide competent service to a client - correct answer Be Supervised,
Refer
To determine if a REP has met the standard of care in a given situation, an objective review of
all facts is performed. 3 measures to determine if that has been met. - correct answer
Professional Standards, Professional Norms and Practices, Expert Testimony
"Expert Testimony" Meaning - correct answer Other real estate professionals, or experts, may
provide information as to the expectations of a reasonable and prudent real estate professional
and how they would have conducted themselves in similar circumstances.
,9 points in "Meeting the Standard of Care" - correct answer 1. Know the Type of Consumer
Relationship 2. Act consistent with the relationship chosen 3. Know the Brokerage Service 4.
Know the brokerage Policies and procedures 5. Be Aware of Market and Practical Issues 6.
Make Reasonable Efforts to Confirm information 7. Exercise Due care when preparing
documents 8. Seek Advice when appropriate 9. Be a Lifelong learner
When is written disclosure needed? - correct answer Whenever a REP receives or is about to
receive confidential information; including the consumer's real estate needs, motivation, or
financial ability.
4 things that must be included in written disclosure - correct answer 1. Whether the REP has
entered into a representation relationship with another party to the real estate transaction 2.
The service the REP will provide the consumer 3. Any conflicts of interest that may exist
between the consumer and the REP 4. Any additional facts or information that may influence
the consumer's decision to proceed with the real estate relationship.
Which guide must REPs practicing residential real estate must REPs provide to consumers for
relationship disclosures (the guide includes all information REPs must include in written
disclosures under the Rules) - correct answer RECA's Consumer Relationship Guide
For needed when non-representation relationship is selected by consumer (then becoming a
customer) - correct answer Customer acknowledgement form
Form needed when representation relationship is chosen by consumer (then becoming a client)
- correct answer Written Service Agreement
Does RECA's consumer relationships guide, customer Acknowledgement forms and written
service agreements contain mandatory content? Can it be changed? - correct answer Yes.
Although these documents may be changed at the request of a consumer or tailored to the
needs of a brokerage (eg. logo added, broker information added), content, meaning and intent
must not be altered.
Representation relationships are NOT established by the following 4 actions - correct answer 1.
REP conveying documents or providing general information to consumers 2. REP using certain
terms to refer to consumers (eg client customer) 3. Consumers using certain terms to refer to
REP (eg. Real estate agent, lease agent, buyers agent) 4.Consumers paying remuneration (ie
commission, fees) to the REP's brokerage
5Ds of Role Clarity and Consistency (5 words) - correct answer 1. Discuss 2. Determine 3.
Document 4. Disclose 5. Do
Longer explanations of the 5Ds of Role Clarity and Consistency (sentences) - correct answer 1.
Discuss the Real estate relationship 2. Determine your representative capacity 3. Document
your representative capacity in writing 4. Disclose your representative capacity (ie. seller's
,agent, buyer's agent, landlord's agent, or tenant's agent) 5. Do actions with your representative
capacity consistent with your established relationship
6 Benefits of Role Clarity and Consistency - correct answer 1. Meets Regulatory Requirements
2. Enhances professionalism 3. Prevents Unintended relationships 4. Clarifies responsibilities to
consumers 5. Clarifies services to consumers 6. Reduces disputes
True or False - Making referrals is a fiduciary duty that REPs owe to clients - correct answer
False
True or False - the standard of care for a REP in a particular set of circumstances is determined
subjectively - correct answer False
"subjectively" meaning - correct answer In a way that is based on personal feelings, tastes, or
opinions.
"Objectively" meaning - correct answer in a way that is not influenced by personal feelings or
opinions.
Defined in the Rules, what does confidential information include (3 things in specific) - correct
answer Any information concerning the client including the client's financial or personal
situation, the client's real estate, and transactions involving the client.
What does commercial activity refer to? - correct answer Any transaction, act, or conduct
involving the exchange of goods and/or services.
Is Buying/selling/leasing considered commercial activity? - correct answer Yes, the purchase,
sale, or leasing of real estate is considered a commercial activity
In Alberta the protection of individuals' personal information during real estate transactions is
regulated by which privacy legislation (x2) - correct answer PIPEDA (The Personal Information
Protection and Electronic Document Act) and PIPA (The Personal Information Protection Act)
Is PIPEDA a provincial or a Federal legislation? - correct answer Federal
Does PIPEDA legislation apply to Alberta? - correct answer Yes and No, since Alberta has PIPA
(which is substantially similar to PIPEDA so accepted), it does not all to all organizations
involved in commercial activities.
Which 2 areas does PIPEDA legislation continue to apply to in Alberta (and provinces that have
set up legislation like PIPA) - correct answer PIPEDA continues to apply to 1. Federally regulated
businesses (such as banks, airlines, and telecommunication companies. 2. Organizations
conducting business (involving person information) that crosses provincial or national borders
10 Privacy Principles in Practice - correct answer 1. Accountability 2. Identifying Purposes 3.
Consent 4. Limiting Collection 5. Limiting Use, Disclosure, and Retention 6. Accuracy 7.
Safeguards 8. Openness 9. Individual Access 10. Challenging Compliance
, 3 types of consent (recognized by Privacy legislation) - correct answer Express, implied or opt-
out
Can Real estate assistants hired by the brokerage do activities involving the public? - correct
answer Yes (but not tasks that would require being authorized to trade in real estate, mainly to
help with administrative functions or general office duties supporting the day-to-day activities.
In some instances, involve the public
If a REP hires an assistant (first must have broker's consent) can the tasks involve the public? -
correct answer No, they cannot involve the public. Otherwise they need to be employed by the
brokerage
3 Things that need to be implemented if using a virtual assistant in order to protect client
information - correct answer 1. Confirm the virtual assistant privacy policies and procedures are
comparable to that of the brokerage 2. Notify clients whose personal information is being
collected or transferred when notification was not included in the real estate relationship form.
Notification should be in writing and documents for brokerage record keeping. 3. Advise clients
whose personal information is collected or transferred, how the real estate brokerage's privacy
policies and procedures may be obtained in writing. Also let the client know who can answer
questions about the collection, use, and disclosure of their personal information when handled
by the virtual assistant.
How can a REP possibly use a virtual assistant? - correct answer The REP, along with their client
can consent to modify the relationship agreement regarding the collection, use , and disclosure
of their personal information to indicate that 'a virtual assistant employed by the real estate
professional has that same consent'.
What does CASL stand for? - correct answer Canada's Anti-Spam Legislation
What are CEMs? - correct answer commercial electronic messages. Any message in electronic
form (eg emails, text messages, instant messages) sent to an electronic address, (eg. email
address, instant message accounts, cell phone accounts, social media accounts) and encourages
participation in a commercial activity, including, but not limited to, offering, advertising, or
promoting a product, service, or person.
"Phishing" meaning - correct answer Phishing involves impersonating a trusted person,
organization, or website to steal an individual's personal information, generally for the purpose
of identity theft.
4 points of Expressed consent - correct answer 1. written consent includes both paper and
electronic forms 2. Verbal consent can be documented by an independent third party or by an
unedited audio recording of the recipient giving consent 3. expressed consent cannot be hidden
in an agreement, attached to a product or service, or be a condition of sale 4. Express consent
does not expire unless it is withdrawn by the recipient
Unit 3, RECA Residential Unit 4, RECA Residential Unit 5, RECA
Residential Unit 6, RECA Residential Unit 7, RECA Residential Unit 8,
RECA Residential Unit 9
3 fundamental principles of fiduciary duty. AKA the 3 principles that give rise to fiduciary duties
in a representation relationship: - correct answer Trust and Confidence, Best Interests, Loyalty
8 General Obligations of REPs - correct answer Exercise Care and Skill, Act Honestly, Negotiate
Favourable terms, Maintain Confidentiality, Disclose Information, Act in Person, Obey Lawful
Instructions, Perform Mandate
6 Points of Fiduciary Duties - correct answer Provide Utmost Loyalty, Not make secret profits,
Handle Confident Information Properly, To Account, Avoid conflicts of interest, Disclose
conflicts of interest.
"To Account" meaning - correct answer Real estate professionals must account for all money
and/or property belonging to the client. This duty compels a real estate professional to
safeguard all money, documents, property, and information entrusted to them that relate to
the client's transaction.
"arm's length transaction" meaning - correct answer In real estate, an arm's length transaction
is when the buyer and seller each act in their own self-interest to try to get the best deal they
can.
4 common examples of deals that are not arm's length transactions - correct answer Sales
between friends or family members
Sales between an employer and his or her employees
Sales between a parent company and one of its subsidiaries
Sales between a trust and its beneficiaries
2 options if REP cannot provide competent service to a client - correct answer Be Supervised,
Refer
To determine if a REP has met the standard of care in a given situation, an objective review of
all facts is performed. 3 measures to determine if that has been met. - correct answer
Professional Standards, Professional Norms and Practices, Expert Testimony
"Expert Testimony" Meaning - correct answer Other real estate professionals, or experts, may
provide information as to the expectations of a reasonable and prudent real estate professional
and how they would have conducted themselves in similar circumstances.
,9 points in "Meeting the Standard of Care" - correct answer 1. Know the Type of Consumer
Relationship 2. Act consistent with the relationship chosen 3. Know the Brokerage Service 4.
Know the brokerage Policies and procedures 5. Be Aware of Market and Practical Issues 6.
Make Reasonable Efforts to Confirm information 7. Exercise Due care when preparing
documents 8. Seek Advice when appropriate 9. Be a Lifelong learner
When is written disclosure needed? - correct answer Whenever a REP receives or is about to
receive confidential information; including the consumer's real estate needs, motivation, or
financial ability.
4 things that must be included in written disclosure - correct answer 1. Whether the REP has
entered into a representation relationship with another party to the real estate transaction 2.
The service the REP will provide the consumer 3. Any conflicts of interest that may exist
between the consumer and the REP 4. Any additional facts or information that may influence
the consumer's decision to proceed with the real estate relationship.
Which guide must REPs practicing residential real estate must REPs provide to consumers for
relationship disclosures (the guide includes all information REPs must include in written
disclosures under the Rules) - correct answer RECA's Consumer Relationship Guide
For needed when non-representation relationship is selected by consumer (then becoming a
customer) - correct answer Customer acknowledgement form
Form needed when representation relationship is chosen by consumer (then becoming a client)
- correct answer Written Service Agreement
Does RECA's consumer relationships guide, customer Acknowledgement forms and written
service agreements contain mandatory content? Can it be changed? - correct answer Yes.
Although these documents may be changed at the request of a consumer or tailored to the
needs of a brokerage (eg. logo added, broker information added), content, meaning and intent
must not be altered.
Representation relationships are NOT established by the following 4 actions - correct answer 1.
REP conveying documents or providing general information to consumers 2. REP using certain
terms to refer to consumers (eg client customer) 3. Consumers using certain terms to refer to
REP (eg. Real estate agent, lease agent, buyers agent) 4.Consumers paying remuneration (ie
commission, fees) to the REP's brokerage
5Ds of Role Clarity and Consistency (5 words) - correct answer 1. Discuss 2. Determine 3.
Document 4. Disclose 5. Do
Longer explanations of the 5Ds of Role Clarity and Consistency (sentences) - correct answer 1.
Discuss the Real estate relationship 2. Determine your representative capacity 3. Document
your representative capacity in writing 4. Disclose your representative capacity (ie. seller's
,agent, buyer's agent, landlord's agent, or tenant's agent) 5. Do actions with your representative
capacity consistent with your established relationship
6 Benefits of Role Clarity and Consistency - correct answer 1. Meets Regulatory Requirements
2. Enhances professionalism 3. Prevents Unintended relationships 4. Clarifies responsibilities to
consumers 5. Clarifies services to consumers 6. Reduces disputes
True or False - Making referrals is a fiduciary duty that REPs owe to clients - correct answer
False
True or False - the standard of care for a REP in a particular set of circumstances is determined
subjectively - correct answer False
"subjectively" meaning - correct answer In a way that is based on personal feelings, tastes, or
opinions.
"Objectively" meaning - correct answer in a way that is not influenced by personal feelings or
opinions.
Defined in the Rules, what does confidential information include (3 things in specific) - correct
answer Any information concerning the client including the client's financial or personal
situation, the client's real estate, and transactions involving the client.
What does commercial activity refer to? - correct answer Any transaction, act, or conduct
involving the exchange of goods and/or services.
Is Buying/selling/leasing considered commercial activity? - correct answer Yes, the purchase,
sale, or leasing of real estate is considered a commercial activity
In Alberta the protection of individuals' personal information during real estate transactions is
regulated by which privacy legislation (x2) - correct answer PIPEDA (The Personal Information
Protection and Electronic Document Act) and PIPA (The Personal Information Protection Act)
Is PIPEDA a provincial or a Federal legislation? - correct answer Federal
Does PIPEDA legislation apply to Alberta? - correct answer Yes and No, since Alberta has PIPA
(which is substantially similar to PIPEDA so accepted), it does not all to all organizations
involved in commercial activities.
Which 2 areas does PIPEDA legislation continue to apply to in Alberta (and provinces that have
set up legislation like PIPA) - correct answer PIPEDA continues to apply to 1. Federally regulated
businesses (such as banks, airlines, and telecommunication companies. 2. Organizations
conducting business (involving person information) that crosses provincial or national borders
10 Privacy Principles in Practice - correct answer 1. Accountability 2. Identifying Purposes 3.
Consent 4. Limiting Collection 5. Limiting Use, Disclosure, and Retention 6. Accuracy 7.
Safeguards 8. Openness 9. Individual Access 10. Challenging Compliance
, 3 types of consent (recognized by Privacy legislation) - correct answer Express, implied or opt-
out
Can Real estate assistants hired by the brokerage do activities involving the public? - correct
answer Yes (but not tasks that would require being authorized to trade in real estate, mainly to
help with administrative functions or general office duties supporting the day-to-day activities.
In some instances, involve the public
If a REP hires an assistant (first must have broker's consent) can the tasks involve the public? -
correct answer No, they cannot involve the public. Otherwise they need to be employed by the
brokerage
3 Things that need to be implemented if using a virtual assistant in order to protect client
information - correct answer 1. Confirm the virtual assistant privacy policies and procedures are
comparable to that of the brokerage 2. Notify clients whose personal information is being
collected or transferred when notification was not included in the real estate relationship form.
Notification should be in writing and documents for brokerage record keeping. 3. Advise clients
whose personal information is collected or transferred, how the real estate brokerage's privacy
policies and procedures may be obtained in writing. Also let the client know who can answer
questions about the collection, use, and disclosure of their personal information when handled
by the virtual assistant.
How can a REP possibly use a virtual assistant? - correct answer The REP, along with their client
can consent to modify the relationship agreement regarding the collection, use , and disclosure
of their personal information to indicate that 'a virtual assistant employed by the real estate
professional has that same consent'.
What does CASL stand for? - correct answer Canada's Anti-Spam Legislation
What are CEMs? - correct answer commercial electronic messages. Any message in electronic
form (eg emails, text messages, instant messages) sent to an electronic address, (eg. email
address, instant message accounts, cell phone accounts, social media accounts) and encourages
participation in a commercial activity, including, but not limited to, offering, advertising, or
promoting a product, service, or person.
"Phishing" meaning - correct answer Phishing involves impersonating a trusted person,
organization, or website to steal an individual's personal information, generally for the purpose
of identity theft.
4 points of Expressed consent - correct answer 1. written consent includes both paper and
electronic forms 2. Verbal consent can be documented by an independent third party or by an
unedited audio recording of the recipient giving consent 3. expressed consent cannot be hidden
in an agreement, attached to a product or service, or be a condition of sale 4. Express consent
does not expire unless it is withdrawn by the recipient
