RECA Unit 2 Exam Questions with
Verified Answers
The purposes of RECA according to the Act is the following... - Answer- 1. Set and
enforce rules for industry members to follow, to promote integrity, and protect the
consumer from mortgage fraud.
2. Provide services that help industry professionals in the industry.
3. Administer (enforce) the Act through the Rules, Regulations & Bylaws
Describe and explain the differences between the Rules, Regulations & Bylaws -
Answer- 1: Rules are a set of instructions to be followed by all industry professionals
2. Regulations are the changes (amendments) to the Act (not rules).
3. Bylaws are administrative guidelines (rules) that RECA uses to operate its business
List industry sectors who are under jurisdiction of the Act - Answer- Associates,
associate brokers, brokers, mortgage brokers and real estate appraisers
Name & explain the resources developed by RECA and where to find them. - Answer-
1. Information Bulletins, which provide a short explanation of sections in the Act or
Rules. Can be found on the RECA website.
2. RECA Guides, which are a more detailed version of Information Bulletins. Can be
viewed on the RECA website
Explain the 6 Parts in the Act - Answer- Part 1: Defines RECA's purpose and powers
Part 2: States that industry members require authorization to trade in real estate/deal in
mortgages & provide appraisal services
Part 3: Ability to audit the conduct of industry members
Part 4: Real Estate Assurance Fund designed to protect consumers from fraud or
breach of trust.
Part 5: Requires industry members to be educated in real estate & mortgage
brokerages
Part 6: Lieutenant Governor in Council provides guidelines on council orders
Explain the 6 Parts in the Rules - Answer- Part 1: Industry members must be authorized
with licenses through the eligibility requirements
Part 2: Industry standards of practice
Part 3: Accounting, record keeping & reporting requirements of Mortgage brokerages &
appraisers
Part 4: Requires industry members to carry errors & omissions insurance
Part 5: Fees, ex: licenses/ real estate assurance fund
Part 6: Identifies the date when these rules came into force
, Who has the power to change the rules, the regulations and the bylaws? - Answer- The
Rules are amended by the Council
Regulations of the Act are recommended by the Minister of Service Alberta, Provincial
legislation discusses the recommendations and is Proclaimed by the Lieutenant
Governor in Council
The Bylaws are Amended by the Council
The Act can only be directly changed by legislation
Identify the 4 titles within the brokerage - Answer- Associate: Authorized to trade real
estate on behalf of a brokerage
Associate Broker: Same qualifications as a broker, but can't operate the brokerage. Can
trade real estate on behalf of it however
Broker: Operates the real estate brokerage he represents. Can trade real estate on
behalf of the brokerage
Brokerage: Legal entity (Corp, sole prop or partnership) licensed and registered by
RECA to trade real estate
List the requirements for a license and registration from RECA for Associates - Answer-
Licensing: The person must pass the fundamentals of real estate and at least 1 practice
course. Ex: Residential/Commercial/Rural/Property management
Registration: After completing licensing courses, the person must register with a real
estate brokerage
Final: Once both of these are done, RECA issues a license and registration certificate to
the person
Identify the 8 steps needed to become authorized by RECA to trade in real estate, and
to maintain your license upon renewal. - Answer- 1: Meet enrolment requirements
(legally can work in Canada/18+/Minimum high school/proficient in English)
2. Complete REAP (Fundamentals of Real Estate, and 1 of 4 practice courses)
3. Request Certified Criminal Record Check
4. Obtain employment with brokerage (have 1 year from complete the practice course to
find a brokerage)
5. RECA determines suitability (lifetime bans/bankruptcy)
6: RECA grants authorization (print your certificate from the RECA website)
7: Complete Re-licensing Education (must be done B4 Sept 30)
8: Renew Registration sept 30th
Describe the process of obtaining a Certified Criminal Record Check - Answer- 1: Go to
fingerprint agency
2: Send fingerprints electronically to RCMP in Ottawa
3: Submit a third party waiver of consent authorizing the RCMP to send the CCRC
directly to RECA (CCRC can't be more than 6 months old)
4: RECA receives CCRC, if birth name and email/government ID matches, I am good to
go
Verified Answers
The purposes of RECA according to the Act is the following... - Answer- 1. Set and
enforce rules for industry members to follow, to promote integrity, and protect the
consumer from mortgage fraud.
2. Provide services that help industry professionals in the industry.
3. Administer (enforce) the Act through the Rules, Regulations & Bylaws
Describe and explain the differences between the Rules, Regulations & Bylaws -
Answer- 1: Rules are a set of instructions to be followed by all industry professionals
2. Regulations are the changes (amendments) to the Act (not rules).
3. Bylaws are administrative guidelines (rules) that RECA uses to operate its business
List industry sectors who are under jurisdiction of the Act - Answer- Associates,
associate brokers, brokers, mortgage brokers and real estate appraisers
Name & explain the resources developed by RECA and where to find them. - Answer-
1. Information Bulletins, which provide a short explanation of sections in the Act or
Rules. Can be found on the RECA website.
2. RECA Guides, which are a more detailed version of Information Bulletins. Can be
viewed on the RECA website
Explain the 6 Parts in the Act - Answer- Part 1: Defines RECA's purpose and powers
Part 2: States that industry members require authorization to trade in real estate/deal in
mortgages & provide appraisal services
Part 3: Ability to audit the conduct of industry members
Part 4: Real Estate Assurance Fund designed to protect consumers from fraud or
breach of trust.
Part 5: Requires industry members to be educated in real estate & mortgage
brokerages
Part 6: Lieutenant Governor in Council provides guidelines on council orders
Explain the 6 Parts in the Rules - Answer- Part 1: Industry members must be authorized
with licenses through the eligibility requirements
Part 2: Industry standards of practice
Part 3: Accounting, record keeping & reporting requirements of Mortgage brokerages &
appraisers
Part 4: Requires industry members to carry errors & omissions insurance
Part 5: Fees, ex: licenses/ real estate assurance fund
Part 6: Identifies the date when these rules came into force
, Who has the power to change the rules, the regulations and the bylaws? - Answer- The
Rules are amended by the Council
Regulations of the Act are recommended by the Minister of Service Alberta, Provincial
legislation discusses the recommendations and is Proclaimed by the Lieutenant
Governor in Council
The Bylaws are Amended by the Council
The Act can only be directly changed by legislation
Identify the 4 titles within the brokerage - Answer- Associate: Authorized to trade real
estate on behalf of a brokerage
Associate Broker: Same qualifications as a broker, but can't operate the brokerage. Can
trade real estate on behalf of it however
Broker: Operates the real estate brokerage he represents. Can trade real estate on
behalf of the brokerage
Brokerage: Legal entity (Corp, sole prop or partnership) licensed and registered by
RECA to trade real estate
List the requirements for a license and registration from RECA for Associates - Answer-
Licensing: The person must pass the fundamentals of real estate and at least 1 practice
course. Ex: Residential/Commercial/Rural/Property management
Registration: After completing licensing courses, the person must register with a real
estate brokerage
Final: Once both of these are done, RECA issues a license and registration certificate to
the person
Identify the 8 steps needed to become authorized by RECA to trade in real estate, and
to maintain your license upon renewal. - Answer- 1: Meet enrolment requirements
(legally can work in Canada/18+/Minimum high school/proficient in English)
2. Complete REAP (Fundamentals of Real Estate, and 1 of 4 practice courses)
3. Request Certified Criminal Record Check
4. Obtain employment with brokerage (have 1 year from complete the practice course to
find a brokerage)
5. RECA determines suitability (lifetime bans/bankruptcy)
6: RECA grants authorization (print your certificate from the RECA website)
7: Complete Re-licensing Education (must be done B4 Sept 30)
8: Renew Registration sept 30th
Describe the process of obtaining a Certified Criminal Record Check - Answer- 1: Go to
fingerprint agency
2: Send fingerprints electronically to RCMP in Ottawa
3: Submit a third party waiver of consent authorizing the RCMP to send the CCRC
directly to RECA (CCRC can't be more than 6 months old)
4: RECA receives CCRC, if birth name and email/government ID matches, I am good to
go
