RECA FUNDAMENTALS EXAM | NEWEST ACTUAL EXAM
COMPREHENSIVE QUESTIONS AND VERIFIED ANSWERS
GRADED A+ | 100% CORRECT | LATEST 2026/2027 UPDATE!!
Tort Law - ✔✔✔ Correct Answer > Compensation for civil wrongs that
result in harm
- Negligent Tort
- carelessness, failure to exercise reasonable care
- Intentional Tort
- assault, fraud, theft, defamation
- strict liability Tort
- the act itself, producting defective products, using hazardous materials
Elements of representation relationships - ✔✔✔ Correct Answer > -
controlled by principal (client) - involves fiduciary duties
- affects principals legal position
Transaction Brokerage - ✔✔✔ Correct Answer > -means to resolve
conflict of interests
- if both clients accept conflict trade can proceed
- written agreement
,- clients must have opportunity to review agreement before signing
- must get opportunity to ask questions
Benefits of REIX - ✔✔✔ Correct Answer > - enhances the image of the
profession
- has the potential to save on insurance costs
- The profession is active in managing the program and its risks
Duty based approach to ethical decision making - ✔✔✔ Correct
Answer > - individuals intentions or motives
- belief in universal moral system of ethical reasoning
- individuals should do the right thing because its the right thing to do
Errors and Omissions Insurance - ✔✔✔ Correct Answer > real estate
equivalent of malpractice coverage
Voluntary Broker Resolution Process (VBRP) - ✔✔✔ Correct Answer
> - enables broker to take the lead in resolving complaints and disputes
- prior to RECA + Formal courts
- brokers confer with REIX before proceeding
,Privacy Law - ✔✔✔ Correct Answer > - Brokerages must designate a
privacy officer to be accountable for compliance
- must be consistent with the applicable privacy legislation
Benefits of Voluntary Broker Resolution Process - ✔✔✔ Correct
Answer > - avoids time and intrusion involved with RECA investigation
- identifies deficient brokerage practices that need improvement
- allows participation in the process to achieve acceptable resolution
- opportunity to mend relationship with consumer
Comprehensive General Liability Insurance - ✔✔✔ Correct Answer >
- broad coverage for claims against injury/damage
- civil liability (a fall)
- any damages or injuries
- legal defense costs
- does not cover issues related to real estate transactions
Three components of broker leadership - ✔✔✔ Correct Answer >
Authority, responsibility, and accountability
, Reactions to conflict - ✔✔✔ Correct Answer > Physical, Cognitive,
Emotional
Principles of Competition Act - ✔✔✔ Correct Answer > - Do not collude
with competitors
- do not discriminate against or refuse to do business with competitors -
do not mislead the public through advertisement or representation
Confidential information - ✔✔✔ Correct Answer > includes both
personal and business information
- not readily available info, may have value
Civil liability - ✔✔✔ Correct Answer > - private legal action between
disputing parties
- involves and plaintiff and defendant appearing in court
- established by the courts at the conclusion of legal proceedings
Types of Consent - ✔✔✔ Correct Answer > Express (most important) -
given verbally or in writing
Implied
COMPREHENSIVE QUESTIONS AND VERIFIED ANSWERS
GRADED A+ | 100% CORRECT | LATEST 2026/2027 UPDATE!!
Tort Law - ✔✔✔ Correct Answer > Compensation for civil wrongs that
result in harm
- Negligent Tort
- carelessness, failure to exercise reasonable care
- Intentional Tort
- assault, fraud, theft, defamation
- strict liability Tort
- the act itself, producting defective products, using hazardous materials
Elements of representation relationships - ✔✔✔ Correct Answer > -
controlled by principal (client) - involves fiduciary duties
- affects principals legal position
Transaction Brokerage - ✔✔✔ Correct Answer > -means to resolve
conflict of interests
- if both clients accept conflict trade can proceed
- written agreement
,- clients must have opportunity to review agreement before signing
- must get opportunity to ask questions
Benefits of REIX - ✔✔✔ Correct Answer > - enhances the image of the
profession
- has the potential to save on insurance costs
- The profession is active in managing the program and its risks
Duty based approach to ethical decision making - ✔✔✔ Correct
Answer > - individuals intentions or motives
- belief in universal moral system of ethical reasoning
- individuals should do the right thing because its the right thing to do
Errors and Omissions Insurance - ✔✔✔ Correct Answer > real estate
equivalent of malpractice coverage
Voluntary Broker Resolution Process (VBRP) - ✔✔✔ Correct Answer
> - enables broker to take the lead in resolving complaints and disputes
- prior to RECA + Formal courts
- brokers confer with REIX before proceeding
,Privacy Law - ✔✔✔ Correct Answer > - Brokerages must designate a
privacy officer to be accountable for compliance
- must be consistent with the applicable privacy legislation
Benefits of Voluntary Broker Resolution Process - ✔✔✔ Correct
Answer > - avoids time and intrusion involved with RECA investigation
- identifies deficient brokerage practices that need improvement
- allows participation in the process to achieve acceptable resolution
- opportunity to mend relationship with consumer
Comprehensive General Liability Insurance - ✔✔✔ Correct Answer >
- broad coverage for claims against injury/damage
- civil liability (a fall)
- any damages or injuries
- legal defense costs
- does not cover issues related to real estate transactions
Three components of broker leadership - ✔✔✔ Correct Answer >
Authority, responsibility, and accountability
, Reactions to conflict - ✔✔✔ Correct Answer > Physical, Cognitive,
Emotional
Principles of Competition Act - ✔✔✔ Correct Answer > - Do not collude
with competitors
- do not discriminate against or refuse to do business with competitors -
do not mislead the public through advertisement or representation
Confidential information - ✔✔✔ Correct Answer > includes both
personal and business information
- not readily available info, may have value
Civil liability - ✔✔✔ Correct Answer > - private legal action between
disputing parties
- involves and plaintiff and defendant appearing in court
- established by the courts at the conclusion of legal proceedings
Types of Consent - ✔✔✔ Correct Answer > Express (most important) -
given verbally or in writing
Implied
