RECA Residential Exam Questions &
Answers (Grade A+)
Fiduciary Representation -
correct answer ✅- Trust and confidence
- Best interests
- Loyalty
5 Ds of Role Clarity -
correct answer ✅1. Discuss
2. Determine
3. Document
4. Disclose
5. Do
Must disclose in writing -
correct answer ✅- the nature of services provided
- whether professional has entered into representation relationship
with other party
- any conflicts of interest
- any other facts that may influence consumers decision to proceed
with relationship
,RECA Residential Exam Questions &
Answers (Grade A+)
made to clarify and provide proof of undertanding in event issues
or disputes arise
Written Service Agreement vs Customer Acknowledgement Forms -
correct answer ✅Written Service Agreement
- when consumer chooses a representation relationship
- becomes a client
- provide signed copy to brokerage
Customer Acknowledge forms
- non-representation relationship
- becomes a customer
- provide signed copy to brokerage
PIPEDA -
correct answer ✅- Federal legislation
PIPA -
correct answer ✅Alberta's legislation, how private organizations
use and disclose personal information.
,RECA Residential Exam Questions &
Answers (Grade A+)
Power of Attorney -
correct answer ✅a legal document authorizing someone to act on
your behalf
- must be 18
- POA must be written, dated and signed by both donor and witness
- donor must be mentally capable or contract is void
- only effective as long as donor is alive, will takes effect once death
Types of POA -
correct answer ✅General POA
- has no limits on powers of the attorney
- can make all decisions regarding financial and legal affairs
- exception where the donor resides and health care
Special POA
- make certain decisions
- also called limited POA
- may grant authority to oversee sale, deals with land
- must be registered on Certificate of Title
, RECA Residential Exam Questions &
Answers (Grade A+)
Immediate POA
- takes effect as soon as POA is signed, dated and witnessed
- terminates upon loss of mental capacity or death
Enduring POA
- immediately upon being signed, dated and witnessed
- continues if donor becomes incapable, mentally incapacitated
- must include statement whether it takes effect immediately and
continues...
Judicial Sale -
correct answer ✅Court ordered sale usually as a way to resolve
legal matters
- primary debt recovery method for default mortgages
Foreclosure -
correct answer ✅legal action supervised by the court following a
default on the mortgage.
-transfers the real property from the borrower to the lender and
erases interests on title.
Answers (Grade A+)
Fiduciary Representation -
correct answer ✅- Trust and confidence
- Best interests
- Loyalty
5 Ds of Role Clarity -
correct answer ✅1. Discuss
2. Determine
3. Document
4. Disclose
5. Do
Must disclose in writing -
correct answer ✅- the nature of services provided
- whether professional has entered into representation relationship
with other party
- any conflicts of interest
- any other facts that may influence consumers decision to proceed
with relationship
,RECA Residential Exam Questions &
Answers (Grade A+)
made to clarify and provide proof of undertanding in event issues
or disputes arise
Written Service Agreement vs Customer Acknowledgement Forms -
correct answer ✅Written Service Agreement
- when consumer chooses a representation relationship
- becomes a client
- provide signed copy to brokerage
Customer Acknowledge forms
- non-representation relationship
- becomes a customer
- provide signed copy to brokerage
PIPEDA -
correct answer ✅- Federal legislation
PIPA -
correct answer ✅Alberta's legislation, how private organizations
use and disclose personal information.
,RECA Residential Exam Questions &
Answers (Grade A+)
Power of Attorney -
correct answer ✅a legal document authorizing someone to act on
your behalf
- must be 18
- POA must be written, dated and signed by both donor and witness
- donor must be mentally capable or contract is void
- only effective as long as donor is alive, will takes effect once death
Types of POA -
correct answer ✅General POA
- has no limits on powers of the attorney
- can make all decisions regarding financial and legal affairs
- exception where the donor resides and health care
Special POA
- make certain decisions
- also called limited POA
- may grant authority to oversee sale, deals with land
- must be registered on Certificate of Title
, RECA Residential Exam Questions &
Answers (Grade A+)
Immediate POA
- takes effect as soon as POA is signed, dated and witnessed
- terminates upon loss of mental capacity or death
Enduring POA
- immediately upon being signed, dated and witnessed
- continues if donor becomes incapable, mentally incapacitated
- must include statement whether it takes effect immediately and
continues...
Judicial Sale -
correct answer ✅Court ordered sale usually as a way to resolve
legal matters
- primary debt recovery method for default mortgages
Foreclosure -
correct answer ✅legal action supervised by the court following a
default on the mortgage.
-transfers the real property from the borrower to the lender and
erases interests on title.
