RECA Residential Unit 1 Exam Actual
Questions and Answers 2026
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
,RECA Residential Unit 1 Exam Actual
Questions and Answers 2026
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
,RECA Residential Unit 1 Exam Actual
Questions and Answers 2026
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.
, RECA Residential Unit 1 Exam Actual
Questions and Answers 2026
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.
Questions and Answers 2026
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
,RECA Residential Unit 1 Exam Actual
Questions and Answers 2026
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
,RECA Residential Unit 1 Exam Actual
Questions and Answers 2026
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.
, RECA Residential Unit 1 Exam Actual
Questions and Answers 2026
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.
