RECA FUNDAMENTALS EXAM
ACTUAL QUESTIONS & VERIFIED
ANSWERS PASSED UPDATED
VERSION
Which of the following is NOT a RECA educational resource for industry professionals?
- Correct Answer ✔✔ Spatial Information System (Spin 2)
Who is responsible for producing the "Real Property Report"? - Correct Answer ✔✔
Alberta Land Surveyor
Benefits of RECAS trust assurance and practice review program - Correct Answer ✔✔ -
effective record keeping and administrative procedures
- education and advice in relation to brokerage trust accounting
- identifies and resolves potential problems regarding brokerage trust accounting
requirements
Responsibilities of RECA - Correct Answer ✔✔ - Handling professional conduct review
- establishing industry standards of practice
- issuing authorization to trade in real estate
Four factors of production - Correct Answer ✔✔ land, labor, capital, entrepreneurship
RECA provides the following annual reports - Correct Answer ✔✔ - financial reports
- industry statistics
- reports for the previous year
Who has the power to amend the Rules of the RE Act? - Correct Answer ✔✔ Council
(not the Provincial Legislature, their job is to amend the RE Act itself - two very different
things)
Who has the power to suspend / revoke a license? - Correct Answer ✔✔ The Executive
Director
- determines the length of suspension
- serves the decision on the industry professional
- will consider the evidence when making the decision
What's included in written service agreements? - Correct Answer ✔✔ - the services to
be provided by the brokerage
,- the responsibilities of each party to the agreement (i.e. remuneration from client to
brokerage)
- the names of the parties to the agreement
Failure to immediately notify Executive Director of changes to information provided in
support of license results in: - Correct Answer ✔✔ - Exec. Director may refer the matter
for a professional conduct review
- Exec. Director may suspend industry professionals license
- Exec. director may cancel the industry professionals license
Length of time a license is valid for if NOT registered w a brokerage - Correct Answer
✔✔ 36 months
Level of Disclosure: Other party represented by another brokerage - Correct Answer
✔✔ Level 1
Level of Disclosure: Other party not represented - Correct Answer ✔✔ Level 2
Level of Disclosure: Other party represented by same brokerage - Correct Answer ✔✔
Level 3
Inducement vs incentives - Correct Answer ✔✔ - Inducement is client specific
- Incentive is offered by the brokerage to any potential client
Records must be: - Correct Answer ✔✔ - kept in Alberta
- maintained in electronic form
- kept by brokerage for 3 years
- accessible to RECA for inspection
- they can be held in multiple locations, provided they're all in Alberta
Personal Ethics - Correct Answer ✔✔ Morals - held by individual
Ethics - Standard of Conduct (values/beliefs that guide actions)
Professional Standards - Rules and Regulations
Real Estate Insurance Exchange (REIX) - Correct Answer ✔✔ - provides financial
protection
- compensates consumers up to $35,000
- mandatory errors & omissions insurance + negligence
- excludes injuries or death, transfers of title, commission/fees
- $3,500 is the first deductible
- $7,000 if second claim.
- RECA collects premiums with licensing fees
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
Ethical Decision Making - Correct Answer ✔✔ 1. Recognize
2. Analyze
3. Test
3A. Seek assistance if needed
4. Implement
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
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
Errors and Omissions Insurance - Correct Answer ✔✔ real estate equivalent of
malpractice coverage
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
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
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
Privacy Law - Correct Answer ✔✔ - Brokerages must designate a privacy officer to be
accountable for compliance
- must be consistent with the applicable privacy legislation
ACTUAL QUESTIONS & VERIFIED
ANSWERS PASSED UPDATED
VERSION
Which of the following is NOT a RECA educational resource for industry professionals?
- Correct Answer ✔✔ Spatial Information System (Spin 2)
Who is responsible for producing the "Real Property Report"? - Correct Answer ✔✔
Alberta Land Surveyor
Benefits of RECAS trust assurance and practice review program - Correct Answer ✔✔ -
effective record keeping and administrative procedures
- education and advice in relation to brokerage trust accounting
- identifies and resolves potential problems regarding brokerage trust accounting
requirements
Responsibilities of RECA - Correct Answer ✔✔ - Handling professional conduct review
- establishing industry standards of practice
- issuing authorization to trade in real estate
Four factors of production - Correct Answer ✔✔ land, labor, capital, entrepreneurship
RECA provides the following annual reports - Correct Answer ✔✔ - financial reports
- industry statistics
- reports for the previous year
Who has the power to amend the Rules of the RE Act? - Correct Answer ✔✔ Council
(not the Provincial Legislature, their job is to amend the RE Act itself - two very different
things)
Who has the power to suspend / revoke a license? - Correct Answer ✔✔ The Executive
Director
- determines the length of suspension
- serves the decision on the industry professional
- will consider the evidence when making the decision
What's included in written service agreements? - Correct Answer ✔✔ - the services to
be provided by the brokerage
,- the responsibilities of each party to the agreement (i.e. remuneration from client to
brokerage)
- the names of the parties to the agreement
Failure to immediately notify Executive Director of changes to information provided in
support of license results in: - Correct Answer ✔✔ - Exec. Director may refer the matter
for a professional conduct review
- Exec. Director may suspend industry professionals license
- Exec. director may cancel the industry professionals license
Length of time a license is valid for if NOT registered w a brokerage - Correct Answer
✔✔ 36 months
Level of Disclosure: Other party represented by another brokerage - Correct Answer
✔✔ Level 1
Level of Disclosure: Other party not represented - Correct Answer ✔✔ Level 2
Level of Disclosure: Other party represented by same brokerage - Correct Answer ✔✔
Level 3
Inducement vs incentives - Correct Answer ✔✔ - Inducement is client specific
- Incentive is offered by the brokerage to any potential client
Records must be: - Correct Answer ✔✔ - kept in Alberta
- maintained in electronic form
- kept by brokerage for 3 years
- accessible to RECA for inspection
- they can be held in multiple locations, provided they're all in Alberta
Personal Ethics - Correct Answer ✔✔ Morals - held by individual
Ethics - Standard of Conduct (values/beliefs that guide actions)
Professional Standards - Rules and Regulations
Real Estate Insurance Exchange (REIX) - Correct Answer ✔✔ - provides financial
protection
- compensates consumers up to $35,000
- mandatory errors & omissions insurance + negligence
- excludes injuries or death, transfers of title, commission/fees
- $3,500 is the first deductible
- $7,000 if second claim.
- RECA collects premiums with licensing fees
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
Ethical Decision Making - Correct Answer ✔✔ 1. Recognize
2. Analyze
3. Test
3A. Seek assistance if needed
4. Implement
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
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
Errors and Omissions Insurance - Correct Answer ✔✔ real estate equivalent of
malpractice coverage
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
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
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
Privacy Law - Correct Answer ✔✔ - Brokerages must designate a privacy officer to be
accountable for compliance
- must be consistent with the applicable privacy legislation
