RECA RESIDENTIAL EXAM | COMPLETE QUESTIONS WITH EXPERT
SOLUTIONS | 2026 LATEST UPDATED | GET A+
3 fundamental principles of fiduciary duty - (answer)Trust and Confidence, Best Interests,
Loyalty
8 General Obligations of REPs - (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 - (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 - (answer)Real estate professionals must account for all money and/or
property belonging to the client.
"arm's length transaction" meaning - (answer)In real estate, an arm's length transaction is 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 - (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 - (answer)Be Supervised, Refer
3 measures to determine if REP has met the standard of care - (answer)Professional Standards,
Professional Norms and Practices, Expert Testimony
"Expert Testimony" Meaning - (answer)Other real estate professionals, or experts, may provide
information as to the expectations of a reasonable and prudent real estate professional.
,9 points in "Meeting the Standard of Care" - (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? - (answer)Whenever a REP receives or is about to receive
confidential information.
4 things that must be included in written disclosure - (answer)1. Whether the REP has entered
into a representation relationship with another party 2. The service the REP will provide the
consumer 3. Any conflicts of interest that may exist 4. Any additional facts or information that
may influence the consumer's decision.
RECA's Consumer Relationship Guide - (answer)Guide that includes all information REPs must
include in written disclosures under the Rules.
Customer acknowledgement form - (answer)Form needed when representation relationship is
chosen by consumer.
Written Service Agreement - (answer)Form needed when representation relationship is chosen by
consumer.
Do RECA's consumer relationships guide, customer Acknowledgement forms and written
service agreements contain mandatory content? - (answer)Yes, but content, meaning and intent
must not be altered.
Representation relationships are NOT established by the following 4 actions - (answer)1. REP
conveying documents or providing general information 2. REP using certain terms to refer to
consumers 3. Consumers using certain terms to refer to REP 4. Consumers paying remuneration
to the REP's brokerage.
5Ds of Role Clarity and Consistency - (answer)1. Discuss 2. Determine 3. Document 4. Disclose
5. Do
,6 Benefits of Role Clarity and Consistency - (answer)1. Meets Regulatory Requirements 2.
Enhances professionalism 3. Prevents Unintended relationships 4. Clarifies responsibilities to
consumers 5. Clarifies services to consumers 6. Reduces disputes
True or False - Making referrals is a fiduciary duty that REPs owe to clients - (answer)False
True or False - the standard of care for a REP in a particular set of circumstances is determined
subjectively - (answer)False
"subjectively" meaning - (answer)In a way that is based on personal feelings, tastes, or opinions.
"Objectively" meaning - (answer)In a way that is not influenced by personal feelings or opinions.
What does confidential information include? - (answer)Any information concerning the client
including the client's financial or personal situation, the client's real estate, and transactions
involving the client.
What does commercial activity refer to? - (answer)Any transaction, act, or conduct involving the
exchange of goods and/or services.
Is Buying/selling/leasing considered commercial activity? - (answer)Yes, the purchase, sale, or
leasing of real estate is considered a commercial activity.
In Alberta the protection of individuals' personal information during real estate transactions is
regulated by which privacy legislation? - (answer)PIPEDA (The Personal Information Protection
and Electronic Document Act) and PIPA (The Personal Information Protection Act).
Is PIPEDA a provincial or a Federal legislation? - (answer)Federal
Does PIPEDA legislation apply to Alberta? - (answer)Yes and No, since Alberta has PIPA (which
is substantially similar to PIPEDA so accepted).
, Which 2 areas does PIPEDA legislation continue to apply to in Alberta? - (answer)1. Federally
regulated businesses 2. Organizations conducting business that crosses provincial or national
borders.
10 Privacy Principles in Practice - (answer)1. Accountability 2. Identifying Purposes 3. Consent
4. Limiting Collection 5. Limiting Use, Disclosure, and Retention 6. Accuracy 7. Safeguards 8.
Openness 9. Individual Access 10. Challenging Compliance
3 types of consent recognized by Privacy legislation - (answer)Express, implied or opt-out.
Can Real estate assistants hired by the brokerage do activities involving the public? -
(answer)Yes, but not tasks that would require being authorized to trade in real estate.
If a REP hires an assistant, can the tasks involve the public? - (answer)No, they cannot involve
the public unless they are employed by the brokerage.
3 Things that need to be implemented if using a virtual assistant in order to protect client
information - (answer)1. Confirm the virtual assistant privacy policies and procedures are
comparable to that of the brokerage 2. Notify clients whose personal information is being
collected or transferred 3. Document for brokerage record keeping.
REP - (answer)Real Estate Professional
CASL - (answer)Canada's Anti-Spam Legislation
CEMs - (answer)Commercial electronic messages. Any message in electronic form (eg emails,
text messages, instant messages) sent to an electronic address, (eg. email address, instant
message accounts, cell phone accounts, social media accounts) and encourages participation in a
commercial activity, including, but not limited to, offering, advertising, or promoting a product,
service, or person.
SOLUTIONS | 2026 LATEST UPDATED | GET A+
3 fundamental principles of fiduciary duty - (answer)Trust and Confidence, Best Interests,
Loyalty
8 General Obligations of REPs - (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 - (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 - (answer)Real estate professionals must account for all money and/or
property belonging to the client.
"arm's length transaction" meaning - (answer)In real estate, an arm's length transaction is 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 - (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 - (answer)Be Supervised, Refer
3 measures to determine if REP has met the standard of care - (answer)Professional Standards,
Professional Norms and Practices, Expert Testimony
"Expert Testimony" Meaning - (answer)Other real estate professionals, or experts, may provide
information as to the expectations of a reasonable and prudent real estate professional.
,9 points in "Meeting the Standard of Care" - (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? - (answer)Whenever a REP receives or is about to receive
confidential information.
4 things that must be included in written disclosure - (answer)1. Whether the REP has entered
into a representation relationship with another party 2. The service the REP will provide the
consumer 3. Any conflicts of interest that may exist 4. Any additional facts or information that
may influence the consumer's decision.
RECA's Consumer Relationship Guide - (answer)Guide that includes all information REPs must
include in written disclosures under the Rules.
Customer acknowledgement form - (answer)Form needed when representation relationship is
chosen by consumer.
Written Service Agreement - (answer)Form needed when representation relationship is chosen by
consumer.
Do RECA's consumer relationships guide, customer Acknowledgement forms and written
service agreements contain mandatory content? - (answer)Yes, but content, meaning and intent
must not be altered.
Representation relationships are NOT established by the following 4 actions - (answer)1. REP
conveying documents or providing general information 2. REP using certain terms to refer to
consumers 3. Consumers using certain terms to refer to REP 4. Consumers paying remuneration
to the REP's brokerage.
5Ds of Role Clarity and Consistency - (answer)1. Discuss 2. Determine 3. Document 4. Disclose
5. Do
,6 Benefits of Role Clarity and Consistency - (answer)1. Meets Regulatory Requirements 2.
Enhances professionalism 3. Prevents Unintended relationships 4. Clarifies responsibilities to
consumers 5. Clarifies services to consumers 6. Reduces disputes
True or False - Making referrals is a fiduciary duty that REPs owe to clients - (answer)False
True or False - the standard of care for a REP in a particular set of circumstances is determined
subjectively - (answer)False
"subjectively" meaning - (answer)In a way that is based on personal feelings, tastes, or opinions.
"Objectively" meaning - (answer)In a way that is not influenced by personal feelings or opinions.
What does confidential information include? - (answer)Any information concerning the client
including the client's financial or personal situation, the client's real estate, and transactions
involving the client.
What does commercial activity refer to? - (answer)Any transaction, act, or conduct involving the
exchange of goods and/or services.
Is Buying/selling/leasing considered commercial activity? - (answer)Yes, the purchase, sale, or
leasing of real estate is considered a commercial activity.
In Alberta the protection of individuals' personal information during real estate transactions is
regulated by which privacy legislation? - (answer)PIPEDA (The Personal Information Protection
and Electronic Document Act) and PIPA (The Personal Information Protection Act).
Is PIPEDA a provincial or a Federal legislation? - (answer)Federal
Does PIPEDA legislation apply to Alberta? - (answer)Yes and No, since Alberta has PIPA (which
is substantially similar to PIPEDA so accepted).
, Which 2 areas does PIPEDA legislation continue to apply to in Alberta? - (answer)1. Federally
regulated businesses 2. Organizations conducting business that crosses provincial or national
borders.
10 Privacy Principles in Practice - (answer)1. Accountability 2. Identifying Purposes 3. Consent
4. Limiting Collection 5. Limiting Use, Disclosure, and Retention 6. Accuracy 7. Safeguards 8.
Openness 9. Individual Access 10. Challenging Compliance
3 types of consent recognized by Privacy legislation - (answer)Express, implied or opt-out.
Can Real estate assistants hired by the brokerage do activities involving the public? -
(answer)Yes, but not tasks that would require being authorized to trade in real estate.
If a REP hires an assistant, can the tasks involve the public? - (answer)No, they cannot involve
the public unless they are employed by the brokerage.
3 Things that need to be implemented if using a virtual assistant in order to protect client
information - (answer)1. Confirm the virtual assistant privacy policies and procedures are
comparable to that of the brokerage 2. Notify clients whose personal information is being
collected or transferred 3. Document for brokerage record keeping.
REP - (answer)Real Estate Professional
CASL - (answer)Canada's Anti-Spam Legislation
CEMs - (answer)Commercial electronic messages. Any message in electronic form (eg emails,
text messages, instant messages) sent to an electronic address, (eg. email address, instant
message accounts, cell phone accounts, social media accounts) and encourages participation in a
commercial activity, including, but not limited to, offering, advertising, or promoting a product,
service, or person.
