RECA Fundamentals Exam / Latest 2025
Questions & Verified Answers (GRADED A+)
1. Which of the following is NOT a RECA educational resource for industry professionals?
Spatial Information System (Spin 2)
2. Which entity has the authority to amend the Real Estate Act: Provincial Legislature
3. Which of the following measures the change in a cost of a fixed basket of goods and services
purchased by families over a period of time: Consumer Price Index (CPI)
4. Which of the following will occur to the supply of a good when there is a change in quantity
supplied due to a price increase? an increase in quantity supplied
5. Microeconomics: studies the basic theories of supply and demand as it relates to individuals,
households and firms
6. Resource Markets: facilitate the exchange of factors of production
7. What causes the quantity demanded to shift? change in tastes, expectations, and number of
consumers
8. benefits of economic growth: depletion of natural resources
9. Real Property Report: document produced by Alberta Land Surveyor
10. Which of the following is not a non-price determinant of demand: cost of production
11. What type of economy does Canada have? mixed economy
12. Benefits of RECAS trust assurance and practice review program:
- 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
13. Responsibilities of RECA:
- Handling professional conduct review
- establishing industry standards of practice
- issuing authorization to trade in real estate
14. Four factors of production: land, labor, capital, entrepreneurship
,15. RECA provides the following annual reports:
- financial reports
- industry statistics
- reports for the previous year
16. The structure of real estate in Alberta includes;
- local real estate boards
- Alberta real estate association
- Canadian real estate association
17. Referral definition:
-The act of recommending or directing a person for service to another person or business
- brokerage is responsible for paying and receiving remuneration in connection to trade
18. RECAS professional conduct review Objects: - gather all relevant information - treat parties fairly
-gather information efficiently
19. Amendments to the Act: - can be made by provincial legislature with recommendations by the
Minister of Service Alberta
20. Amendments to the rules: The rules contain the day-to-day activities
- council has the authority to create and amend
21. Executive Director can suspend license:
- determines the length of suspension
- serves the decision on the industry professional
- will consider the evidence when making the decision
22. What’s included in written service agreements?
- the services to be provided by the brokerage
- the responsibilities of each party to the agreement
- the names of the parties to the agreement
23. failure to immediately notify Executive Director of changes to information provided in support
of license results in:
- Exec. Director may refer the matter for a professional conduct review
- Exec. Director may suspend industry professional’s license
- Exec. director may cancel the industry professional’s license
, 24. How long is license valid if not registered with brokerage? 36 months
25. Levels of Disclosure:
1. other party represented by another brokerage
2. other party not represented
3. other party represented by same brokerage
26. Designated Agency vs Common law:
-Designated Agency
- relationship with individual instead of brokerage
- conflict of interest only if agent has an interest in property
Common Law
- agency relationship exists
- conflict of interest extends to whole brokerage
- must be disclosed
27. Inducement vs incentives:
- Inducement is client specific
- incentives must be offered by brokerage to everyone
28. If industry professional withdraws from profession during disciplinary proceedings:
- RECA issues a news release
- all disciplinary proceedings terminated
- lifetime ban from all industry professions governed by RECA
29 Advisory Notes:
-Technical breach of legislation
- ex. forgetting brokerage name on marketing
30. Letters of Reprimand:
- where cases of conduct deserving sanction is less serious
- agent has also received an advisory note
31. Administrative penalties: - actions breached a section of rules and deemed potentially serious
32. Approaches to complaints agent agent:
- Advisory notes
Questions & Verified Answers (GRADED A+)
1. Which of the following is NOT a RECA educational resource for industry professionals?
Spatial Information System (Spin 2)
2. Which entity has the authority to amend the Real Estate Act: Provincial Legislature
3. Which of the following measures the change in a cost of a fixed basket of goods and services
purchased by families over a period of time: Consumer Price Index (CPI)
4. Which of the following will occur to the supply of a good when there is a change in quantity
supplied due to a price increase? an increase in quantity supplied
5. Microeconomics: studies the basic theories of supply and demand as it relates to individuals,
households and firms
6. Resource Markets: facilitate the exchange of factors of production
7. What causes the quantity demanded to shift? change in tastes, expectations, and number of
consumers
8. benefits of economic growth: depletion of natural resources
9. Real Property Report: document produced by Alberta Land Surveyor
10. Which of the following is not a non-price determinant of demand: cost of production
11. What type of economy does Canada have? mixed economy
12. Benefits of RECAS trust assurance and practice review program:
- 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
13. Responsibilities of RECA:
- Handling professional conduct review
- establishing industry standards of practice
- issuing authorization to trade in real estate
14. Four factors of production: land, labor, capital, entrepreneurship
,15. RECA provides the following annual reports:
- financial reports
- industry statistics
- reports for the previous year
16. The structure of real estate in Alberta includes;
- local real estate boards
- Alberta real estate association
- Canadian real estate association
17. Referral definition:
-The act of recommending or directing a person for service to another person or business
- brokerage is responsible for paying and receiving remuneration in connection to trade
18. RECAS professional conduct review Objects: - gather all relevant information - treat parties fairly
-gather information efficiently
19. Amendments to the Act: - can be made by provincial legislature with recommendations by the
Minister of Service Alberta
20. Amendments to the rules: The rules contain the day-to-day activities
- council has the authority to create and amend
21. Executive Director can suspend license:
- determines the length of suspension
- serves the decision on the industry professional
- will consider the evidence when making the decision
22. What’s included in written service agreements?
- the services to be provided by the brokerage
- the responsibilities of each party to the agreement
- the names of the parties to the agreement
23. failure to immediately notify Executive Director of changes to information provided in support
of license results in:
- Exec. Director may refer the matter for a professional conduct review
- Exec. Director may suspend industry professional’s license
- Exec. director may cancel the industry professional’s license
, 24. How long is license valid if not registered with brokerage? 36 months
25. Levels of Disclosure:
1. other party represented by another brokerage
2. other party not represented
3. other party represented by same brokerage
26. Designated Agency vs Common law:
-Designated Agency
- relationship with individual instead of brokerage
- conflict of interest only if agent has an interest in property
Common Law
- agency relationship exists
- conflict of interest extends to whole brokerage
- must be disclosed
27. Inducement vs incentives:
- Inducement is client specific
- incentives must be offered by brokerage to everyone
28. If industry professional withdraws from profession during disciplinary proceedings:
- RECA issues a news release
- all disciplinary proceedings terminated
- lifetime ban from all industry professions governed by RECA
29 Advisory Notes:
-Technical breach of legislation
- ex. forgetting brokerage name on marketing
30. Letters of Reprimand:
- where cases of conduct deserving sanction is less serious
- agent has also received an advisory note
31. Administrative penalties: - actions breached a section of rules and deemed potentially serious
32. Approaches to complaints agent agent:
- Advisory notes
