,RECA FUNDAMENTALS EXAM AND STUDY GUIDE LATEST ACTUAL EXAM 400 QUESTIONS AND CORRECT
DETAILED ANSWERS WITH RATIONALES
Which of the following is NOT a RECA educational resource for industry professionals? -
(ANSWER)Spatial Information System (Spin 2)
Which entity has the authority to amend the Real Estate Act - (ANSWER)Provincial Legislature
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 - (ANSWER)Consumer Price Index (CPI)
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? - (ANSWER)an increase in quantity supplied
Microeconics - (ANSWER)studies the basic theories of supply and demand as it relates to individuals,
households and firms
Resource Markets - (ANSWER)facilitate the exchange of factors of production
What causes the quantity demanded to shift? - (ANSWER)change in tastes, expectations, and number
of consumers
benefits of economic growth - (ANSWER)depletion of natural resources
Real Property Report - (ANSWER)document produced by Alberta Land Surveyor
Which of the following is not a non-price determinant of demand - (ANSWER)cost of production
What type of economy does Canada have? - (ANSWER)mixed economy
,Benefits of RECAS trust assurance and practice review program - (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 - (ANSWER)- Handling professional conduct review
- establishing industry standards of practice
- issuing authorization to trade in real estate
Four factors of production - (ANSWER)land, labor, capital, entrepreneurship
RECA provides the following annual reports - (ANSWER)- financial reports
- industry statistics
- reports for the previous year
The structure of real estate in Alberta includes; - (ANSWER)- local real estate boards
- alberta real estate association
- canadian real estate association
Referral definition - (ANSWER)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
RECAS professional conduct review Objects - (ANSWER)- gather all relevant information
- treat parties fairly
-gather information efficiently
Amendments to the Act - (ANSWER)- can be made by provincial legislature with recommendations by
the Minister of Service Alberta
, Amendments to the rules - (ANSWER)The rules contain the day to day activities
- council has the authority to create and amend
Executive Director can suspend license - (ANSWER)- determines the length of suspension
- serves the decision on the industry professional
- will consider the evidence when making the decision
Whats includes in written service agreements? - (ANSWER)- the services to be provided by the
brokerage
- the responsibilities of each party to the agreement
- 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: - (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
How long is license valid if not registered with brokerage? - (ANSWER)36 months
Levels of Disclosure - (ANSWER)1. other party represented by another brokerage
2. other party not represented
3. other party represented by same brokerage
Designated Agency vs Common law - (ANSWER)Designated Agency
- relationship with individual instead of brokerage
- conflict of interest only if agent has an interest in property
Common Law
DETAILED ANSWERS WITH RATIONALES
Which of the following is NOT a RECA educational resource for industry professionals? -
(ANSWER)Spatial Information System (Spin 2)
Which entity has the authority to amend the Real Estate Act - (ANSWER)Provincial Legislature
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 - (ANSWER)Consumer Price Index (CPI)
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? - (ANSWER)an increase in quantity supplied
Microeconics - (ANSWER)studies the basic theories of supply and demand as it relates to individuals,
households and firms
Resource Markets - (ANSWER)facilitate the exchange of factors of production
What causes the quantity demanded to shift? - (ANSWER)change in tastes, expectations, and number
of consumers
benefits of economic growth - (ANSWER)depletion of natural resources
Real Property Report - (ANSWER)document produced by Alberta Land Surveyor
Which of the following is not a non-price determinant of demand - (ANSWER)cost of production
What type of economy does Canada have? - (ANSWER)mixed economy
,Benefits of RECAS trust assurance and practice review program - (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 - (ANSWER)- Handling professional conduct review
- establishing industry standards of practice
- issuing authorization to trade in real estate
Four factors of production - (ANSWER)land, labor, capital, entrepreneurship
RECA provides the following annual reports - (ANSWER)- financial reports
- industry statistics
- reports for the previous year
The structure of real estate in Alberta includes; - (ANSWER)- local real estate boards
- alberta real estate association
- canadian real estate association
Referral definition - (ANSWER)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
RECAS professional conduct review Objects - (ANSWER)- gather all relevant information
- treat parties fairly
-gather information efficiently
Amendments to the Act - (ANSWER)- can be made by provincial legislature with recommendations by
the Minister of Service Alberta
, Amendments to the rules - (ANSWER)The rules contain the day to day activities
- council has the authority to create and amend
Executive Director can suspend license - (ANSWER)- determines the length of suspension
- serves the decision on the industry professional
- will consider the evidence when making the decision
Whats includes in written service agreements? - (ANSWER)- the services to be provided by the
brokerage
- the responsibilities of each party to the agreement
- 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: - (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
How long is license valid if not registered with brokerage? - (ANSWER)36 months
Levels of Disclosure - (ANSWER)1. other party represented by another brokerage
2. other party not represented
3. other party represented by same brokerage
Designated Agency vs Common law - (ANSWER)Designated Agency
- relationship with individual instead of brokerage
- conflict of interest only if agent has an interest in property
Common Law
