RECA Exam Study Guide Questions And Answers
Verified 100% Correct
Statements I, II, and III - ANSWERS Which of the following statements are associated
with the Principle of Highest and Best Use?
Legal permissibility based on municipal land use classifications and bylaws
Physical potential of the land based on its size, shape, and topography
Financial feasibility and maximum productivity potential for development
Political possibility based on the ability to achieve development approvals
All Statements Apply - ANSWERS Why is the value of a property based on a property
valuation often different from that of a property assessment?
Assessments are based on sales as far back as a year ago
Property valuations rely on the most recent sales
Assessments are done for taxation as opposed to a sale
Assessments use a different process referred to as mass appraisal
I, II, III - ANSWERS Which of the following indicators are used to calculate the Gross
Domestic Product (GDP)?
Imports
Consumer spending
Business spending
Net income from foreign residents
Disclosure level 3 - ANSWERS Stan, a real estate professional registered with
McAgent Real Estate Brokerage has just listed his commercial property for lease with
his brokerage. Jim, another real estate professional registered with the same brokerage
tells Stan that he has a client interested in leasing the property. What level of disclosure
is required in this situation?
Disclosure Level 2 - ANSWERS Mary, a real estate professional registered with ABC
Real Estate Brokerage, has agreed to purchase her neighbour's ranch. The seller of the
property is not represented by a real estate professional. What level of disclosure does
Mary need to provide?
I, II, & III - ANSWERS Which of the following statements include actions that may be
considered suspicious by a real estate brokerage? A buyer purchases a property
without first viewing it
A buyer purchases a property in the name of another person
A buyer uses cash to purchase a property
A buyer is slow to confirm their identity
, B) It occurs when either the principal or agent fails to fulfil their responsibilities to the
other party who terminates the representation relationship as a result - ANSWERS
Which of the following describes a lawful revocation?
Statements I, II, and IV - ANSWERS Which of the following statements is a benefit of
designated agency?
It is consistent with consumer expectations
The brokerage can represent more consumers
It allows the broker to advocate for clients to the trade
The brokerage can resolve more conflicts ofinterest
The injured party must actually have suffered damages as a result of the breach of
contract - ANSWERS Which of the following statements is correct regarding breach of
contract?
If 2 individuals own a property, they both have an equal interest in the property as a
whole - ANSWERS Which statement is correct if a property is held in joint tenancy?
Statements I, II, and III - ANSWERS When owners rent or lease their units, which of
the following may be required of the owners by the condominium corporation?
Names of the tenants and the amount of the rent they will pay
Address of service and a deposit equal to one month's rent
Dates for the start and end of the rental/lease agreement
Permission from the condominium corporation to rent/lease the unit
Principle of Change - ANSWERS Which Principle of Value identifies how economic,
social, and political factors effect property values?
An increase in the quantity supplied - ANSWERS 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?
The Rules - ANSWERS Which of the following may RECA amend from time to time?
To protect real estate professionals when they make a mistake regarding their business
activities - ANSWERS What statement best describes why real estate professionals
have errors and omissions insurance?
As negotiators - ANSWERS Brokers who use the VBRP typically have experience in
which of the following roles?
Both clients provide their informed consent - ANSWERS Transaction brokerage may
only proceed if which of the following occurs?
Verified 100% Correct
Statements I, II, and III - ANSWERS Which of the following statements are associated
with the Principle of Highest and Best Use?
Legal permissibility based on municipal land use classifications and bylaws
Physical potential of the land based on its size, shape, and topography
Financial feasibility and maximum productivity potential for development
Political possibility based on the ability to achieve development approvals
All Statements Apply - ANSWERS Why is the value of a property based on a property
valuation often different from that of a property assessment?
Assessments are based on sales as far back as a year ago
Property valuations rely on the most recent sales
Assessments are done for taxation as opposed to a sale
Assessments use a different process referred to as mass appraisal
I, II, III - ANSWERS Which of the following indicators are used to calculate the Gross
Domestic Product (GDP)?
Imports
Consumer spending
Business spending
Net income from foreign residents
Disclosure level 3 - ANSWERS Stan, a real estate professional registered with
McAgent Real Estate Brokerage has just listed his commercial property for lease with
his brokerage. Jim, another real estate professional registered with the same brokerage
tells Stan that he has a client interested in leasing the property. What level of disclosure
is required in this situation?
Disclosure Level 2 - ANSWERS Mary, a real estate professional registered with ABC
Real Estate Brokerage, has agreed to purchase her neighbour's ranch. The seller of the
property is not represented by a real estate professional. What level of disclosure does
Mary need to provide?
I, II, & III - ANSWERS Which of the following statements include actions that may be
considered suspicious by a real estate brokerage? A buyer purchases a property
without first viewing it
A buyer purchases a property in the name of another person
A buyer uses cash to purchase a property
A buyer is slow to confirm their identity
, B) It occurs when either the principal or agent fails to fulfil their responsibilities to the
other party who terminates the representation relationship as a result - ANSWERS
Which of the following describes a lawful revocation?
Statements I, II, and IV - ANSWERS Which of the following statements is a benefit of
designated agency?
It is consistent with consumer expectations
The brokerage can represent more consumers
It allows the broker to advocate for clients to the trade
The brokerage can resolve more conflicts ofinterest
The injured party must actually have suffered damages as a result of the breach of
contract - ANSWERS Which of the following statements is correct regarding breach of
contract?
If 2 individuals own a property, they both have an equal interest in the property as a
whole - ANSWERS Which statement is correct if a property is held in joint tenancy?
Statements I, II, and III - ANSWERS When owners rent or lease their units, which of
the following may be required of the owners by the condominium corporation?
Names of the tenants and the amount of the rent they will pay
Address of service and a deposit equal to one month's rent
Dates for the start and end of the rental/lease agreement
Permission from the condominium corporation to rent/lease the unit
Principle of Change - ANSWERS Which Principle of Value identifies how economic,
social, and political factors effect property values?
An increase in the quantity supplied - ANSWERS 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?
The Rules - ANSWERS Which of the following may RECA amend from time to time?
To protect real estate professionals when they make a mistake regarding their business
activities - ANSWERS What statement best describes why real estate professionals
have errors and omissions insurance?
As negotiators - ANSWERS Brokers who use the VBRP typically have experience in
which of the following roles?
Both clients provide their informed consent - ANSWERS Transaction brokerage may
only proceed if which of the following occurs?
