RECA Fundamentals Exam Questions and

RECA Fundamentals Exam Questions and Answers Already Passed

Question 1: Which of the following is NOT a RECA

educational resource for industry professionals?

CORRECT ANSWER : Spatial Information System (Spin 2)

Question 2: Who is responsible for producing the "Real

Property Report"?

CORRECT ANSWER : Alberta Land Surveyor

Question 3: 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

Question 4: Responsibilities of RECA

CORRECT ANSWER: - Handling professional conduct review

• establishing industry standards of practice
• issuing authorization to trade in real estate

Question 5: Four factors of production

CORRECT ANSWER : land, labor, capital, entrepreneurship

Question 6: RECA provides the following annual reports

CORRECT ANSWER : - financial reports

• industry statistics
• reports for the previous year

Question 7: 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)

Question 8: 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

Question 9: 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

Question 10: 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

Question 11: Length of time a license is valid for if NOT

registered w a brokerage

CORRECT ANSWER : 36 months

Question 12: Level of Disclosure: Other party represented by another brokerage

CORRECT ANSWER : Level 1

Question 13: Level of Disclosure: Other party not represented

CORRECT ANSWER : Level 2

Question 14: Level of Disclosure: Other party represented by same brokerage

CORRECT ANSWER : Level 3

Question 15: Inducement vs incentives

CORRECT ANSWER : - Inducement is client specific

• Incentive is offered by the brokerage to any potential client

Question 16: 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

Question 17: Personal Ethics

CORRECT ANSWER : Morals - held by individual

Ethics - Standard of Conduct (values/beliefs that guide actions) Professional Standards - Rules and Regulations

Question 18: Real Estate Insurance Exchange (REIX)

CORRECT ANSWER : - provides financial protection