RECA EXAM –with 100% verified solutions 2024-2025, Exams of Advanced Education

Download RECA EXAM –with 100% verified solutions 2024-2025 and more Exams Advanced Education in PDF only on Docsity! RECA EXAM –with 100% verified solutions Which of the following may RECA amend from time to time? A) The Act B) The Rules C) The Regulations D) All the statements are correct B According to the Act, which of the following statements apply if an industry professional whose conduct is subject to disciplinary proceedings make application to withdraw from the profession? A) If the application is approved, RECA issues a news release B) If the application is approved, all disciplinary proceedings are terminated C) If the application is approved, it is a lifetime ban from all industry professions governed by RECA D) All the statements are correct D According to the Rules, which of the following statements is correct regarding written service agreements? A) Written service agreements must clearly indicate the names of all parties to the agreement B) All industry professionals are required to have written service agreements in place with all clients C) If a client refuses to sign a written service agreement, the industry professional must refuse services to that client D) All the statements are correct A A real estate professional's authorization to trade in real estate expired on September 30. However, the real estate professional continued to show properties on behalf of a property management company for which she received compensation. Given her actions breached a section of the Rules and were deemed to be potentially serious, which of the following disciplinary outcomes would the real estate professional receive? A) Consent Agreement B) Letter of Reprimand C) Temporary Suspension D) Administrative Penalty D Which privacy legislation affects how Alberta real estate professionals handle client information? Privacy Information Act Right to Personal Privacy Act Personal Information Protection Act Personal Information Protection and Electronic Documents Act A) Statements I and II B) Statements I and IV C) Statements II and III D) Statements III and IV D When the licence of a real estate brokerage is suspended, what actions must real estate professionals who are registered with the brokerage take? A) They must cease to trade in real estate B) They must cancel their authorization with RECA C) They must apply for withdrawal from the profession D) They must become registered with another brokerage A Which of the following Professional Conduct Review outcomes is issued as a practice guideline for a technical breach of the legislation? A) Advisory Note B) Production Order C) Letter of Reprimand D) Administrative Penalty A 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? A) Disclosure level 1 B) Disclosure level 2 C) Disclosure level 3 D) No disclosure level B A) Statements I, II, and III B) Statements II, III and IV C) Statements I, III and IV D) All statements apply A Which of the following statements are correct regarding real estate brokerages and privacy law? All brokerages within Alberta must comply with federal privacy legislation Brokerages must designate a Privacy Officer to be accountable for compliance Brokerages with privacy policies are not required to designate a Privacy Officer Brokerage privacy policies must be consistent with the applicable privacy legislation A) Statements I and II B) Statements II and III C) Statements II and IV D) Statements III and IV Next Question C Which of the following terms relates to the right of individuals to have control over their personal information? A) Privacy B) Exclusivity C) Inaccessibility D) Confidentiality A Which of the following statements describe benefits of REIX to the real estate profession? REIX enhances the image of the profession REIX has the potential to save on insurance costs The profession is active in managing the program and its risks Real estate professionals are protected against legal action from clients A) Statements I, II and III B) Statements I, III and IV C) Statements II,III and IV D) All statements apply A Which of the following is correct regarding the Occupational Health and Safety Act and the Occupational Health and Safety Code? A) This legislation applies to employees but not independent contractors B) This legislation includes information helpful to employees and independent contractors C) This legislation outlines employer's responsibilities for ensuring health and safety D) All are correct regarding this legislation D Brokers who use the VBRP typically have experience in which of the following roles? A) As mediators B) As arbitrators C) As negotiators D) As defendants C Which of the following statements best describe the concept of confidential information? It is information that the brokerage has deemed to be confidential It is information individuals identify to others as being confidential It may include both personal information and business information It is not readily available information which may have some sort of value A) Statements I and II B) Statements II and III C) Statements II and IV D) Statements III and IV D Which of the following is NOT considered a frequent cause of conflicts and disputes? A) Assumptions made by real estate professionals B) Admissions made by real estate professionals C) Omissions made by real estate professionals D) Commissions made by real estate professionals B Which of the following are benefits of professional courtesy? It helps avoid legal proceedings against real estate professionals It helps avoid a professional conduct review being conducted by RECA It helps avoid the issuance of disciplinary outcomes by RECA It helps avoid claims being made against REIX A) Statements I, II and III B) Statements II, III and IV C) Statements I, III and IV D) All statements apply D According to the Rules, which of the following should occur before a real estate professional may act as a transaction facilitator? They must verbally agree to act as a transaction facilitator with each client They must enter into a written transaction brokerage agreement with each client The clients must have the opportunity to review their respective transaction brokerage agreement before signing it The clients must have the opportunity to get any questions answered before signing their respective transaction brokerage agreement A) Statements I, II, and III B) Statements II, III, and IV C) Statements I, III, and IV D) All statements apply B Which of the following measures are used to determine the standard of care for real estate professionals? A) Professionals standards B) Professional norms and practices C) Expert testimony D) All measures are used D Which of the following statements indicate the 3 fundamental principles upon which fiduciary duties are based? Loyalty Best interests Act in person Trust and confidence A) Statements I, II and III B) Statements II, III and IV C) Statements I, III and IV D) Statements I, II and IV D Which of the following describes the party being represented by another party in a representation relationship? A) Agent B) Third party C) Principal D) Customer C When are fiduciary duties owed by a real estate professional? A) As soon as they receive confidential information from a client B) As soon as they establish a representation relationship with a customer C) As soon as they enter into a written service agreement with a customer D) As soon as they are granted express authorities from a client A Which of the following categories of brokerage services involves numerous services that require the greatest level of discretion or judgement? A) Mere posting service B) Limited brokerage services C According to the Municipal Government Act, a municipality establishes bylaws that classify how land within its jurisdiction may be used. What are these classifications referred to as in the bylaws? A) Land use zones B) Land use districts C) Land use categories D) Land use developments B According to the Municipal Government Act, what is a ‘mill rate’? A) The amount of assessed value paid by commercial mills B) The amount per thousand dollars of assessed value of property C) The percentage of property taxes in a particular municipality D) The percentage of property taxes as part of municipal revenues Next Question B What is an encroachment? A) An item that is built on an adjoining property B) A right acquired by one party to use the land of another C) A notice that someone is claiming an interest in the land D) All of these are encroachments A Which of the following is an example of an encumbrance? A) A mortgage registered for a loan against a property B) A caveat that details the nature of a limitation on a property C) A lien that identifies a claim on a property for payment of a debt D) All are examples of an encumbrance D An owner of a property has diverted groundwater without having received authority from the Alberta Government. According to the Water Act, what requirement must be met for the individual to be able to divert water? A) A water permit is required B) A water licence is required C) A water easement is required D) A water agreement is required B What is the purpose of the Land Titles Assurance Fund? A) To protect lenders if the borrower defaults on the mortgage loan B) To protect borrowers if their mortgage is registered on the wrong title C) To provide owners compensation if they suffer a loss due to an error on title D) To provide owners compensation if their title is destroyed for any reason C Why should real estate professionals be aware of Alberta's Environmental Protection and Enhancement Act in terms of their practice? A) The statute is part of the growing interest in environmentally friendly practices and procedures B) The statute requires property owners to examine ways to conserve energy and recycle waste C) The basic audit level is becoming more prevalent in commercial and industrial transactions D) The consumer interest in environmentally-friendly residential properties has been increasing C On what basis does the right of rescission operate in regards to the purchase of a unit? A) The buyer's failure to take possession of the unit on the closing date B) The buyer's dissatisfaction with the condominium documents C) The buyer's dissatisfaction with the property inspection D) The buyer's failure to obtain adequate financing for the purchase B 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 A) Statements I, II, and III B) Statements I, III, and IV C) Statements II, III, and IV D) All the statements A Which of the following are NOT activities included in a Cash Flow Statement for a condominium corporation? A) Operating revenues and expenses B) Long-term investments that were sold C) Loans taken against the common property D) Contingent liabilities for financial exposures D Which of the following is the best definition for the term condominium? A) Living in common with others B) Being responsible with others C) Living in close proximity to others D) Ownership in common with others D Which statement best describes post-tension cables? A) A construction system that involves interconnected cables B) A construction method that reinforces concrete C) A construction method that reinforces posts with cables D) A construction system that puts posts under tension B In which of the following situations would a condominium corporation NOT need to pass a special resolution? A) To use Reserve Fund monies for improvements B) To make a change to the bylaws C) To levy a special assessment on all units D) To buy or sell components of the common property C How often must a condominium corporation hold an annual general meeting? A) Within 12 months of the last one B) Within 15 months of the last one C) Within 18 months of the last one D) Within 20 months of the last one B Which statement is correct regarding the number assigned to a Condominium Plan? A) Indicates the total number of units in the condominium B) Indicates the year the Plan was registered at Alberta Land Titles C) Is an arbitrary number assigned when the Plan is submitted D) Is a number assigned by the Alberta Land Surveyor who drew the Plan B The bylaws of the condominium corporation may be changed from time to time. Bylaw changes may be passed at which type of meeting? A) Extraordinary meetings of the condominium corporation B) General meetings of the condominium corporation C) Annual general meetings of the condominium corporation D) At all of these meetings bylaw changes may be passed D Under the legislation, the right of rescission is best described by which statement? A) The ability of purchasers to cancel their purchase contract with a developer B) The ability of purchasers to cancel their purchase contract with a reseller C) The ability of purchasers to cancel their purchase contract with any seller D) The ability of purchasers to cancel their purchase contract for any reason A Which Principle of Value is represented by the following formula: Net income - operation expenses A) Principle of Surplus Productivity B) Principle of Anticipation C) Principle of Highest and Best Use D) Principle of Supply and Demand A Which of the following statements is NOT correct regarding real estate professionals performing property valuations? A) They may provide these services to clients or potential clients B) The service must relate to a trade or potential trade in real estate C) The service may be for the financing of a property as part of a transaction D) The property valuation may only relate to the current market value C 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 A) Statements I, II, and III B) Statements I, III, and IV C) Statements II, III, and IV D) All statements apply A 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 A) Statements I, II, and III B) Statements II, III, and IV C) Statements I, III, and IV D) All statements apply D Which Principle of Value allows adjustments to be made to the sale price of comparable properties? A) The Principle of Substitution B) The Principle of Balance C) The Principle of Contribution D) The Principle of Anticipation C If more apartment buildings are added in one area than the community can support, one or more of them will yield lower than expected revenues and profits. This scenario is an example of which Principle of Value? A) Principle of Change B) Principle of Substitution C) Principle of Conformity D) Principle of Balance D Which of the following statements best describes what is being referred by: "The basic test is whether or not the comparable could be equivalent to the subject property in the mind of the typical buyer, subject to some adjustments?" A) The rationale for the Principle of Contribution B) The process for making adjustments to comparable properties C) The rationale for the Principle of Substitution D) The guideline for selecting appropriate comparable properties D Which of the following statements best describes 'fraud for housing'? A) A buyer who completes a purchase contract for a property using an inflated amount B) A buyer who purchases a property with the intention of using it for criminal activities C) A buyer who uses illegal funds as part of the down payment for the purchase of a property D) A buyer who attempts to qualify for mortgage financing by falsifying or misrepresenting information required by the lender D Zack wants to buy a house, but does not have enough of his own funds to cover the gap between the required down payment and the amount for which he qualifies. He notices an ad offering houses for sale with 'low down payments' and calls the number. Herbert, a mortgage investor, answers the call and tells Zack that he can advance him the required funds and register a mortgage once the title transfers. He tells Zack this is a private arrangement and not to mention it to any mortgage lenders. What is this scheme called? A) False deposit B) Secret second C) Equity access D) Debt-consolidation B From a brokerage perspective, which of the following is NOT a mortgage fraud prevention best practice? A) Ensure training on RECA's mortgage fraud red flags detection and prevention is implemented B) Ensure training on the office policies and procedures for mortgage fraud detection and prevention is implemented C) Ensure the office policies and procedures for mortgage fraud detection and prevention are submitted to RECA for review D) Ensure the office policies and procedures for mortgage fraud detection and prevention are reviewed and updated C Personal Trades in Real Estate Disclosure Level 1 Other party represented by another brokerage. Personal Trades in Real Estate Disclosure Level 2 Other party not represented by real estate professional. Personal Trades in Real Estate Disclosure Level 3 Other party represented by same brokerage. Real Estate Assurance Fund Helps to protect consumers when working with Real Estate Professionals. Pays if a professional commits fraud, breach of trust or failed to disburse monies held in trust. Land The ground and that which is beneath and above it. Property The rights inherent in the ownership of a commodity. Real Estate The unimproved or raw land plus any improvements that are fixed to the land. Real Property Refers to the land, any permanent improvements to the land, and the property rights that go with the land. Encumbrance Registered interests that affect the title of the land. Easement Provides right of way for a party to use the land of another. Caveat A notice or warning that relates to an interest in the land. Encroachment Occurs when part of a structure is built on adjoining land. Restrictive Covenant