RECA Residential Exam 100% correct
Answers [VERIFIED]
**Fiduciary Representation**
**Ans** Fiduciary representation involves trust and confidence. A fiduciary is required to act in the best
interests of the client, maintaining loyalty throughout the relationship.
**5 Ds of Role Clarity**
**Ans** Role clarity is achieved by first having a discussion to identify roles, determining the
responsibilities of each party, documenting the agreements, disclosing relevant information, and then
following through with the agreed actions.
**Must Disclose in Writing**
**Ans** Professionals are required to disclose, in writing, the nature of the services they will provide.
This includes whether they have entered into any representation agreements with other parties,
potential conflicts of interest, and any other important facts that may influence a client’s decision to
engage in the relationship. These disclosures are essential to clarify any misunderstandings and serve as
proof in case of future disputes.
**Written Service Agreement vs Customer Acknowledgement Forms**
**Ans** A Written Service Agreement is used when a consumer chooses to establish a representation
relationship, at which point they become a client. A signed copy of this agreement is provided to the
brokerage. On the other hand, a Customer Acknowledgement Form is used in a non-representation
relationship, where the individual is considered a customer. This form is also signed and submitted to the
brokerage.
**PIPEDA**
**Ans** PIPEDA refers to the federal legislation governing how personal information is used and
disclosed by private organizations across Canada.
**PIPA**
**Ans** PIPA is the legislation specific to Alberta that outlines the regulations on how private
organizations handle and disclose personal information.
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,**Power of Attorney**
**Ans** A Power of Attorney (POA) is a legal document that authorizes an individual to act on behalf of
another. To grant a POA, the person must be at least 18 years old, and the document must be signed and
dated by both the donor and a witness. The donor must also be mentally capable, as the POA will be
void if they are not. This authorization remains effective only while the donor is alive; after their death,
the donor’s will takes effect.
**Types of Power of Attorney**
**Ans** A General Power of Attorney grants broad authority, allowing the attorney to make decisions
regarding financial and legal matters, except for the donor’s residence and healthcare. A Special Power
of Attorney, also known as a limited POA, restricts the attorney’s authority to specific tasks, such as
overseeing a sale or dealing with land, which must be registered on the Certificate of Title. An Immediate
Power of Attorney takes effect immediately once signed and remains valid until the donor loses mental
capacity or dies. An Enduring Power of Attorney also takes effect immediately but continues even if the
donor becomes mentally incapacitated, provided the document includes a statement specifying that it
remains in effect under those circumstances.
**Judicial Sale**
**Ans** A judicial sale is a sale ordered by the court, typically used to resolve legal issues, particularly in
situations where a mortgage is in default and debt recovery is needed.
**Foreclosure**
**Ans** Foreclosure is a legal process overseen by the court that occurs after a borrower defaults on a
mortgage. Through this process, the property is transferred from the borrower to the lender, and any
other interests on the title are removed.
**Alberta Building Code**
**Ans** The Alberta Building Code sets out the technical standards and specifications that must be
followed for new building construction and the materials used.
**Building Permit**
**Ans** A building permit generally remains valid for one year, during which time the construction must
begin.
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, **Factory-Built Construction**
**Ans** Manufactured construction involves assembling three sections that are almost fully complete
when they leave the factory. Once delivered to the site, they are secured to the foundation and joined
together. This type of construction saves both time and money, allowing residents to move in within
days. Modular construction involves manufacturing three-dimensional units that are mostly complete
when they leave the factory, though final assembly on site takes a few weeks. This method allows for the
construction of multi-story buildings. Panelized construction refers to the creation of prefabricated wall,
floor, or roof panels. These panels can range from partially completed frames to fully finished
components with windows and siding installed.
Alberta Safety Codes Act **Ans**provincial legislation that sets specifications for new building.
Components of Construction **Ans**Lot
Substructure - building foundation
Superstructure - above grade construction
includes; envelope, service systems, interior
- building envelope - everything that encloses the structure
- roof, exterior walls, windows, doors, and interior walls
- building service systems - supply's essential services
- heat, electricity, water
- interior - interior walls, features, finishes, and fixtures
Pre-wired
- security systems, internet, fireplace controls, windows
Preserved Wood foundation **Ans**treated wood, must be certified with a stamp.
- must be examined by engineer or architect stating conforms to the Alberta Building Code requirements
- poured concrete is the most common foundation
Subsurface Drainage **Ans**Drain tiles - directs water to storm system or sump pit
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