RECA Fundamentals: Certified Sample Exam- Updated Question and Answers With Expert Solutions |100% Pass Guaranteed| 2025/2026
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RECA
Institution
RECA
RECA Fundamentals: Certified Sample
Exam- Updated Question and Answers
With Expert Solutions |100% Pass
Guaranteed| 2025/2026
What is the responsibility of a real estate professional in maintaining confidentiality for a client after the
transaction is completed?
They must maintain con...
RECA Fundamentals: Certified Sample
Exam- Updated Question and Answers
With Expert Solutions |100% Pass
Guaranteed| 2025/2026
What is the responsibility of a real estate professional in maintaining confidentiality for a client after the
transaction is completed?
They must maintain confidentiality indefinitely, as stipulated by RECA regulations.
Explain the procedure a real estate professional must follow when a deposit check for a transaction is
returned as NSF (Non-Sufficient Funds).
The professional must notify all parties immediately and take steps to address the issue in
compliance with RECA rules.
What steps must a real estate professional take when representing both the buyer and the seller in a
transaction?
Obtain informed written consent from both parties and ensure impartiality throughout the
process.
How does RECA define "dual agency," and what are the conditions for its legality?
Dual agency occurs when one agent represents both parties in a transaction, and it is only legal
with full disclosure and consent from all parties involved.
What actions should a professional take if they realize a transaction may involve money laundering?
Report the suspicious activity to FINTRAC and follow RECA's anti-money laundering protocols.
Describe the requirements for keeping transaction records digitally under RECA regulations.
Digital records must be secure, accessible, and retained for the required retention period of three
years.
1
,What are the legal implications if a seller fails to disclose a known material latent defect?
The seller may face legal action, and the real estate professional may also be held accountable for
failing to investigate or disclose.
Explain the process for renewing a real estate license in Alberta.
Licensees must complete continuing education requirements, pay renewal fees, and submit the
application through RECA’s online portal.
What is the responsibility of a property manager when preparing annual budgets for a condominium
corporation?
They must ensure accuracy, transparency, and compliance with applicable financial and
condominium regulations.
How does RECA regulate the use of unlicensed assistants in real estate practices?
Unlicensed assistants cannot perform activities that require a license, such as negotiating or
advising on transactions.
Describe the steps involved in terminating a brokerage’s trust account.
All outstanding transactions must be reconciled, clients notified, and the account closed under
RECA supervision.
What must a real estate professional do before showing a property that is tenant-occupied?
Obtain the tenant’s consent and provide adequate notice in compliance with tenancy laws.
Explain the importance of verifying the legal description of a property before completing a transaction.
It ensures accuracy in contracts and prevents potential disputes over ownership or boundaries.
What actions are required when a client requests to withdraw from a real estate transaction before
conditions are waived?
Advise the client of their legal rights and obligations and document the withdrawal in writing.
2
,What is the consequence of a brokerage failing to submit its annual financial audit to RECA on time?
The brokerage may face penalties, including suspension of its license.
How should a real estate professional handle a client who insists on withholding information from a
potential buyer?
Advise the client of their disclosure obligations and refuse to participate in any unethical
behavior.
What is the primary duty of a professional when conducting a Comparative Market Analysis (CMA)?
Provide an accurate and unbiased estimate of the property’s value based on market data.
Explain the legal requirements for disclosing conflicts of interest in a transaction.
The professional must disclose the conflict as soon as it is identified and obtain written
acknowledgment from all parties.
What is the role of RECA’s mandatory continuing education program?
To ensure licensees remain knowledgeable and up-to-date on industry standards and regulations.
How must a professional handle funds received from a client for transaction-related expenses?
Deposit the funds into a trust account and ensure they are used solely for their intended
purpose.
What must be included in a written service agreement between a real estate professional and a client?
The scope of services, fees, duration, and any special conditions.
Describe the process for resolving disputes between a real estate professional and a client.
Disputes should be resolved through open communication, mediation, or, if necessary, through
RECA’s complaint resolution process.
3
, What steps should a real estate professional take when dealing with a power of attorney in a
transaction?
Verify the validity of the power of attorney and ensure the representative has the authority to
act.
Explain the obligations of a professional when marketing a property as “as-is.”
They must still disclose all known material defects and ensure that the buyer is aware of the
condition of the property.
What is required when transferring a property with a title that has encumbrances?
Full disclosure of the encumbrances must be made, and the terms must be included in the
contract.
How does RECA define “trust conditions,” and what is their purpose in real estate transactions?
Trust conditions are legal obligations attached to funds or documents, ensuring they are handled
appropriately.
What steps must be taken when a buyer’s financing is denied after an offer is accepted?
Notify the seller immediately, and determine whether the contract allows for termination or
renegotiation.
Explain the fiduciary duty of loyalty in the context of representing a client in a real estate transaction.
It requires the professional to act in the client’s best interest at all times, avoiding any conflicts of
interest.
What are the legal consequences for a real estate professional who fails to act with competence in a
transaction?
They may face disciplinary action, fines, and possible suspension or revocation of their license.
Describe the process of determining if a property complies with municipal zoning regulations.
4
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