RECA Residential- Practice Exam (100% Correct and Accurate) Graded A+ |Verified| 2025
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Course
RECA
Institution
RECA
RECA Residential- Practice Exam (100%
Correct and Accurate) Graded A+
|Verified| 2025
What document is required to verify that a seller has legal ownership of the property being sold?
A. Home inspection report
B. Certificate of title
C. Real estate appraisal
D. Purchase agreem...
RECA Residential- Practice Exam (100%
Correct and Accurate) Graded A+
|Verified| 2025
What document is required to verify that a seller has legal ownership of the property being sold?
A. Home inspection report
B. Certificate of title
C. Real estate appraisal
D. Purchase agreement
When representing a buyer, which clause in a purchase agreement protects them from unforeseen
repairs?
A. Contingency clause
B. Financing clause
C. Completion clause
D. Inspection clause
What is the primary purpose of a holdback in a real estate transaction?
A. To compensate the real estate agent
B. To cover closing costs
C. To ensure contractual obligations are fulfilled
D. To pay property taxes
Which of the following is considered a latent defect?
A. A cracked foundation hidden behind drywall
B. A roof visible from the street with missing shingles
C. An outdated electrical system noted in the listing
D. An unpermitted basement suite disclosed by the seller
1
,What is the role of the Real Estate Council of Alberta (RECA) regarding real estate professionals?
A. To negotiate commission rates for agents
B. To regulate, educate, and enforce industry standards
C. To provide property valuation services
D. To approve residential building permits
In Alberta, what is the purpose of a Real Property Report (RPR)?
A. To assess the market value of the property
B. To document the history of title transfers
C. To outline zoning restrictions
D. To confirm boundary locations and improvements
Which of the following scenarios would require a buyer to pay a deposit?
A. At the time of mortgage approval
B. After the property inspection
C. At the time of possession
D. When submitting a purchase offer
What must a seller disclose under the RECA guidelines?
A. The reason for selling the property
B. The number of offers they have received
C. Known material latent defects
D. Their profit margin from the sale
Which of the following agreements allows multiple agents to market a property, but only the agent who
brings the buyer earns a commission?
A. Open listing agreement
B. Exclusive agency agreement
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, C. Net listing agreement
D. Sole agency agreement
When determining the value of a property, which of these factors would NOT be considered?
A. Location of the property
B. Seller's personal financial situation
C. Size of the property lot
D. Recent comparable sales
What is a significant consequence of a "time is of the essence" clause in a real estate contract?
A. Allows flexible deadlines for contract terms
B. Voids the contract if any term is violated
C. Makes deadlines legally enforceable
D. Extends closing dates if necessary
Under Alberta law, what is a buyer entitled to when a property is discovered to have undisclosed latent
defects after the sale?
A. A reduced property tax assessment
B. Automatic contract renewal
C. Full refund of the purchase price
D. Potential legal remedies such as damages or contract rescission
If a seller breaches a real estate contract, what remedy is most commonly pursued by the buyer?
A. Refund of the deposit
B. Specific performance to enforce the sale
C. Arbitration through RECA
D. Imposition of punitive damages
Which insurance policy protects a buyer from defects in title or ownership disputes?
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