Practice of Property Management- RECA (Real Estate Council of Alberta) Question and Answers [100% Correct] 2025 Latest Version
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Module
RECA
Institution
RECA
Practice of Property Management- RECA
(Real Estate Council of Alberta)
Question and Answers [100% Correct]
2025 Latest Version
Ethical Codes serve to
Establish a set of principles that guide human actions, ensuring they are
both morally just and legally compliant.
When facing an...
Practice of Property Management- RECA
(Real Estate Council of Alberta)
Question and Answers [100% Correct]
2025 Latest Version
Ethical Codes serve to Establish a set of principles that guide human actions, ensuring they are
both morally just and legally compliant.
When facing an ethical dilemma, you can ask yourself the following questions to guide your decision-
making process: 1. Is this the right course of action? Is it fair and truthful?
2. How will my decision affect me emotionally? Will it leave me feeling guilty?
3. Should I choose to act, or should I refrain from taking any action?
Secretly making a profit goes against the fiduciary responsibilities of a property manager to the
property owner, as defined by agency law.
An example of misrepresentation would be claiming that an Anchor tenant has leased a building
when, in reality, they have only shown interest.
Unethical practices in business include: 1. Bribery
2. Secret profits
3. Unsolicited gifts
An agency relationship is the legal connection between a brokerage and its client.
Sole agency occurs when a brokerage signs a formal service agreement with either a property
owner or a prospective tenant but does not represent both parties in the same transaction.
1
,A non-agency relationship exists when either one or both parties are not represented by a
brokerage.
The 4 D's of disclosure are: 1. Decide
2. Disclose
3. Document
4. Do
Common agency disclosure issues include: 1. Breach of fiduciary duty due to failure to disclose
critical information to the owner
2. Non-disclosure of material information, like receiving gifts from tenants or secret profits
3. Misleading facts, such as incorrect renovation details that lead to financial losses for the owner
4. Lack of care in fulfilling responsibilities, like permitting a tenant to move in without tenant insurance,
leading to a fire.
Risk management best practices are: 1. Understand your relationship with clients
2. Be mindful of your words
3. Seek expertise when needed
4. Always put things in writing
5. Establish solid office procedures: ensure security for computer records, supervise staff, and maintain
efficient filing systems.
Potential leasing problem areas include: 1. Structural defects
2. Measurement standards
3. Environmental concerns
4. Non-resident owners
5. Safety risks
The principle that holds a property manager responsible for the actions of their employees is:
Vicarious liability.
2
, Types of insurable losses encompass: 1. Property damage
2. Personal injury
3. Financial loss
Fire protection measures can be categorized into: 1. Active protection
2. Passive protection
A common restriction on insurance payouts is the co-insurance clause, which ensures that the insurance
company is protected if the building is insured for less than its full replacement value. In such cases, if
the owner underinsures the property and files a claim, the insurance company will not pay the full
amount of the loss.
Contract law is a binding agreement between two or more competent parties, enforceable by the courts,
based on mutual consideration of value for a lawful and genuine purpose.
Contract types include: 1. Verbal contracts
2. Contracts made through correspondence
3. Detailed legal documents created for specific purposes.
Contract termination can occur in several ways, such as: 1. Mutual agreement
2. Fulfillment of contractual duties
3. Frustration
4. Operation of law
5. Breach of contract
Remedies for breach of contract may include: 1. Monetary damages
2. Quantum meruit
3. Specific performance
4. Injunction
3
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