Residential Specifics (RECA) *Q&A*
(100% Correct) 2025/2026 |VERIFIED|
What is the primary responsibility of a real estate agent under the Real Estate Council of Alberta (RECA)
when dealing with residential transactions?
The primary responsibility is to ensure that all parties to the transa...
Residential Specifics (RECA) *Q&A*
(100% Correct) 2025/2026 |VERIFIED|
What is the primary responsibility of a real estate agent under the Real Estate Council of Alberta (RECA)
when dealing with residential transactions?
The primary responsibility is to ensure that all parties to the transaction understand their rights
and obligations, provide honest and professional service, and comply with relevant laws and regulations.
Explain the key difference between a "seller's representative" and a "buyer's representative" under RECA
guidelines.
A seller's representative works to market the property, negotiate the sale, and protect the seller's
interests, while a buyer's representative assists the buyer in finding a suitable property, negotiating the
purchase, and ensuring the buyer's interests are protected.
How does RECA define “fiduciary duty” in the context of residential real estate transactions?
Fiduciary duty requires the real estate professional to act in the best interest of their client,
providing full disclosure, confidentiality, loyalty, and obedience to the client's instructions.
What steps should a real estate professional take to avoid conflicts of interest when representing both
the buyer and the seller in a residential transaction?
The real estate professional must obtain written consent from both parties, disclose any potential
conflicts, and ensure that both parties are treated fairly and equitably.
Under the RECA Code of Conduct, what are the expectations regarding the disclosure of material facts by
a real estate professional?
Real estate professionals must disclose any material facts that could affect the value or
desirability of the property, including issues like structural problems, legal disputes, or financial
encumbrances.
What is the definition of “dual agency” under RECA, and why is it considered controversial in residential
real estate transactions?
1
, Dual agency occurs when the same real estate professional represents both the buyer and the
seller. It is controversial because it creates potential conflicts of interest, making it difficult for the agent
to fully advocate for both parties.
What are the requirements for a real estate professional when providing a Comparative Market Analysis
(CMA) to a client?
The agent must provide an accurate, honest, and clear CMA based on recent, relevant sales data
and ensure that the client understands the limitations and assumptions of the analysis.
How does the RECA regulate advertising by real estate professionals in residential transactions to ensure
compliance with industry standards?
Advertising must be truthful, not misleading, and comply with the RECA Code of Conduct,
including proper representation of the agent's qualifications and affiliations.
What role does the real estate professional play in the negotiation process of residential sales, according
to RECA guidelines?
The real estate professional must facilitate negotiations between the buyer and seller, ensure
that both parties understand the terms, and work to achieve an agreement that is in the best interest of
their client.
What is the importance of a “listing agreement” in a residential transaction, and what are the key
elements it must include under RECA regulations?
A listing agreement outlines the terms of the relationship between the seller and the agent,
including the listing price, commission structure, duration of the agreement, and the agent's
responsibilities.
What are the consequences for a real estate professional if they fail to uphold their obligations under the
RECA Code of Conduct during a residential transaction?
The professional may face disciplinary actions such as suspension, fines, or revocation of their
license, depending on the severity of the violation.
Explain the concept of “earnest money” in residential real estate transactions and how it is handled
according to RECA regulations.
2
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