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RECA Residential Unit 9 Questions with 100% Verified Answers
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RECA Residential Unit 9 Questions with 100% Verified Answers
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RECA Residential Unit 9 Questions with 100%Verified Answers
True or False - There is only one residential purchase contract that may be used for each type of
property and agency set up. - ✅✅False. contracts may be available from a variety of sources,
such as the brokerage, trade association, local real estate board, paper/electronic forms
providers, or a real estate lawyer.
The purchase contract typically stipulates that unlerss otherwise agreed to in writing but the
parties to the transaction, the title will be free and clear of all encumbrances and obligations
except the following (x4) - ✅✅1. Those items that are implied by law
2. Easements, utility rights-of-way, and covenants (as they run with the land)
3. Homeowner Association caveats, encumbrances and similar regulations (as they run with the
land)
4. Any other items the buyer agreed to assume in the purchase contract.
When is the initial deposit made by the buyer usually deposited? - ✅✅When the initial deposit
will be deposited, the rules require that it will be no later than the third business day after the
final signing of the purchase contact occurred.
Is interest due on purchase deposits? - ✅✅Generally no. No interest on the deposits will be
paid to the buyer or seller unless specified otherwise.
What happens if the brokerage holding trust funds ceases to be licensed by RECA to trade in
real estate? - ✅✅The buyer and seller agree to allow the trust funds to be transferred to the
brokerage representing the other party.
, Interest on deposits - ✅✅Interest may be paid to the buyer if added to the contract
negotiation. Until the day of closing, deposit is still the buyer's funds, held in trust.
The organization holding the buyer's deposit in trust will have a policy as to paying interest on
deposits, generally specifying the minimum amount of deposit funds and the minimum amount
of time these funds must be held to qualify for any interest. A rate of interest for funds held in
trust is usually prescribed as well.
Should changes in commission agreement or similar changes be added to a purchase contract?
- ✅✅No, REPs are not parties to the purchase contract. Any renegotiation of compensation
related to the transaction must be addressed through an amendment to the service agreement
between the respective client and their REP.
True or false - In general, Alberta residential real estate contracts use conditions precedent. -
✅✅True. This mean that a condition must be waived in writing before it's expiry date in order
for it to be removed as an impediment to the transaction.
4 potential outcomes for any condition in a purchase contract. - ✅✅Expiry, removal, non-
removal, extension
Another way to refer to an unconditional sale - ✅✅firm sale
True or false - A condition must be satisfied in order for it to be waived - ✅✅False. The party
protected by the condition may choose to move forward/waive the condition even though the
results of the condition are not satisfactory
Is it possible for the buyer or seller to withdraw their offer/counter-offer? - ✅✅Yes, so long as
it has not already been accepted. Time is of the essence and documents must be clearly sent
before an offer is accepted.
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