Residential Real Estate RECA: Correctly
Solved Exam *Q&A* (100% Correct)
2025/2026 |VERIFIED|
Explain the primary distinction between a freehold estate and a leasehold estate.
A freehold estate grants ownership rights for an indefinite period, while a leasehold estate
provides possessio...
Residential Real Estate RECA: Correctly
Solved Exam *Q&A* (100% Correct)
2025/2026 |VERIFIED|
Explain the primary distinction between a freehold estate and a leasehold estate.
A freehold estate grants ownership rights for an indefinite period, while a leasehold estate
provides possession for a specific duration based on a lease agreement.
Define the principle of caveat emptor and its impact on real estate transactions.
Caveat emptor, or "buyer beware," places the responsibility on buyers to conduct due diligence
before purchasing property, assuming the seller has not engaged in fraud or misrepresentation.
Describe the fiduciary duties of a real estate agent in a dual agency relationship.
In a dual agency relationship, the agent must remain neutral, providing fair and honest
representation to both parties without favoring one over the other.
How does the concept of latent defects differ from patent defects in real estate disclosure?
Latent defects are hidden issues not discoverable through a standard inspection, while patent
defects are visible and easily identifiable during an inspection.
What are the legal implications of failing to register a property title in the Torrens system?
Failure to register the property title in the Torrens system can result in the buyer lacking legal
recognition of ownership, exposing them to potential disputes.
Explain the difference between exclusive and non-exclusive listing agreements.
An exclusive listing grants the agent sole rights to sell the property within a specific timeframe,
while a non-exclusive listing allows multiple agents to market the property.
Outline the process for calculating a property's adjusted cost base (ACB) for tax purposes.
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, The ACB includes the original purchase price plus any capital expenditures, such as renovations or
legal fees, used to determine taxable gains upon sale.
Discuss the importance of the zoning bylaw compliance certificate in real estate transactions.
The zoning bylaw compliance certificate ensures that the property adheres to local zoning
regulations, protecting the buyer from potential legal issues or fines.
What is the purpose of a real property report (RPR) in residential transactions?
A real property report verifies the property's boundaries, structures, and compliance with
municipal regulations, offering clarity to both buyers and sellers.
Explain how adverse possession can affect residential property ownership.
Adverse possession allows a person to claim legal ownership of a property if they have occupied
it openly and continuously for a statutory period without the owner's consent.
Discuss the consequences of misrepresentation in a property listing.
Misrepresentation can lead to legal actions, contract rescission, and financial penalties for the
seller or their agent if the inaccuracies materially impact the buyer’s decision.
Identify the key components of a mortgage pre-approval and their significance in a home purchase.
A mortgage pre-approval includes the loan amount, interest rate, and term, providing the buyer
with a clear budget and stronger negotiating position.
Explain the process for addressing encroachments identified in a real property report.
Encroachments are resolved through mutual agreements, modifications, or legal remedies such
as easements to protect both parties' interests.
How does a seller’s market differ from a buyer’s market, and what strategies should buyers adopt in
each?
In a seller’s market, demand exceeds supply, favoring sellers. Buyers should act quickly and make
competitive offers. In a buyer’s market, supply exceeds demand, enabling buyers to negotiate more
favorable terms.
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