RECA PRACTICE EXAM QUESTIONS: EXPERT SOLUTIONS INCLUDED |100% ACCURATE| 2025/2026
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Course
RECA
Institution
RECA
RECA PRACTICE EXAM QUESTIONS:
EXPERT SOLUTIONS INCLUDED |100%
ACCURATE| 2025/2026
1. **What is the legal requirement for a real estate professional when dealing with "unregistered
interests" in a property sale in Alberta?**
The agent must disclose any unregistered interests, such as enc...
RECA PRACTICE EXAM QUESTIONS:
EXPERT SOLUTIONS INCLUDED |100%
ACCURATE| 2025/2026
1. **What is the legal requirement for a real estate professional when dealing with "unregistered
interests" in a property sale in Alberta?**
The agent must disclose any unregistered interests, such as encumbrances or easements, to the
buyer, ensuring transparency and full knowledge before the transaction.
2. **Explain the role of RECA in regulating real estate advertising and marketing. What rules must a real
estate professional follow to ensure their marketing is compliant?**
RECA requires that all advertising and marketing materials be truthful, not misleading, and
comply with the Real Estate Act. Agents must ensure that representations of properties are accurate,
and disclaimers are included where necessary.
3. **How should a real estate agent handle a situation where a buyer refuses to complete a property
inspection despite the agent’s advice to do so?**
The agent should document the advice given and ensure the buyer understands the risks
associated with not conducting an inspection. While the buyer has the final say, the agent should
maintain their professional duty of care by offering guidance.
4. **What is the significance of the “Real Estate Assurance Fund” in Alberta, and when can a claim be
made against it?**
The Real Estate Assurance Fund provides compensation to consumers who suffer financial loss
due to the fraudulent or unprofessional conduct of a real estate professional. Claims can be made when
there is direct financial loss due to unethical practices by an agent.
5. **Discuss the concept of "material fact" in real estate transactions and its importance to the seller,
buyer, and agent.**
A material fact refers to information that could influence a buyer’s decision to purchase a
property, such as known defects or zoning issues. The agent must disclose all material facts to both the
buyer and seller to ensure compliance with the duty of disclosure.
1
, 6. **In a multiple offer situation, how should a real estate agent ethically disclose competing offers to
the seller, ensuring fairness to all parties?**
The agent must disclose all offers to the seller, ensuring that each offer is presented without
bias. They must act in good faith, offering advice without revealing confidential information about
competing offers unless authorized by the seller.
7. **What are the specific duties of a real estate agent when handling earnest money deposits in
Alberta?**
The agent must hold earnest money deposits in a trust account and ensure that the funds are
only disbursed according to the terms of the contract. Mismanagement of funds can lead to disciplinary
actions by RECA.
8. **How can a real estate professional legally manage conflicts of interest when working with multiple
clients, including dual agency situations?**
In dual agency situations, the agent must disclose the conflict of interest to both parties and
obtain written consent from all clients involved. The agent must remain neutral, avoid favoritism, and
prioritize confidentiality.
9. **What is the importance of a “property disclosure statement,” and what are the consequences of
failing to provide one in a real estate transaction?**
A property disclosure statement provides detailed information about the condition of the
property. Failing to provide it can result in legal consequences for the seller and may lead to claims for
misrepresentation if undisclosed defects are discovered.
10. **Explain how a real estate agent should handle the situation when a buyer expresses interest in a
property with a legal encumbrance, such as a lien or unpaid taxes.**
The agent should advise the buyer to investigate the encumbrance, explain the possible impacts
on the sale, and encourage consultation with a lawyer to understand the legal ramifications before
proceeding with the transaction.
11. **What are the potential risks and liabilities associated with misrepresentation of a property’s
square footage or condition?**
Misrepresentation can result in legal action, fines, or the cancellation of the transaction. The
agent could be held liable for damages caused by false or misleading statements, and may face
disciplinary action from RECA.
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