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RECA Practice Exam (residential) Study (2025) comprehensive questions and verified answers (Detailed & Elaborated) ACTUAL EXAM 2025 TEST 100% Solved 2025!!

Essential Elements of a Contract - Legal object, capacity of both parties, consideration, intent to contract, genuine consent, mutual agreement Discharged contract - was valid and has now ended privity of contract - - legal actions can only be taken by contracting parties - only original parties are bound by contract Powers of Attorney - General - has no limits, can make financial and legal decisions - cannot make decisions about health care and where they reside

Advisory Notes - Technical breach of legislation - ex. forgetting brokerage name on marketing Letters of Reprimand - - where cases of conduct deserving sanction is less serious - agent has also received an advisory note Administrative penalties - - actions breached a section of rules and deemed potentially serious Approaches to complaints agent agent - - Advisory notes - technical breach - letter of reprimand - less serious, already received advisory note - Administrative penalty - p...

Which of the following is NOT a RECA educational resource for industry professionals? Ans: Spatial Information System (Spin 2) Which entity has the authority to amend the Real Estate Act Ans: Provincial Legislature Which of the following measures the change in a cost of a fixed basket of goods and services purchased by families over a period of time Ans: Consumer Price Index (CPI) Which of the following will occur to the supply of a good when there is a change in quantity suppli...

Real Estate Ans: refers to the land and fixed improvements to the land Classes of licence Ans: associate, associate broker, broker and brokerage four areas of practice Ans: residential, commercial, property management and mortgage Industrial property Ans: include warehouses and custom-built manufacturing plants. Residential income property 2 | P a g e Ans: include low-rise and high-rise apartments, duplexes, fourplexes and townhouses supply and demand Ans: characteristic that...

Carl, a real estate professional, is registered with Prime Plus Real Estate Ltd. He has listed his brother's house for sale with the brokerage. A real estate professional with another brokerage contacts Carl and asks to preview the property as she has a potential buyer. What level of disclosure must Carl provide? Ans: Disclosure level 1 When evaluating an ethical dilemma, the first step is awareness. An individual may become aware of an ethical dilemma through a variety of ways...

What does Fee Simple mean? Ans: 'Fee' means the land can be inherited and 'simple' means the inheritance is unqualified as to who can inherit it. Bundle of rights include (x4) Ans: Possession (to occupy and keep out others) Control (to alter the property physically) Enjoyment (no interference from others) Disposition (to convey all or part to another) leased fee or leased fee estate Ans: A fee simple estate that is subject to a lease is referred to as a leased fee or l...

Commercial real estate assets have a number of attributes that make them unique relative to other types of investments. These attributes include the following: (x10) 2 | P a g e Ans: 1. They involve land 2.Transaction time frames are long 3. Transaction costs are high 4. they are expensive 5. They are long lasting 6. Highly regulated 7. have a long production cycle 8. are management intensive 9. are heterogeneous 10. Involve measuring return on investment 1. Long-lasting, Durabl...

Real Estate Ans: Refers to the raw land plus any improvements that are permanent or fixed to the land. Real Property Ans: Refers to the tangible attributes of the land (Real Estate) as well as the intangible rights of ownership What are some characteristics of land? Ans: Durable, Rigid, Immobile, Unique, Scarce Fee Simple 2 | P a g e Ans: The highest interest in real estate recognized by the law; the holder is entitled to all rights to the property. Leasehold Ans: Grants a t...

Structure - Roof Ans: -Transfers roof loads to rafters, trusses and joists - Ultimately transfers loads to bearing walls and framing -Roof covering protects the roof sheathing Structure - Framing/floors Ans: -Balloon or platform construction -Floor provides continuous pad for framing Structure - Walls 2 | P a g e Ans: -Carry weight of roof and floor to the foundation -Wall structure varies based on type of framing Structure - Footings/foundation Ans: Transmits the weight of the s...