RECA FUNDAMENTALS EXA LATEST 2023 -2024
REAL EXAM QUESTIONS AND CORRECT
ANSWERS| ALREADY GRADED A+
Which of the following will occur to the supply of a good when there is a change in quantity supplied due to a price increase? - ANSWER- an increase in quantity supplied
Microeconics - ANSWER- studies the basic theories of supply and demand as it relates to individuals, households and firms
Resource Markets - ANSWER- facilitate the exchange of factors of production
What causes the quantity demanded to shift? - ANSWER- change in tastes, expectations, and number of consumers
benefits of economic growth - ANSWER- depletion of natural resources
Real Property Report - ANSWER- document produced by Alberta Land Surveyor
Which of the following is not a non-price determinant of demand - ANSWER- cost of production
What type of economy does Canada have? - ANSWER- mixed economy
Benefits of RECAS trust assurance and practice review program - ANSWER- - effective record keeping and administrative procedures
- education and advice in relation to brokerage trust accounting
- identifies and resolves potential problems regarding brokerage trust accounting
requirements
Responsibilities of RECA - ANSWER- - Handling professional conduct review
- establishing industry standards of practice
- issuing authorization to trade in real estate
Four factors of production - ANSWER- land, labor, capital, entrepreneurship
RECA provides the following annual reports - ANSWER- - financial reports 1 / 3
- industry statistics
- reports for the previous year
The structure of real estate in Alberta includes; - ANSWER- - local real estate boards
- alberta real estate association
- canadian real estate association
Referral definition - ANSWER- The act of recommending or directing a person for service to another person or business
- brokerage is responsible for paying and receiving remuneration in connection to
trade
RECAS professional conduct review Objects - ANSWER- - gather all relevant information
- treat parties fairly
-gather information efficiently
Amendments to the Act - ANSWER- - can be made by provincial legislature with recommendations by the Minister of Service Alberta
Amendments to the rules - ANSWER- The rules contain the day to day activities
- council has the authority to create and amend
Executive Director can suspend license - ANSWER- - determines the length of suspension
- serves the decision on the industry professional
- will consider the evidence when making the decision
Whats includes in written service agreements? - ANSWER- - the services to be provided by the brokerage
- the responsibilities of each party to the agreement
- the names of the parties to the agreement
failure to immediately notify Executive Director of changes to information
provided in support of license results in: - ANSWER- - Exec. Director may refer
the matter for a professional conduct review
- Exec. Director may suspend industry professionals license
- Exec. director may cancel the industry professionals license
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How long is license valid if not registered with brokerage? - ANSWER- 36 months
Levels of Disclosure - ANSWER- 1. other party represented by another brokerage
- other party not represented
- other party represented by same brokerage
Designated Agency vs Common law - ANSWER- Designated Agency
- relationship with individual instead of brokerage
- conflict of interest only if agent has an interest in property
Common Law
- agency relationship exists
- conflict of interest extends to whole brokerage
- must be disclosed
Inducement vs incentives - ANSWER- - Inducement is client specific
- incentives must be offered by brokerage to everyone
If industry professional withdraws from profession during disciplinary proceedings
- ANSWER- - RECA issues a news release
- all disciplinary proceedings terminated
- lifetime ban from all industry professions governed by RECA
Advisory Notes - ANSWER- Technical breach of legislation
- ex. forgetting brokerage name on marketing
Letters of Reprimand - ANSWER- - where cases of conduct deserving sanction is less serious
- agent has also received an advisory note
Administrative penalties - ANSWER- - actions breached a section of rules and deemed potentially serious
Approaches to complaints agent agent - ANSWER- - Advisory notes
- technical breach
- letter of reprimand
- less serious, already received advisory note
- Administrative penalty
- potentially serious
- hearings
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