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RECA Residential Exam Questions and Answers 100% Pass
Question 1: What are the key elements of fiduciary
representation?
CORRECT ANSWER : Trust and confidence, best interests,
loyalty
Question 2: What are the 5 Ds of Role Clarity?
CORRECT ANSWER : 1. Discuss 2. Determine 3. Document 4.
Disclose 5. Do
Question 3: What must be disclosed in writing according to the
guidelines?
CORRECT ANSWER : - the nature of services provided -
whether professional has entered into representation relationship with other party - any conflicts of interest - any other facts that may influence consumers decision to proceed with relationship
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Question 4: What is the purpose of the written disclosures
mentioned above?
CORRECT ANSWER : made to clarify and provide proof of
understanding in event issues or disputes arise
Question 5: What is the difference between a Written Service
Agreement and Customer Acknowledgement Forms?
CORRECT ANSWER : Written Service Agreement - when
consumer chooses a representation relationship - becomes a client - provide signed copy to brokerage Customer Acknowledgement Forms - non-representation relationship - becomes a customer - provide signed copy to brokerage
Question 6: What does PIPEDA stand for and what is it?
CORRECT ANSWER : PIPEDA - Federal legislation
Question 7: What is PIPA and what does it regulate?
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CORRECT ANSWER : PIPA - Alberta's legislation, how private
organizations use and disclose personal information.
Question 8: What is a Power of Attorney and what are its basic
requirements?
CORRECT ANSWER : a legal document authorizing someone
to act on your behalf - must be 18 - POA must be written, dated and signed by both donor and witness - donor must be mentally capable or contract is void - only effective as long as donor is alive, will takes effect once death
Question 9: What are the different types of Power of Attorney
and their characteristics?
CORRECT ANSWER : General POA - has no limits on powers
of the attorney - can make all decisions regarding financial and legal affairs - exception where the donor resides and health care Special POA - make certain decisions - also called limited POA
- may grant authority to oversee sale, deals with land - must be
registered on Certificate of Title
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Immediate POA - takes effect as soon as POA is signed, dated and witnessed - terminates upon loss of mental capacity or death Enduring POA - immediately upon being signed, dated and witnessed - continues if donor becomes incapable, mentally incapacitated - must include statement whether it takes effect immediately and continues...
Question 10: What is a Judicial Sale?
CORRECT ANSWER : Court ordered sale usually as a way to
resolve legal matters - primary debt recovery method for default mortgages
Question 11: What is Foreclosure?
CORRECT ANSWER : legal action supervised by the court
following a default on the mortgage. - transfers the real property from the borrower to the lender and erases interests on title.