Download RECA CH1 QUIZ 2024: Multiple Choice Questions and Answers and more Exams Real Estate Management in PDF only on Docsity!
RECA CH1 QUIZ 2024
100% SOLVED
"which of the following types of authority allow an agent to undertake any activities needed to carry out an express authority? A. legal authority B. implied authority C. customary authority
D. functional authority - CORRECT ANSWER implied authority"
"when are fiduciary duties owed by a real estate professional? A. as soon as they receive confidential information from a client B. as soon as they establish a representation relationship with a customer C. as soon as they enter into a written service agreement with a customer
D. as soon as they are granted express authorities from a client - CORRECT ANSWER as soon as they
receive confidential information from a client" "which of the following situations describes the concept of duress? A. when one party revokes an offer prior to its acceptance B. when one party fails to disclose a material latent defect C. when one party waives a right or interest in real property
D. when one party enters into a contract due to threat or violence - CORRECT ANSWER when one
party enters into a contract due to threat or violence"
"Which of the following is NOT a non-price determinant of demand? A. Market size B. Costs of production C. Availability of credit
D. Consumers' disposable income - CORRECT ANSWER Costs of production"
"Which of the following statements is correct regarding the resource markets? A. they measure the total output of an economy B. they determine the level of supply and demand C. they measure the level of consumer confidence
D. they facilitate the exchange of the factors of production - CORRECT ANSWER they facilitate the
exchange of the factors of production" "Which of the following is correct regarding designated agency? A. it applies brokerage-wide B. it varies with the transaction C. it is practised by all brokerages
D. it does not require service agreements - CORRECT ANSWER it applies brokerage-wide"
"which of the following types of authority allow an agent to act according to the usual ways of performing an action as established by the profession? A. express authority B. implied authority C. customary authority
D. functional authority - CORRECT ANSWER customary authority"
"if a real estate professional has any concerns or doubts regarding whether or not a fact is pertinent to a client, they should take which of the following actions?
"According to the Rules, which of the following statements is correct regarding written service agreements? A. written service agreements must clearly indicate the names of all parties to the agreement B. all industry professionals are required to have written service agreements in place with all clients C. if a client refuses to sign a written service agreement, the industry professional must refuse services to that client
D. all answers are correct - CORRECT ANSWER written service agreements must clearly indicate the
names of all parties to the agreement" “Which of the following indicators are used to calculate Gross Domestic Product (GDP)? I. Imports II. Consumer Spending III. Business Spending
IV. Net income from foreign residents - CORRECT ANSWER Statements I, II and III"
"Which of the following statements is an example of an appropriate incentive? A. a brokerage offers the use of its moving van to attract new business B. a brokerage agrees to pay the seller's legal fees to make the sale C. a real estate professional offers free travel miles to attract new business
D. all answers are correct - CORRECT ANSWER a brokerage offers the use of its moving van to attract
new business" "Prime Plus Real Estate Brokerage Ltd. advertises on its website that, "we will pay the real estate appraisal fee for sellers who list their property within the next 30 days!". Which statement best describes this advertisement? A. this ad is an example of an incentive B. this ad is an example of an inducement C. this ad is a guaranteed sales representation
D. this ad must be approved by RECA before being posted - CORRECT ANSWER this ad is an example of
an incentive" "According to the Act, which of the following statements apply if an industry professional whose conduct is subject to disciplinary proceedings make application to withdraw from the profession? A. if the application is approved, RECA issues a news release B. if the application is approved, all disciplinary proceedings are terminated C. if the application is approved, it is a lifetime ban from all industry professions governed by RECA
D. all answers are correct - CORRECT ANSWER all answers are correct"
"What is the process that real estate professionals should carry out regarding the renewal of their registration with the brokerage? A. they must complete the Associate/Associate Broker Application for Registration by the deadline B. they should confirm their authorization status after the deadline C. they must complete any re-licensing education requirements by the deadline
D. all answers are correct - CORRECT ANSWER all answers are correct"
"Melanie is an industry professional who is licensed and registered in both real estate and mortgage brokerage. She is disciplined by the local real estate board on a matter relating to a real estate trade. according to the Rules, what action should Melanie take? A. Melanie has 30 days to notify the Executive Director of the discipline B. Melanie is required to notify the clients she is representing of the discipline C. Melanie must immediately notify the Executive Director of the discipline
D. Melanie does not need to notify RECA because the real estate board will advise them - CORRECT
ANSWER Melanie must immediately notify the Executive Director of the discipline"
"The Rules set out the circumstances when the Executive Director may refuse to issue a licence or registration. Which of the following statements best describes such a circumstance? A. the applicant is not of good character
B. where moral development is based on social roles and relationships C. where moral development is based on the individual's perceived self-interest
D. where moral development is based on individual reflection and analysis of the issues - CORRECT
ANSWER where moral development is based on individual reflection and analysis of the issues"
"What is the maximum amount the Real Estate Assurance Fund may pay per claimant for damages or losses related to the services of a real estate professional? A. $100,000 maximum B. $35,000 maximum C. $25,000 maximum
D. no maximum amount - CORRECT ANSWER $35,000 maximum"
"Which of the following statements best defines ethics? A. values and beliefs held by an individual that guides their actions B. set of guidelines which are personally based and unique to each individual C. standards that are the same as the law and to which individuals should adhere
D. all answers are correct - CORRECT ANSWER values and beliefs held by an individual that guides their
actions" "What is the generally accepted test for whether or not a real estate professional's conduct is deserving of sanction? A. is the real estate professional acting on advice from others, such as fellow real estate associates? B. is the real estate professional aware of the Act and the Rules and have they complied with the, C. how would other competent real estate professions conduct themselves in a similar situation
D. how long has the real estate professional been authorized to trade in real estate - CORRECT
ANSWER how would other competent real estate professions conduct themselves in a similar situation"
"Which statement represents the various influences on the ethical decisions of a real estate professional?
I. Canadian law and federal legislation II. the Act, the Rules, and the Regulations III. Ethics of he industry or profession
IV. Brokerage ethics and personal ethics - CORRECT ANSWER all answers are correct"
"which of the following statements are correct regarding personal information collected before the applicable privacy legislation came into effect? I. it is legacy information and not subject to the legislation II. it is legacy information and considered to be collected with consent III. it may be used without consent for other purposes than it was first collected
IV. it may be used for a new purpose other than original purpose if new consent is obtained - CORRECT
ANSWER statements II and IV"
"which of the following statements describe benefits of REIX to the real estate profession? I. REIX enhances the image of the profession II. REIX has the potential to save on insurance costs III. the profession is active in managing the program and its risks
IV. real estate professionals are protected against legal action from clients - CORRECT ANSWER
statements I, II, and III" "which of the following statements best describe the concept of confidential information? I. it is information that the brokerage has deemed to be confidential II. it is information individuals identify to others as being confidential III. it may include both personal information and business information
IV. it is not readily available information which may have some sort of value - CORRECT ANSWER
statements III and IV" "which of the following is NOT a continuous learning or practice improvement activity initiated by real estate professionals?
I. a buyer purchases a property without first viewing it II. a buyer purchases a property in the name of another person III. a buyer uses cash to purchase a property
IV. a buyer is slow to confirm their identity - CORRECT ANSWER statements I, II and III"
"To which of the following activities does PIPEDA apply? I. federally regulated commerce II. international and inter-provincial commerce III. commerce where there is similar provincial privacy legislation
IV. commerce where there is no provincial privacy legislation - CORRECT ANSWER statements I, II and
IV"
"which of the following statements are correct regarding real estate brokerages and privacy law? I. all brokerages within Alberta must comply with federal privacy legislation II. brokerages must designate a Privacy Officer to be accountable for compliance III. Brokerages with privacy policies are not required to designate a Privacy Officer
IV. Brokerage privacy policies must be consistent with the applicably privacy legislation - CORRECT
ANSWER statements II and IV"
"which of the following is NOT considered a frequent cause of conflicts and disputes? A. assumptions made by real estate professionals B. admissions made by real estate professionals C. omissions made by real estate professionals
D. commissions made by real estate professionals - CORRECT ANSWER admissions made by real estate
professionals" "how many brokers may be licensed with a real estate brokerage?
A. 1 broker B. 1 broker and 1 associate broker C. 1 broker and 1 broker delegate
D. 1 broker and 1 alternate broker - CORRECT ANSWER 1 broker"
"which of the following criteria are used to determine if an advertisement is misleading? A. the general impression that the advertisement creates B. whether the advertisement influenced the purchasing decision C. if the advertisement omitted important information
D. all answers are correct - CORRECT ANSWER all answers are correct"
"which of the following categories of brokerage services involves numerous services that require the greatest level of discretion or judgement? A. mere posting service B. limited brokerage services C. full brokerage services
D. property management services - CORRECT ANSWER property management services"
"which of the following describes what is meant by unlawful instruction? A. any instruction that goes against the customs of the trade B. any instruction that is contrary to the law C. any instruction that is irrational
D. any instruction that is reasonable and ordinary under the circumstances - CORRECT ANSWER any
instruction that is contrary to the law" "which of the following describes what is meany by a lawful instruction? A. any instruction that is given in writing
B. implied authority C. customary authority
D. functional authority - CORRECT ANSWER functional authority"
"which of the following describes a lawful revocation? A. it occurs when either the principal or agent terminates the representation relationship even though both parties have fulfilled their responsibilities B. it occurs when either the principal or agent fails to fulfil their responsibilities to the other party who terminates the representation relationship as a result C. it occurs when either the principal or agent provide the other party with written notice that they have decided to terminate the representation relationship D. it occurs when either the principal or agent terminates the representation relationship because they
are no longer authorized by RECA to trade in real estate - CORRECT ANSWER it occurs when either the
principal or agent fails to fulfil their responsibilities to the other party who terminates the representation relationship as a result" "which of the following statements is a benefit of designated agency? I. it is consistent with consumer expectations II. the brokerage can represent more consumers III. it allows the broker to advocate for clients to the trade
IV. the brokerage can resolve more conflicts of interest - CORRECT ANSWER statements I, II and IV"
"of the following, what must a transaction facilitator disclose to the clients to the trade? I. to the buyer, the seller's motivation for offering the property for sale II. to the buyer, all known material latent defects affecting the property III. to the seller, the amount the buyer is willing to pay for the property
IV. to the seller, the facts as to the buyer's ability to purchase the property - CORRECT ANSWER
statements II and IV"
"according to the Rules, which of the following should occur before a real estate professional may act as a transaction facilitator? I. they must verbally agree to act as a transaction facilitator with each client II. they must enter into a written transaction brokerage agreement with each client III. the clients must have the opportunity to review their respective transaction brokerage agreement before signing it IV. the clients must have the opportunity to get any questions answered before signing their respective
transaction brokerage agreement - CORRECT ANSWER statements II, III and IV"
"which of the following describes an unlawful revocation? A. it occurs when either the principal or agent terminates the representation relationship even though both parties have fulfilled their responsibilities B. it occurs when either the principal or agent fails to fulfil their responsibilities to the other party who terminates the representation relationship as a result C. it occurs when either the principal or agent provide the other party with written notice that they have decided to terminate the representation relationship D. it occurs when either the principal or agent terminates the representation relationship because they
are no longer authorized by RECA to trade in real estate - CORRECT ANSWER it occurs when either the
principal or agent terminates the representation relationship even though both parties have fulfilled their responsibilities" "which of the following gives rise to a conflict of interest in brokerages that practice agency under the common law or designated agency? A. multiple real estate professionals represent multiple clients with competing interests B. two different real estate professionals represent clients with opposing interests C. one real estate professional represents current clients with opposing interests
D. one real estate professional represents one client and works with a customer - CORRECT ANSWER
one real estate professional represents current clients with opposing interests"
"a contract is defined as "a binding agreement enforceable in the courts, made between two or more persons, competent at law to enter into such agreement, for consideration or value, to do or refrain from doing some lawful and genuinely intended act". according to this definition, which of the following statements is correct? A. contracts for the sale or purchase of real property are not enforceable B. contracts do not have to be in writing to be enforceable C. contracts cannot be enforced between a married couple
D. contracts must be registered on title to be enforceable - CORRECT ANSWER contracts do not have
to be in writing to be enforceable" "which of the following statements is correct regarding the remedy of quantum meruit? A. the injured party cannot claim damaged for any loss incurred B. the injured party is entitled to the reasonable failure of the services performed C. the injured party is released from his or her contractual obligations
D. the injured party is compelled by court order to fulfill his or her contractual obligations - CORRECT
ANSWER the injured party is entitled to the reasonable failure of the services performed"
"which of the following situations is an example of an injunction? A. the court forces a party to complete is contract with the another party B. the court prevents the party from selling the property to another party C. the court forces a landlord to pay the tenant damages for ending the lease without cause
D. a tenant does basic repairs on a property and sues the landlord for reimbursement - CORRECT
ANSWER the court prevents the party from selling the property to another party"
"Rodney has applied for a mortgage through Regional Mortgage Brokers Ltd. The mortgage associate there explains that the term of the mortgage is foe 3 years and Rodney is in agreement While signing the mortgage document with the lawyer, Rodney sees that the term is for 5 years. Rodney does not mention the misunderstanding and accepts the 5-year term. Based on an understanding of contracts, what type of mistake is this? A. common mistake
B. mutual mistake C. unilateral mistake
D. misrepresentation of fact - CORRECT ANSWER unilateral mistake"
"Sara, a real estate professional, is meeting with Joe who is acting on a Power of Attorney that authorises him to sell a parcel of a land owned by his incapacitated mother. Which type of Power of Attorney would Joe be required to have in order for the transaction to proceed? A. special power of attorney B. general power of attorney C. enduring power of attorney
D. extended power of attorney - CORRECT ANSWER special power of attorney"
"which of the following statements is correct regarding breach of contract? A. the damages are the amount suffered plus an amount to punish the party that breached B. the injured party must actually have suffered damages as a result of the breach of contract C. the party guilty of the breach must take all reasonable steps to mitigate the damages
D. all answers are correct - CORRECT ANSWER the injured party must actually have suffered damages
as a result of the breach of contract" "Margaret has provided her 2 daughter with Power of Attorney which includes the phrase "severally and jointly" when making decisions on her behalf. What is the legal implication of including this wording? A. the daughters will have to make decisions together B. the daughters will have to make decisions separately C. the daughters will be individually liable for any decisions made
D. the daughters will share the liability for any decision made - CORRECT ANSWER the daughters will
have to make decisions separately" "in which situation does the Dower Act potentially apply?
D. Marie can prepare the promotional information without any supervision as she was once an industry
professional - CORRECT ANSWER Marie can prepare the promotional information if Michael approves
all the work she completes" "A real estate professional's authorization to trade in real estate expired on September 30. However, the real estate professional continued to show properties on behalf of a property management company for which she received compensation. Given her actions breached a section of the Rules and were deemed to be potentially serious, which of the following disciplinary outcomes would the real estate professional receive? A. Consent Agreement B. Letter of Reprimand C. Temporary Suspension
D. Administrative Penalty - CORRECT ANSWER Administrative Penalty"
"On June 15th, Cory successfully completed the final education exam required by RECA to become licensed as a real estate professional. How long does he have to become registered with a real estate brokerage before the completion of the education requirement is no longer valid? A. Until September 30 that year B. Until December 31 that year C. Until June 14 the following year
D. Until June 15 the following year - CORRECT ANSWER Until June 14 the following year"
"Which of the following best describes a written acknowledgement? A. it should state that the consumer received and understands the written disclosure made by a real estate professional B. it should state that the consumer has received confidential information to the real estate professional C. it should state that the consumer has chosen to establish a non-representation relationship with the real estate professional D. it should state that the consumer has chosen to establish a presentation relationship with the real
estate professional - CORRECT ANSWER it should state that the consumer received and understands
the written disclosure made by a real estate professional"
"which of the following is NOT a capacity for which an agent must have express authority from a principal in order to act? A. capacity to contract B. capacity to delegate C. capacity to incur expenses
D. capacity to account - CORRECT ANSWER capacity to account"
