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RECA Residential Unit 4 with complete verified solutions
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RECA Residential Unit 4 with complete verified solutions
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RECA Residential Unit 4 withcomplete verified solutions 2025-
2026
3 Types of property defects - answer Patent, Latent, Material latent
What are Patent defects (on a property)? - answer obvious flaw
discovered upon reasonable inspection. caveat emptor applies
(meaning that the buyer should have inspected enough to find
anything like this). Unless the seller provides information or
warranties regarding the patent defects, it is the buyers
responsibility to address them.
What are Latent defects (on a property)? - answer Latent defects
are physical deficiencies that do not render the property dangerous
or potentially dangerous, so caveat emptor applies.
Latent (or hidden). A true latent defect is one that is not known to
either the seller or buyer at the time of the sale.
Liability becomes an issue when it can be proven that a defect was
known to the seller but could not have been discovered by the
buyer, even upon a reasonable inspection.
What are material latent defects (on a property)? - answer A
material latent defect is a "hidden" defect that materially (largely)
affects the use or value of the property.
Material latent defects are of significance because the seller is
aware of them but the buyer will not discover them through a
reasonable inspection. These effects may render the property
,dangerous or potentially dangerous, unfit for habitation or unfit for
the purpose that the buyer is acquiring it.
What is caveat emptor? - answer Let the buyer beware. However,
this rule is often violated; people are often required to speak up
Two types of patent defects - answer Minor and material
8 examples of Minor patent defects - answer Broken window pane,
damage to entry walkway/stairs, Ill-fitting or damaged doors, ill-
fitting windows, cracks in cement driveway, stained/damaged walls
and ceilings, worn or damaged flooring, worn or damaged
faucets/fixtures.
7 examples of Material patent defects - answer Roof requiring re-
shingling, Large windows with broken seals, cracked heat exchanger
in furnace, easily observable foundation deterioration, property
located in flood hazard area, property located near a fertilizer plant,
property condemned by Alberta Health Services.
What are material patent defects? - answer defects that could pose
serious health and/or safety concerns for occupants or visitors to
the property.
5 examples of Latent defects - answer 1. a hole in drywall hidden
from view by a wall hanging. 2. A dent in hardwood flooring hidden
from view by an area carpet 3. Broken window latch hidden from
view by window covering 4. Water stains on carpeting hidden from
view by a large plant stand 5. Damage to the inside wall of a
bedroom closet hidden from view by clothes.
8 examples of material latent defects - answer 1. Significant
structure damage that has been concealed 2. Notices from local
authorities that prejudicially affect the property 3. Any renovation
or repair work that lacks required/appropriate permits from the
,local municipality or other authority 4. Concealed crack in the
foundation wall 5. Concealed electrical wiring improperly installed 6.
Environmental contamination not remediated and is concealed 7.
Properties formerly used as marijuana grow op or drug lab what
were renovated but not professionally remediated 8. Corroded post-
tension cables
If the buyer is not represented, it is the seller's REP to communicate
material latent defects to the unrepresented buyer? - answer Yes,
as it in the best interest of the seller (or else the buyer may sue the
seller if it is not made clear).
What does misrepresentation refer to? - answer a false or
misleading statement or representation made by one party to
another
3 types of misrepresentation - answer negligent, reckless and
intentional
Negligent Misrepresentation - answer a false or misleading
statement made by a person, who believed it to be true, and where
the person carrying out the misrepresentation took reasonable
steps to assure the accuracy of the statement
Reckless Misrepresentation - answer false or misleading statement
made by a person who had not intended to mislead but failed to
take reasonable steps to confirm the statement's truthfulness or
accuracy
In general property inspectors should have in-depth knowledge on
the following 6 areas - answer 1. New and old building service
systems 2. How different building service systems interact 3. Causes
and effects of building systems deterioration and remedies 4.
Applicable legislation 5. Hazardous material 6. Current safety
standards
, In Alberta who governs residential property inspectors and
inspection businesses? - answer The Fair Trade Act, Home
Inspection Business Regulation
How to determine if a property inspector or business is currently
licensed? - answer Visit Service Alberta website at
servicealberta.ca
What is the Property Inspection Request form and what does it
include? - answer RECA created the Property Inspection Request
form to assist REPs in educating their clients about property
inspections. The form includes a list of the various inspections and
reports available to buyers.
What is an ESA? - answer Environmental Site Assessment. To
determine if a property is contaminated
True or False - An ESA Phase 1 assessment does not typically involve
lab testing or items like paint, soil, air, or moisture. - answer True,
that is done in Phase 2
What is the ESAR? - answer Environmental Site Assessment
Repository. An online searchable database that provides scientific
and technical information about assessed and/or reclaimed sites
throughout Alberta.
4 activities when performing due diligence that REPs should also
complete - answer 1. Convey to clients and document in writing
information received from others including situational details such
as where and when the conversation occurred. 2. Retain copies of
due diligence activities provided to clients for the brokerage records
3. Never express opinions regarding matters such as what the client
should or should not do and what will or will not occur in the future.
4. If the client seeks an opinion beyond your expertise, advise the
client to seek legal advice and/or advice from an appropriate expert.
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