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RECA Residential Unit 1 study test revision questions with correct answers
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RECA Residential Unit 1 study test revision questions with correct answers
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RECA Residential Unit 1 study testrevision questions with correct answers
3 fundamental principles of fiduciary duty. AKA the 3 principles that give rise to fiduciary duties
in a representation relationship: - ANS Trust and Confidence, Best Interests, Loyalty
8 General Obligations of REPs - ANS Exercise Care and Skill, Act Honestly, Negotiate
Favourable terms, Maintain Confidentiality, Disclose Information, Act in Person, Obey Lawful
Instructions, Perform Mandate
6 Points of Fiduciary Duties - ANS Provide Utmost Loyalty, Not make secret profits, Handle
Confident Information Properly, To Account, Avoid conflicts of interest, Disclose conflicts of
interest.
"To Account" meaning - ANS Real estate professionals must account for all money and/or
property belonging to the client. This duty compels a real estate professional to safeguard all
money, documents, property, and information entrusted to them that relate to the client's
transaction.
"arm's length transaction" meaning - ANS In real estate, an arm's length transaction is when
the buyer and seller each act in their own self-interest to try to get the best deal they can.
4 common examples of deals that are not arm's length transactions - ANS Sales between
friends or family members
Sales between an employer and his or her employees
Sales between a parent company and one of its subsidiaries
Sales between a trust and its beneficiaries
2 options if REP cannot provide competent service to a client - ANS Be Supervised, Refer
To determine if a REP has met the standard of care in a given situation, an objective review of
all facts is performed. 3 measures to determine if that has been met. - ANS Professional
Standards, Professional Norms and Practices, Expert Testimony
"Expert Testimony" Meaning - ANS Other real estate professionals, or experts, may provide
information as to the expectations of a reasonable and prudent real estate professional and how
they would have conducted themselves in similar circumstances.
9 points in "Meeting the Standard of Care" - ANS 1. Know the Type of Consumer
Relationship 2. Act consistent with the relationship chosen 3. Know the Brokerage Service 4.
Know the brokerage Policies and procedures 5. Be Aware of Market and Practical Issues 6.
, Make Reasonable Efforts to Confirm information 7. Exercise Due care when preparing
documents 8. Seek Advice when appropriate 9. Be a Lifelong learner
When is written disclosure needed? - ANS Whenever a REP receives or is about to receive
confidential information; including the consumer's real estate needs, motivation, or financial
ability.
4 things that must be included in written disclosure - ANS 1. Whether the REP has entered
into a representation relationship with another party to the real estate transaction 2. The service
the REP will provide the consumer 3. Any conflicts of interest that may exist between the
consumer and the REP 4. Any additional facts or information that may influence the consumer's
decision to proceed with the real estate relationship.
Which guide must REPs practicing residential real estate must REPs provide to consumers for
relationship disclosures (the guide includes all information REPs must include in written
disclosures under the Rules) - ANS RECA's Consumer Relationship Guide
For needed when non-representation relationship is selected by consumer (then becoming a
customer) - ANS Customer acknowledgement form
Form needed when representation relationship is chosen by consumer (then becoming a client)
- ANS Written Service Agreement
Does RECA's consumer relationships guide, customer Acknowledgement forms and written
service agreements contain mandatory content? Can it be changed? - ANS Yes. Although
these documents may be changed at the request of a consumer or tailored to the needs of a
brokerage (eg. logo added, broker information added), content, meaning and intent must not be
altered.
Representation relationships are NOT established by the following 4 actions - ANS 1. REP
conveying documents or providing general information to consumers 2. REP using certain terms
to refer to consumers (eg client customer) 3. Consumers using certain terms to refer to REP
(eg. Real estate agent, lease agent, buyers agent) 4.Consumers paying remuneration (ie
commission, fees) to the REP's brokerage
5Ds of Role Clarity and Consistency (5 words) - ANS 1. Discuss 2. Determine 3. Document
4. Disclose 5. Do
Longer explanations of the 5Ds of Role Clarity and Consistency (sentences) - ANS 1.
Discuss the Real estate relationship 2. Determine your representative capacity 3. Document
your representative capacity in writing 4. Disclose your representative capacity (ie. seller's
agent, buyer's agent, landlord's agent, or tenant's agent) 5. Do actions with your representative
capacity consistent with your established relationship
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