RECA RESIDENTIAL UNIT 1, RECA RESIDENTIAL UNIT 2, RECA
RESIDENTIAL UNIT 3, RECA RESIDENTIAL UNIT 4, RECA
RESIDENTIAL UNIT 5, RECA RESIDENTIAL UNIT 6, RECA
RESIDENTIAL UNIT 7, RECA RESIDENTIAL UNIT 8, RECA
RESIDENTIAL UNIT 9 | COMPLETE QUESTIONS AND CORRECT
ANSWERS | BRAND NEW| 2024 | 100% PASS TEST BANK.
3 fundamental principles of fiduciary duty. AKA the 3 principles that give rise to fiduciary
duties in a representation relationship: - Trust and Confidence, Best Interests, Loyalty
8 General Obligations of REPs - 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 - Provide Utmost Loyalty, Not make secret profits, Handle
Confident Information Properly, To Account, Avoid conflicts of interest, Disclose
conflicts of interest.
"To Account" meaning - 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 - 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 - 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 - 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. -
Professional Standards, Professional Norms and Practices, Expert Testimony
"Expert Testimony" Meaning - 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" - 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? - 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 - 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) - RECA's Consumer Relationship Guide
For needed when non-representation relationship is selected by consumer (then
becoming a customer) - Customer acknowledgement form
Form needed when representation relationship is chosen by consumer (then becoming
a client) - Written Service Agreement
Does RECA's consumer relationships guide, customer Acknowledgement forms and
written service agreements contain mandatory content? Can it be changed? - 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 - 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) - 1. Discuss 2. Determine 3. Document
4. Disclose 5. Do
Longer explanations of the 5Ds of Role Clarity and Consistency (sentences) - 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
6 Benefits of Role Clarity and Consistency - 1. Meets Regulatory Requirements 2.
Enhances professionalism 3. Prevents Unintended relationships 4. Clarifies
responsibilities to consumers 5. Clarifies services to consumers 6. Reduces disputes
True or False - Making referrals is a fiduciary duty that REPs owe to clients - False
True or False - the standard of care for a REP in a particular set of circumstances is
determined subjectively - False
"subjectively" meaning - In a way that is based on personal feelings, tastes, or
opinions.
"Objectively" meaning - in a way that is not influenced by personal feelings or opinions.
Defined in the Rules, what does confidential information include (3 things in specific) -
Any information concerning the client including the client's financial or personal
situation, the client's real estate, and transactions involving the client.
What does commercial activity refer to? - Any transaction, act, or conduct involving the
exchange of goods and/or services.
Is Buying/selling/leasing considered commercial activity? - Yes, the purchase, sale, or
leasing of real estate is considered a commercial activity
In Alberta the protection of individuals' personal information during real estate
transactions is regulated by which privacy legislation (x2) - PIPEDA (The Personal
Information Protection and Electronic Document Act) and PIPA (The Personal
Information Protection Act)
Is PIPEDA a provincial or a Federal legislation? - Federal
Does PIPEDA legislation apply to Alberta? - Yes and No, since Alberta has PIPA
(which is substantially similar to PIPEDA so accepted), it does not all to all organizations
involved in commercial activities.
Which 2 areas does PIPEDA legislation continue to apply to in Alberta (and provinces
that have set up legislation like PIPA) - PIPEDA continues to apply to 1. Federally
regulated businesses (such as banks, airlines, and telecommunication companies. 2.
Organizations conducting business (involving person information) that crosses
provincial or national borders
, 10 Privacy Principles in Practice - 1. Accountability 2. Identifying Purposes 3. Consent
4. Limiting Collection 5. Limiting Use, Disclosure, and Retention 6. Accuracy 7.
Safeguards 8. Openness 9. Individual Access 10. Challenging Compliance
3 types of consent (recognized by Privacy legislation) - Express, implied or opt-out
Can Real estate assistants hired by the brokerage do activities involving the public? -
Yes (but not tasks that would require being authorized to trade in real estate, mainly to
help with administrative functions or general office duties supporting the day-to-day
activities. In some instances, involve the public
If a REP hires an assistant (first must have broker's consent) can the tasks involve the
public? - No, they cannot involve the public. Otherwise they need to be employed by
the brokerage
3 Things that need to be implemented if using a virtual assistant in order to protect client
information - 1. Confirm the virtual assistant privacy policies and procedures are
comparable to that of the brokerage 2. Notify clients whose personal information is
being collected or transferred when notification was not included in the real estate
relationship form. Notification should be in writing and documents for brokerage record
keeping. 3. Advise clients whose personal information is collected or transferred, how
the real estate brokerage's privacy policies and procedures may be obtained in writing.
Also let the client know who can answer questions about the collection, use, and
disclosure of their personal information when handled by the virtual assistant.
How can a REP possibly use a virtual assistant? - The REP, along with their client can
consent to modify the relationship agreement regarding the collection, use , and
disclosure of their personal information to indicate that 'a virtual assistant employed by
the real estate professional has that same consent'.
What does CASL stand for? - Canada's Anti-Spam Legislation
What are CEMs? - commercial electronic messages. Any message in electronic form
(eg emails, text messages, instant messages) sent to an electronic address, (eg. email
address, instant message accounts, cell phone accounts, social media accounts) and
encourages participation in a commercial activity, including, but not limited to, offering,
advertising, or promoting a product, service, or person.
"Phishing" meaning - Phishing involves impersonating a trusted person, organization,
or website to steal an individual's personal information, generally for the purpose of
identity theft.
4 points of Expressed consent - 1. written consent includes both paper and electronic
forms 2. Verbal consent can be documented by an independent third party or by an
unedited audio recording of the recipient giving consent 3. expressed consent cannot be
