Assignment 6 (Chapter 9) Flashcards
Professionalism
The conduct, aims, or qualities that characterize or mark a profession or professional person. Ethics is a key component of professionalism.
Ethics
The moral principles that govern a person’s behavior or the conducting of an activity. Ethics is a crucial element of professionalism.
Conduct Unbecoming a Licensee
Conduct that is contrary to the interests of the public or brings the real estate industry into disrepute. It goes beyond technical compliance with legislation.
Professional Misconduct
Actions that fail to meet the standards required of a professional, typically involving a breach of duty or unethical behavior.
Ethical Principles
The foundational guidelines that inform and shape ethical behavior, such as honesty, integrity, and fairness.
Trust in Profession
The confidence placed by the public in professionals, based on their adherence to ethical principles and standards.
Headline Test
A self-evaluation method where one considers how their decision or action would look if it were reported as a headline in a newspaper.
Ethical Decision Making
The process of evaluating and choosing among alternatives in a manner consistent with ethical principles.
Public Law
The area of law that deals with the relationship between individuals and the government. It does not govern the relationship between a licensee and their client.
Agency Law
The area of law concerning the relationships where one person acts on behalf of another, particularly in business dealings.
Duty to Follow Lawful Instructions
The obligation of a licensee to act according to the instructions provided by their client, as long as those instructions are lawful.
Confidentiality
The duty to protect a client’s private information and not disclose it without their consent.
Conflict of Interest
A situation where a person or entity has competing interests or loyalties. Licensees must disclose any potential conflicts to their clients.
Disclosure
The act of providing necessary and relevant information to parties in a transaction to ensure transparency and informed decision-making.
Fiduciary Duty
The obligation of a real estate licensee to act in the best interest of their client, putting the client’s interests ahead of their own.
Duty of Care
The obligation to act with the level of care, diligence, and skill expected of a reasonably prudent person in similar circumstances.
Dual Agency
A situation in which a real estate agent represents both the buyer and the seller in a transaction. Dual agency must be disclosed and consented to by both parties.
Client Relationship
The professional relationship between a real estate licensee and their client, defined by fiduciary duties and obligations.
Real Estate Services Rules
A set of guidelines and regulations that govern the conduct of real estate licensees in British Columbia, including duties to clients and ethical obligations.
Code of Ethics
A formal document that outlines the ethical standards and principles that guide the behavior of real estate professionals.
Reasonable Grounds to Suspect
A standard for forming a suspicion based on factual context and indicators, used in identifying potential money laundering activities.
Suspicious Transaction Report (STR)
A report filed when there are reasonable grounds to suspect that a transaction or attempted transaction is related to money laundering or terrorist financing.
Know Your Client (KYC) Obligations
Requirements for financial and real estate professionals to verify the identity of their clients, understand their financial activities, and assess the risk of money laundering or terrorist financing.
Large Cash Transaction Report
A report that must be filed when receiving $10,000 or more in cash in a single transaction or multiple transactions within 24 hours.
