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UBC Real Estate Trading Services Licensing Course > Chapter 1.3: Real Estate Services Act > Flashcards

Chapter 1.3: Real Estate Services Act Flashcards

1
Q

Reverse pyramid order for a brokerage (top to bottom)

A

1) brokerage
2) managing broker
3) associate broker (optional)
4) representative (aka me)

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2
Q

The __________ provides services on behalf of the brokerage

A

Licensee

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3
Q

The managing broker is responsible for the ________, and has control and conducts and __________ agents

A

Brokerage

Supervise

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4
Q

Cancellation / suspension of _________________ impacts all licensees within the brokerage

A

Brokerage license

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5
Q

Managing broker is responsible for 3 things, what are they?

A

1) a brokerage exercising the rights conferred on the brokerage
2) control and conduct of the brokerage’s real estate business
3) supervision of its licensees

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6
Q

What are the 3 qualifications that must be met for an individual to become a realtor

A

1) be at least 19 years old
2) be of good reputation
3) meet educational requirements

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7
Q

Qualification for managing broker

A

1) 2 years licensed experience during the 5 years before the date of application
2) be at least 19 years old (so 21 lol?)
3) be of good reputation
4) just meet educational and experience required by the Rules

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8
Q

The managing broker could be nicknamed the

A

Zookeeper

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9
Q

Managing broker responsibilities (4 things)

A

1) May employ agents
2) maintain brokerages books, accounts, and records (for 7 years)
3) responsible for the agents actions
4) must have a managing broker, whose license will determine the services the brokerage is permitted to offer

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10
Q

How is the managing broker liable?

A

The brokerage will held vicariously liable for the fraud committed by the brokerage’s employees.

It may also be disciplined by the BCFSA

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11
Q

How long is a realtor license good for?

A

2 years

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12
Q

Can a realtor work at multiple brokerages at once?

A

You can only work for 1 brokerage at a time

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13
Q

All contracts with clients will be in the name of _____________________

A

Your brokerage (not the realtors clients)

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14
Q

A realtor can only accept ____________ from their brokerage (such as bonuses and gifts)

A

Remunerations

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15
Q

When you take a listing, it is your _______________ listing

And when you help a buyer, it is your ____________ buyer’s

A

Brokerages!!!

Nothing is yours

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16
Q

Three “real estate services” under RESA

A

1) trading services
2) rental property management
3) strata management services

Services are provided on behalf of your brokerage

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17
Q

Trading services under RESA includes

A

Selling / buying
Open houses
Finding properties

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18
Q

Rental property management services under RESA includes what?

A

Collecting rents
Making payments
Collecting strata fees
Negotiating

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19
Q

Strata management services under RESA includes what?

A 
Managing on behalf of the owner
Making payments 
Negotiating 
Supervising contractors 
Managing tenant matters
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20
Q

Exceptions to the Real Estate License (no need to have a real estate license if:)

A

1) for sale by owner
2) collection agents
3) notaries
4) accountants
5) appraisers
6) persons acting on developers behalf

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21
Q

Personal Real Estate Corporation (PREC) can be licensed as a:

A

A personal real estate corporation can be licensed as a managing broker, associate broker, or representative

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22
Q

Personal real estate corporation (PREC) primary objective

A

Better planning of income and tax streams

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23
Q

Personal real estate corporation (PREC) disadvantage

A

Does not shield controlling individual from liability from third parties

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24
Q

An unlicensed assistant can do what?

A

1) unlock property in order to let prospective buyers and their representatives enter
2) perform office filings and bookkeeping
3) draft documents and correspondence for approval and signature by the licensee
4) place or remove signs
5) witness signatures
6) arrange for repairs on rental property

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25
Q

An unlicensed assistant cannot

A

1) host an open house
2) renew a listing contract on behalf of licensed realtor
3) present an offer to purchase real estate
4) negotiate lease agreements

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26
Q

The Real Estate Services Act aims to

RESA

A

1) to ensure that real estate licensees are reasonably competent
2) to ensure that real estate licensees are of good reputation
3) to discipline and, where necessary, re-educate real estate licensees if they breach the act

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27
Q

The Real Estate Services Act (RESA) created 3 organizations, what are they?

A

1) real estate foundation (law reform)
2) real estate errors and omissions insurance (indemnity plan)
3) real estate compensation fund corporation

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28
Q

BCFSA stands for what?

A

British Columbia financial services act

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29
Q

_________ is a crown regulatory agency of the BC government

A

BCFSA

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30
Q

Does the BCFSA have a law reform, no code of ethics / realtor (no relation)

A

No sir

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31
Q

What is the main objective of BCFSA

A

Strengthen consumer protection and ensure public can have confidence in the standards of practice provided by real estate professionals

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32
Q

One aspect of the BCFSA is that it enforces the Act, what does this entail!

A

It ensures that agents meet the requirements outlined in RESA

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33
Q

Another aspect of the BCFSA is education, what does this mean?

A

Supervising and advancing the educational qualifications and programs of licensees

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34
Q

The BCFSA is in charge of the licenses, what powers do they have?

A

They have the power to issue, renew, suspend, reprimand, and CANCEL licenses

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35
Q

BCFSA has the right to investigate realtors, what does this entail?

A

The right to investigate you before or after becoming licensed

There is no complaint or permission required to start an investigation

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36
Q

The BCFSA may apply to the court for what?

A

In order to seize records (to which your permission is NOT required)

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37
Q

The BCFSA is responsible for fees and expenses associated with being a realtor, what is included in this?

A

Levying fees on all licensees to meet BCFSA expenses

They may require the licensee to pay part or all of the expense associated to investigations and discipline hearings

38
Q

BCFSA makes various bylaws, such as?

A

Information required on a license application, it’s business and affairs, hearing procedures, bylaw creation procedures

39
Q

BCFSA can hold disciplinary hearings (by discipline committee) and the decision to discipline a licensee will be heard by the ________________

A

Financial services tribunal

NOT THE SUPREME COURT OF BC

40
Q

The superintendent of real estate is appointed by the ______________________

A

The BCFSA board of directors

41
Q

The superintendent of real estate is the ________________ of the BCFSA who posses certain powers, and must fulfil specific duties, under the ________________

A

Chief executive officer (CEO)

Real estate services act (RESA)

42
Q

What are 2 examples of things the superintendent does?

A

1) all licensing application must be made through the superintendent
2) superintendent will carry out investigations and disciplinary functions in relation to licensees

43
Q

The Real Estate Foundation focuses on what?

A

Education
Research
Real estate law reform

44
Q

The _____________________ receives interest earned on monies in brokerage ________________ in BC to pay for their expenses and research

A

Real estate foundation

Trust accounts

45
Q

In 3 simple words, what does the Real Estate Errors and Omissions Insurance Corp do?

A

Protects against negligence!!

46
Q

The Real Estate Errors and Omissions Insurance Corp has an __________________

A

Indemnity plan

47
Q

What is the Real Estate Errors and Omissions Insurance Corp Indemnity Plan?

A

Insurance coverage and exclusions for real estate licensees in BC

48
Q

What are three things the Indemnity Plan does?

A

1) Protects against negligently performing or failing to perform real estate duties
2) levies different assessments on licensees
3) the indemnity plan will cover the licensee up to $1 million for negligence but not for any fines, penalties imposed on a licensee by BCFSA

49
Q

The indemnity plan will cover the licensee up to $_______________ for negligence, but not for _______ or _________ imposed on the licensee by the BCFSA

A

$1,000,000

Fines or penalties

50
Q

The Real Estate Errors and Omissions Insurance Corp does not protect you from:

A
  • dishonest, fraud, criminal matters (aka on-purpose things)
  • disputes concerning commission or fees
  • The real estate agent is selling their personal home (For sale by owners (FISBO) is not covered)
  • Claims for discrimination arising from the complains (human rights issues)
  • bodily injuries, sickness, disease, or death (accident insurance covers this)
51
Q

The ________________________ provides compensation in relation to a real estate transaction for funds that were misappropriated

A

Real Estate Compensation Fund

Example: money is collected, deal falls through, go to these guys to get money back

52
Q

CREA stands for what?

A

Canadian Real Estate Association

53
Q

The ________________________ is a national organization comprised of licensees and real estate boards across the country, as well as all of the provincial real estate associations

A

Canadian Real Estate Association (CREA)

54
Q

Who developed the Code of Ethics (Realtor Code)

A

Canadian Real Estate Association (CREA)

55
Q

What is the golden rule

A

Do unto others as you would have them do unto you

56
Q

What does BCREA stand for?

A

British Columbia Real Estate Association

57
Q

The British Columbia Real Estate Association has _____ real estate boards, they run the _____, and they are the ones who enforce the __________________

A

10

MLS

Realtor Code of Ethics

58
Q

What does MLS stand for?

A

Multiple Listing Service

59
Q

What does BCREA do!

A

1) communications network
2) government relations
3) economics forecasts
4) standard forms
5) ongoing education (PDP, newsletter)
6) advancing the interests of real estate licensees

60
Q

Real Estate Institute of BC

A

Awards the professional designation “RI”

Advances education

61
Q

What does REDMA stand for?

A

Real Estate Development Marketing Act

62
Q

Real Estate Development Marketing Act covers 4 topics, which are

A

1) subdivisions
2) strata properties
3) cooperatives
4) Time Shares

63
Q

Real Estate teams must consist of at least _____ people, and minimally one of them must be _______

A

2

Licensed

64
Q

To work on a real estate team, all licensed members must be licensed with the ______________

A

Same brokerage

65
Q

A licensee can only be on _________ real estate team at a time

A

One
Uno
1

66
Q

Real estate team members and team name must be registered with ______

A

BCFSA

It is the obligation to advice BCFSA in writing if any team members leave or join too

67
Q

All advertising from a real estate team that includes the name of ___________ team members must identify that member as being ___________

A

Unlicensed

Unlicensed

68
Q

A real estate team is collectively one agent for the client and cannnot separate agency relationships, meaning

A

That one team member cannot represent the buyer and another member of the same team represents the seller

69
Q

The ________________________________ was created to impose disclosure requirements on ___________ with the superintendent of Real Estate

A

Real Estate Development Act

Developers

70
Q

What is considered a “Development Property”

1) subdivisions - ______ or more
2) bare land strata lord - _____or more
3) cooperative interests - ____ or more

A

1) 5 or more
2) 5 or more
3) 2 or more

71
Q

Purchasers are required by REDMA requiring developers to:

A

1) meet requirements or approvals of the property
2) to assure the purchasers title
3) file disclosure statements in the form required by the superintendent

72
Q

A ________________ discloses material interest about property

A

Disclosure statement

73
Q

When is a disclosure statement required?

A

When sold Individually

74
Q

When must a disclosure statement be provided to a buyer:

A

Before the offer is made

NOT AFTER

75
Q

A disclosure statement must indicate the right to rescind the purchase within _________

A

7 days

1 weeks bitch

76
Q

The disclosure statement must be in the prescribed form by the __________________

A

Superintendent of Real Estate

77
Q

A disclosure statement must be prepared and filed with the ______________

A

Superintendent of real estate

78
Q

A _____________ is a document prepared by the developer to ensure the purchasers have adequate information upon which to base a purchasing decision

A

Disclosure statement

79
Q

BCFSA Discipline Matters include (for development related matters)

A

1) accepting remunerations directly from the developer and not from the brokerage in relation to which the licensee was licensed
2) failing to recommend legal advice to purchasers

80
Q

______________: Where money is deposited by one for the benefit of another, in which the money is devoted to a particular purpose and should not be diverted for other purposes

A

Trust Account

81
Q

A brokerage must have at least one ____________ in a bank and not one trust account for _______________

A

Trust account

Each client

82
Q

The agent / brokerage collects the deposit as a ___________

A

Stakeholder

🐮 🥩 🐄

83
Q

Withdrawals from trust accounts can only happen for certain occasions, which are:

A

1) by mistake
2) interest paid to the Real Estate Foundation
3) Remuneration for a licensee if earned
4) Accordance with the instructions of the principal

84
Q

You can not take money out of a trust account for 2 things:

A

1) brokerage business expenses

2) Agents personal expenses

85
Q

_____________________: providing measured and proportionate response to particular instances of non-compliance and adds to a progressive discipline system

A

Administrative Penalties

86
Q

Administrative Penalties are meant for offences that are ____________ than offences dealt with by a Notice of Disciplinary Hearing

A

Less serious

87
Q

Administrative penalties do not apply to ____

A

Fraud

88
Q

The _______ can conduct an investigation to determine whether a licensee has committed _____________________ or _________________

A

BCFSA

Professional Misconduct

Unbecoming a licensee

89
Q

If an investigation is started against a licensee, they are required to:

A

1) respond promptly to any inquiry addressed to the licensee by the BCFSA
2) Licensee response must be in writing and within the time limit set for response
3) promptly notify their managing broker of their own misconduct
3. 5) even misconduct observed outside one’s brokerage should be reported, but isn’t required

90
Q

Under section 47 of RESA, BCFSA must publish all orders (consent orders, discipline orders, urgent orders) and provide copies to any person under request

The order must be posted where

A

On the BCFSA website

UBC Real Estate Trading Services Licensing Course (24 decks)

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