Chapter 1.3 - Real Estate Services Act Flashcards
Pyramid order for a brokerage (top to bottom)
1) brokerage
2) managing broker
3) associate broker (optional)
4) representative (aka me)
The __________ provides services on behalf of the brokerage
Licensee
The managing broker is responsible for the ________: and has control/conducts and __________ agents
Brokerage
Supervises
Cancellation / suspension of _________________ impacts all licensees within the brokerage
Brokerage license
Managing broker is responsible for 3 things, what are they?
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
What are the 3 qualifications that must be met for an individual to become a realtor
1) be at least 19 years old
2) be of good reputation
3) meet educational requirements
Qualification for managing broker
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
Brokerage responsibilities (4 things)
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
How is the managing broker liable?
The brokerage will held vicariously liable for the fraud committed by the brokerage’s employees.
It may also be disciplined by the BCFSA
How long is a realtor license good for?
2 years
Can a realtor work at multiple brokerages at once?
You can only work for 1 brokerage at a time
All contracts with clients will be in the name of _____________________
Your brokerage (not the realtors clients)
A realtor can only accept ____________ from their brokerage (such as bonuses and gifts)
Remunerations
When you take a listing, it is your _______________ listing
And when you help a buyer, it is your ____________ buyer’s
Brokerages!!!
Nothing is yours
Three “real estate services” under RESA
1) trading services
2) rental property management
3) strata management services
Services are provided on behalf of your brokerage
Trading services under RESA includes
Selling / buying
Open houses
Finding properties
Rental property management services under RESA includes what? (4 things)
Collecting rents
Making payments
Collecting strata fees
Negotiating
Strata management services under RESA includes what? (5 things)
Managing on behalf of the owner
Making payments
Negotiating
Supervising contractors
Managing tenant matters
Exceptions to the Real Estate License (no need to have a real estate license if:) (6 things)
1) for sale by owner
2) collection agents
3) notaries
4) accountants
5) appraisers
6) persons acting on developers behalf
Personal Real Estate Corporation (PREC) can be licensed as a:
A personal real estate corporation can be licensed as a managing broker, associate broker, or representative
Personal real estate corporation (PREC) primary objective
Better planning of income and tax streams
Personal real estate corporation (PREC) disadvantage
Does not shield controlling individual from liability from third parties
An unlicensed assistant can do what? (6 things)
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
An unlicensed assistant cannot (4 things)
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
The Real Estate Services Act aims to
RESA
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
The Real Estate Services Act (RESA) created 3 organizations, what are they?
1) real estate foundation (law reform)
2) real estate errors and omissions insurance (indemnity plan)
3) real estate compensation fund corporation
BCFSA stands for what?
British Columbia financial services act
What is the main objective of BCFSA
Strengthen consumer protection and ensure public can have confidence in the standards of practice provided by real estate professionals
One aspect of the BCFSA is that it enforces the Act, what does this entail!
It ensures that agents meet the requirements outlined in RESA
Another aspect of the BCFSA is education, what does this mean?
Supervising and advancing the educational qualifications and programs of licensees
The BCFSA is in charge of the licenses, what powers do they have?
They have the power to issue, renew, suspend, reprimand, and CANCEL licenses
BCFSA has the right to investigate realtors, what does this entail?
The right to investigate you before or after becoming licensed
There is no complaint or permission required to start an investigation
The BCFSA may apply to the court for what?
In order to seize records (to which your permission is NOT required)
The BCFSA is responsible for fees and expenses associated with being a realtor, what is included in this?
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