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RETS > Chapter 2 > Flashcards

Chapter 2 Flashcards

1
Q

RESA Section 3

A

You must have a license to provide real estate services to others for payment.

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2
Q

BCFSA

A

The BC Financial Services Authority, which oversees real estate professionals.

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3
Q

Four Licence Levels

A

The four types of licenses: brokerage, managing broker, associate broker, and representative.

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4
Q

Brokerage Licence

A

A company license that allows a brokerage to offer real estate services through its agents.

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5
Q

Managing Broker

A

The person responsible for the overall management and supervision of a brokerage.

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6
Q

Associate Broker

A

An experienced agent who meets the qualifications to be a managing broker but works under one.

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7
Q

Representative

A

A licensed individual who provides real estate services under the supervision of a managing broker.

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8
Q

Single Brokerage Rule

A

Real estate agents must work for only one brokerage at a time, except in specific circumstances.

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9
Q

Affiliated Brokerages

A

Managing brokers can work for multiple brokerages if they are related or affiliated.

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10
Q

Licensee Compensation

A

Agents can only receive payment for real estate services from the brokerage they are licensed with.

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11
Q

Vicarious Liability

A

Brokerages can be held legally responsible for the actions of their agents.

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12
Q

Financial Requirements

A

Brokerages must prove they are financially stable and able to cover their operational costs.

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13
Q

Recordkeeping

A

Brokerages are required to maintain accurate and complete records of all transactions and operations in BC.

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14
Q

Trust Accounts

A

Brokerages must have separate bank accounts to hold clients’ money safely.

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15
Q

Annual Filings

A

Brokerages must submit financial statements and reports to BCFSA every year.

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16
Q

Managing Broker Duties

A

Overseeing the brokerage’s operations, ensuring compliance with laws, and supervising agents.

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17
Q

Associate Broker Duties

A

Similar to managing brokers but do not have full responsibility; they assist and work under managing brokers.

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18
Q

Representative Duties

A

Must follow the instructions and guidance of the managing broker and comply with all regulations.

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19
Q

License Renewal

A

Real estate licenses must be renewed every two years, with proof of continuing education.

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20
Q

License Qualifications

A

Applicants must meet certain education, experience, and character standards to obtain a license.

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21
Q

Good Reputation

A

Applicants must demonstrate good character and conduct, often through a criminal record check.

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22
Q

Criminal Record Check

A

A background check required to ensure the applicant has no serious criminal history.

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23
Q

Educational Requirements

A

Must complete specific courses and pass exams to qualify for a real estate license.

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24
Q

Experience Requirements

A

Must have a certain amount of real estate experience to become an associate or managing broker.

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25
Q

Temporary Licence

A

A short-term license that allows the holder to practice under certain conditions.

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26
Q

Discipline Process

A

BCFSA can investigate and penalize agents for violating real estate laws and regulations.

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27
Q

Professional Misconduct

A

Actions such as fraud, dishonesty, or violating RESA and other regulations.

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28
Q

Conduct Unbecoming

A

Behavior that negatively affects public trust in the real estate industry.

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29
Q

Complaint Filing

A

Anyone can report suspected misconduct by a real estate agent to BCFSA.

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30
Q

Investigation

A

BCFSA examines complaints and conducts inquiries into agents’ actions.

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31
Q

Discipline Hearing

A

A formal meeting where BCFSA determines if an agent has committed misconduct.

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32
Q

Consent Order

A

An agreement where an agent accepts a penalty without a formal hearing.

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33
Q

Urgent Orders

A

Immediate actions taken by BCFSA to protect the public, such as suspending a license.

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34
Q

Sanctions

A

Penalties for misconduct, including fines, suspensions, or license cancellations.

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35
Q

Administrative Penalties

A

Fines for minor breaches of regulations, without needing a formal hearing.

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36
Q

Appeals

A

Agents can appeal BCFSA decisions to the Financial Services Tribunal.

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37
Q

Inoperative Licence

A

A license becomes inactive if an agent stops working for their brokerage.

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38
Q

Voluntary Surrender

A

Agents can choose to give up their license, making it inactive.

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39
Q

Employee vs Contractor

A

Agents can be hired as employees or independent contractors by brokerages.

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40
Q

Independent Contractor

A

An agent who is self-employed and not subject to certain employee benefits and protections.

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41
Q

Employee

A

An agent who is hired by a brokerage and receives wages and employment benefits.

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42
Q

Home Office Rules

A

Specific conditions for agents working from home, such as no external signage.

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43
Q

Trading Services Licence

A

Allows agents to perform activities like selling, buying, and leasing properties.

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44
Q

Property Management

A

Managing rental properties, which requires a specific license if done for others.

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45
Q

Unlicensed Activities

A

Activities that agents cannot perform without the appropriate license.

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46
Q

Trust Account Uses

A

Rules for handling and using client money held in trust accounts.

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47
Q

Stakeholder Role

A

Brokerages act as neutral parties holding deposit money during transactions.

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48
Q

Money Withdrawal

A

Conditions under which money can be taken out of trust accounts.

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49
Q

Cryptocurrency

A

Special rules and risks for real estate transactions involving digital currencies.

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50
Q

Suspicious Activities

A

Agents must report any suspicious transactions to their managing broker.

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51
Q

Teams

A

Groups of agents working together under one brokerage.

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52
Q

Team Advertising

A

Rules for using team names in real estate marketing and advertising.

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53
Q

Licensee Names

A

Agents must use their legal names in all real estate activities.

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54
Q

Agency Relationships

A

Teams cannot act for both buyer and seller in the same transaction.

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55
Q

Recordkeeping for Teams

A

Teams must follow brokerage policies for keeping transaction records.

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56
Q

Disclosure Statement

A

Required document providing key information about a property development.

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57
Q

Material Facts

A

Important information that must be included in a disclosure statement.

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58
Q

Amended Disclosure

A

Required if the original disclosure statement is found to be incorrect or incomplete.

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59
Q

Seven Day Rescission

A

Buyers can cancel their purchase agreement within seven days of receiving the disclosure statement.

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60
Q

Rescission for Non-Delivery

A

Buyers can cancel if they do not receive the required disclosure statement.

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61
Q

Material Changes

A

Significant changes in a project require a new or amended disclosure statement.

62
Q

REDMA

A

Real Estate Development Marketing Act, regulating the marketing of development units.

63
Q

Development Property

A

Includes subdivisions, strata properties, cooperatives, and other shared interests in land.

64
Q

Subdivision

A

Land divided into individual lots for sale.

65
Q

Strata Lots

A

Individual units in a multi-unit property, like condos or townhouses.

66
Q

Cooperative Interests

A

Ownership shares in a cooperative that include the right to occupy a unit.

67
Q

Time Share Interest

A

Right to use a property periodically, such as a vacation home shared by multiple owners.

68
Q

Shared Interest in Land

A

Property ownership shared by multiple people, each with rights to a specific part.

69
Q

Leasehold Unit

A

Units in a building leased for residential purposes, often in long-term lease agreements.

70
Q

Disclosure Statement Form

A

Must follow specific format and content guidelines set by BCFSA.

71
Q

Marketing Restrictions

A

Rules for promoting a development before the disclosure statement is filed.

72
Q

REDMA Penalties

A

Fines and penalties for developers who do not comply with REDMA.

73
Q

Unlicensed Property Management

A

Penalties for managing properties without the proper license.

74
Q

Annual Filing Requirements

A

Brokerages must file yearly financial and activity reports with BCFSA.

75
Q

Financial Statements

A

Brokerages must submit detailed yearly financial reports.

76
Q

Accountant’s Report

A

An independent review of the brokerage’s finances required annually.

77
Q

Brokerage Activity Report

A

Yearly report detailing the brokerage’s operations and transactions.

78
Q

Training and Supervision

A

Only licensed individuals can train and supervise other agents.

79
Q

Trust Account Interest

A

Typically, interest earned on trust accounts is paid to the Real Estate Foundation.

80
Q

Separate Trust Accounts

A

Clients can request separate accounts to earn interest on their deposits.

81
Q

Deposit Notices

A

Must inform all parties if a deposit is not received or a cheque bounces.

82
Q

Maintaining Proper Records

A

Essential for compliance, including transaction

83
Q

Maintaining Proper Records

A

Essential for compliance, including transaction details and correspondence.

84
Q

Audit Compliance

A

Brokerages must cooperate with BCFSA audits and inspections.

85
Q

Cryptocurrency Risks

A

Must inform clients about the risks of using digital currencies in transactions.

86
Q

Money Laundering

A

Be vigilant and report any suspicious activities related to deposits or transactions.

87
Q

General Responsibilities

A

Licensees must always act in the best interests of their clients.

88
Q

Client Agreements

A

Must be properly documented and filed according to regulations.

89
Q

Honesty and Skill

A

Licensees are required to act honestly and with reasonable skill in all transactions.

90
Q

Avoiding Conflicts of Interest

A

Must take steps to avoid conflicts in real estate transactions.

91
Q

Prompt Payment

A

Client money must be deposited into trust accounts without delay.

92
Q

Stakeholder Obligations

A

Brokerages act as neutral parties when holding deposit money.

93
Q

Deposit Disputes

A

Specific rules apply for handling and resolving disputes over deposits.

94
Q

Money Held by Third Parties

A

Special rules for deposits held outside of trust accounts, such as by lawyers.

95
Q

Anonymous Tipline

A

A way to report suspicious or unethical behavior anonymously to BCFSA.

96
Q

Managing Family Rentals

A

Rules for agents managing rental properties for family members.

97
Q

Family Rentals Disclosure

A

Must inform tenants and the managing broker about family management roles.

98
Q

Remuneration Prohibition

A

Cannot receive payment for managing family-owned properties.

99
Q

Professional Development

A

Continuing education is required to renew a real estate license.

100
Q

Renewal Application

A

Must be submitted at least 30 days before the license expires.

101
Q

Refusal to Renew

A

BCFSA can refuse to renew a license for various reasons, such as misconduct.

102
Q

Suspension or Cancellation

A

Licenses can be suspended or canceled if rules are broken.

103
Q

Right to be Heard

A

Agents must be given a chance to defend themselves if their license is at risk.

104
Q

Written Reasons

A

BCFSA must provide written reasons for any license refusals or suspensions.

105
Q

Financial Services Tribunal

A

The body that handles appeals against BCFSA decisions.

106
Q

Inoperative Licence Reinstatement

A

Conditions under which an inactive license can be reactivated.

107
Q

Voluntary Licence Surrender

A

Agents can voluntarily give up their license, making it inactive.

108
Q

Employee vs Contractor

A

Differences between being an employee (wages and benefits) and a contractor (self-employed).

109
Q

Independent Contractor

A

An agent who is self-employed and handles their own taxes and benefits.

110
Q

Employee

A

An agent employed by a brokerage, receiving wages and employee benefits.

111
Q

Home Office Rules

A

Specific conditions for agents working from a home office, such as no signage.

112
Q

Trading Services Licence

A

Allows agents to perform buying, selling, and leasing activities.

113
Q

Property Management

A

Managing rental properties requires a specific license if done for others.

114
Q

Unlicensed Activities

A

Activities that agents cannot perform without the appropriate license.

115
Q

Trust Account Uses

A

Rules for handling and using client money held in trust accounts.

116
Q

Stakeholder Role

A

Brokerages act as neutral parties holding deposit money during transactions.

117
Q

Money Withdrawal

A

Conditions under which money can be taken out of trust accounts.

118
Q

Cryptocurrency

A

Special rules and risks for real estate transactions involving digital currencies.

119
Q

Suspicious Activities

A

Agents must report any suspicious transactions to their managing broker.

120
Q

Teams

A

Groups of agents working together under one brokerage.

121
Q

Team Advertising

A

Rules for using team names in real estate marketing and advertising.

122
Q

Licensee Names

A

Agents must use their legal names in all real estate activities.

123
Q

Agency Relationships

A

Teams cannot act for both buyer and seller in the same transaction.

124
Q

Recordkeeping for Teams

A

Teams must follow brokerage policies for keeping transaction records.

125
Q

Disclosure Statement

A

Required document providing key information about a property development.

126
Q

Material Facts

A

Important information that must be included in a disclosure statement.

127
Q

Amended Disclosure

A

Required if the original disclosure statement is found to be incorrect or incomplete.

128
Q

Seven Day Rescission

A

Buyers can cancel their purchase agreement within seven days of receiving the disclosure statement.

129
Q

Rescission for Non-Delivery

A

Buyers can cancel if they do not receive the required disclosure statement.

130
Q

Material Changes

A

Significant changes in a project require a new or amended disclosure statement.

131
Q

REDMA

A

Real Estate Development Marketing Act, regulating the marketing of development units.

132
Q

Development Property

A

Includes subdivisions, strata properties, cooperatives, and other shared interests in land.

133
Q

Subdivision

A

Land divided into individual lots for sale.

134
Q

Strata Lots

A

Individual units in a multi-unit property, like condos or townhouses.

135
Q

Cooperative Interests

A

Ownership shares in a cooperative that include the right to occupy a unit.

136
Q

Time Share Interest

A

Right to use a property periodically, such as a vacation home shared by multiple owners.

137
Q

Shared Interest in Land

A

Property ownership shared by multiple people, each with rights to a specific part.

138
Q

Leasehold Unit

A

Units in a building leased for residential purposes, often in long-term lease agreements.

139
Q

Disclosure Statement Form

A

Must follow specific format and content guidelines set by BCFSA.

140
Q

Marketing Restrictions

A

Rules for promoting a development before the disclosure statement is filed.

141
Q

REDMA Penalties

A

Fines and penalties for developers who do not comply with REDMA.

142
Q

Unlicensed Property Management

A

Penalties for managing properties without the proper license.

143
Q

Annual Filing Requirements

A

Brokerages must file yearly financial and activity reports with BCFSA.

144
Q

Financial Statements

A

Brokerages must submit detailed yearly financial reports.

145
Q

Accountant’s Report

A

An independent review of the brokerage’s finances required annually.

146
Q

Brokerage Activity Report

A

Yearly report detailing the brokerage’s operations and transactions.

147
Q

Training and Supervision

A

Only licensed individuals can train and supervise other agents.

148
Q

Trust Account Interest

A

Typically, interest earned on trust accounts is paid to the Real Estate Foundation.

149
Q

Separate Trust Accounts

A

Clients can request separate accounts to earn interest on their deposits.

150
Q

Deposit Notices

A

Must inform all parties if a deposit is not received or a cheque bounces.

RETS (18 decks)

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