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Real Estate > Module 1 Lesson 1 > Flashcards

Module 1 Lesson 1 Flashcards

1
Q

REBBA

A

Real Estate and Business Brokers Act

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2
Q

RECO

A

Real Estate Council of Ontario

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3
Q

COE

A

Code of Ethics

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4
Q

Who is responsible for REBBA

A

In Ontario, the ministry of Government and Consumer Services is Responsible for REBBA

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5
Q

Registrant

A

Any individual or brokerage that is registered to trade in real estate

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6
Q

What is the code of ethics?

A

The code of ethics set requirements for acceptable conduct by a brokerage, broker and salesperson when conducting business. The code sets minimum standards to help ensure no misunderstanding or ambiguity exists in the mind of sellers and buyers about what they should expect when interacting with a real estate professional.

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7
Q

Examples of Code of Ethics

A
  • Fairness and honesty
  • Conscientious and competent service
  • Services from others
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8
Q

RECO’s role and responsibility

A

are mandated to ensure that the regulations of trading in real estate builds and sustains public trust in the real estate market.

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9
Q

Ontario Real Estate Requirements

A

Requires registration with RECO- subject to exemptions set out in REBBA

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10
Q

Registrant categories under REBBA

A
  • Brokerage
  • Broker
  • Salesperson
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11
Q

Broker of Record

A

REBBA requires the brokerage to designate a broker within the brokerage as the broker of record

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12
Q

Brokerage

A

A brokerage is a partnership, corporation or sole proprietorship.

All agreements with sellers and buyers are with the brokerage and not the broker or salesperson

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13
Q

Broker

A

A broker is an employee who has the prescribed qualifications to be registered as a broker under REBBA and who is employed by a brokerage to trade in real estate

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14
Q

Salesperson

A

A salesperson is an individual with the prescribed
qualifications to be registered as a salesperson under
REBBA and who is employed by a brokerage to trade in real estate. To obtain registration as a salesperson, the individual must successfully complete the Real Estate Salesperson Program. Within the first two years of registration, additional educational requirements must be fulfilled to maintain registration as a salesperson.

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15
Q

Broker of Record

A

All brokerages are required to have a broker of record. The broker of record is responsible for all activities of the brokerage, including all brokers, salespersons and all other employees of the brokerage.

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16
Q

3 steps of registration requirements

A

Step 1: Complete the registration education requirements
Step 2: Register with RECO once employed by a brokerage
Step 3: Purchase insurance coverage through the RECO insurance program

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17
Q

How many months after pre-registration do you have to register with RECO

A

12 months after the culminative theory exam

18
Q

What does RECO’s insurance program cover

A
  • Consumer Deposit protection
  • Errors and Omission
  • Commission Protection
19
Q

When is the annual insurance premiums due

A

Mid-august

20
Q

How long do you have to complete the post registration

A

24 months

21
Q

When do you have to renew your registration with RECO

A

every 2 years, RECO will send a reminder 60 days before expiry

22
Q

What are some skills you need for real estate

A
  • People Skills
  • Negotiating
  • Problem solving
  • Interview techniques
  • Self-discipline
  • Research
  • Organizing and Planning
  • Confidence and Persistence
  • Mathematic skills
  • Computer Literacy
  • Technology Proficiency
23
Q

Residential Resale

A

Houses that have previously been bought and sold, rather than a new home being built

24
Q

New Home Sales

A

New home sales can involve completely opposite approaches to the transaction by the builder and the buyer. While the builder may look at this solely as a business transaction, the buyer is making a purchase based on their needs and wants, and the emotions will naturally flow.

25
Q

Residential Condominiums

A

Condominiums offer a distinct type of form of ownership that includes ownership of a specific unit with shared ownership of the common property.

26
Q

Rural, Recreational and Agricultural sales

A

Sales of rural, recreational and agricultural properties requires a unique skill set and can be a challenge for those who are not familiar with the rural lifestyle. Depending where you are located, the prevalence of rural land will determine the amount of exposure you have to listing and selling these property types.

27
Q

Commercial

A

Larger centres can have one or more brokerages
focused solely on commercial transactions, or a
brokerage may have a few salespersons who will focus their activities on commercial rather than any
residential sales. In some areas, a salesperson may
trade in both commercial and residential properties,
however you should understand that commercial sales can be quite complex. Working in the commercial
market can be more specialized as there are different
commercial segments, each requiring their own skill
set.

28
Q

Leasing Commercial Buildings

A

Many salespersons will provide services related to
leasing properties for the owners. Leasing will require
a comprehensive understanding of the legislation
impacting commercial tenancies. Above average
people skills are important as interactions with tenants
can present quite a diverse consumer base.

29
Q

Representing the seller

A

An agreement to list a property is documented by a seller representation agreement between the seller and the brokerage. Although the agreement is with the brokerage, the salesperson working directly with the seller will perform the duties agreed on the agreement

30
Q

Marketing the property

A

A seller will want to know what will be done to
advertise and market the property to obtain an
acceptable offer within their required time period. As
such, the marketing plan for the seller’s property will
need to take into consideration any unique aspects of
the property or any requirements of the seller.
Typically, all advertising is done at the expense of the
salesperson and is a cost borne whether the property
sells or not. An effective marketing plan is important to
both the seller and you.

31
Q

Prospecting

A

Prospecting involves searching for qualified buyers for
the listed property and includes more than placing a
sign on the property or showcasing the listing on a
website.
The property in terms of type, location, and price range should provide you with a profile of a typical buyer. You will then be able to target market activities
accordingly.

32
Q

Preparing the property to be shown

A

Showing the property to a prospective buyer could
occur immediately after it has been listed for sale, so
the property needs to be ready. If any repairs or
maintenance is required, this should be completed
before the home is viewed. When showing the
property to a prospective buyer, ensure you are
familiar with the home; that is, be able to show the
property as if it was your own home. For example,
know where the light switches are in every room and
be able to describe how much closet space there is
without opening a closet door.

33
Q

Qualifying buyers and showing the property

A

Qualifying involves first determining the buyer’s needs
and wants, and ensuring any property shown falls
within their financial abilities.

When working with buyers, you should select a limited
number of properties to show for each outing based
on the information obtained during the qualifying
process. The purpose of selecting a few properties is to avoid confusion over what features were in each
property viewed, and to continue to define the buyer’s
needs and wants.

Showing and providing accurate and complete
information to the buyer will assist them in their
decision making. Accurately keeping feedback on the
properties shown to the buyer will assist when
preparing an offer.

34
Q

Preparing an offer

A

A buyer may specifically tell you they would like to
place an offer on a property. Other times, you may
need to pay close attention to their actions and words
which indicate they are ready. Having a good rapport
with the buyers will make the transition from “viewing
properties” to “making an offer” on a property less
stressful for the buyer.

Drafting an offer is complex and involves a significant
amount of information and detail that must be
accurate and complete. You will be expected to draft
an offer which includes all of the terms and conditions
required by the buyer. Buyers may be relying on your
advice to assist in preparing an offer that promotes
and protects their best interests while at the same
time, ensuring the seller is treated with fairness and
honesty.

35
Q

Presenting an Offer

A

As the listing salesperson, you will guide the seller
through the offer presentation and negotiations. This
involves analyzing the buyer’s offer, ensuring the seller
is aware of any market conditions or other
circumstances they should take into consideration, and
providing advice to help them arrive at a well informed
decision. The seller may accept, reject, or counter the
buyer’s offer. Countering an offer means the seller
signs an offer to sell the property to the buyer under
different terms. You should be prepared, as these
negotiations can be challenging and complex. Always
ensure decisions are based on sound judgement and
not the heightened emotions associated with
negotiating an offer.

36
Q

Follow up after an offer has been accepted

A

The transaction must be monitored after the offer has
been accepted because there may be one or more
conditions that must be satisfied by the seller or the
buyer before the offer becomes binding. This is known
as the conditional time period of an offer.

37
Q

Initial expenses

A
  • Application review fee
  • Salesperson registration fee
  • RECO insurance program premium- mandatory
  • start up costs- website, business cards, updating or purchasing the tools needed to get started
38
Q

On- going expenses

A
  • Education and profession development
  • Registration renewal every two years
  • Annual premium for the RECO insurance program
  • Marketing and advertising expenses
  • Other business expenses
39
Q

Listing brokerage

A

working with the seller

40
Q

Co-operating brokerage

A

working with the buyer

Real Estate (6 decks)

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