PRRE - Unit 1: Clients

Question 1

A ___________, by way of signed a contract, is legally represented by a real estate professional and the real estate professional’s brokerage.

Answer 1

Client

Question 2

A ________ is an individual without a representation relationship. Services provided to them by a real estate professional are to only be performed to advance their client’s interest (e.g.to help their client sell or purchase a property).

Answer 2

Customer

Question 3

What are the general obligations? (8) CALM DEHN

Answer 3

1) Confidentiality
2) Act in Person
3) Obey Lawful Instructions
4) Perform Mandate
5) Disclose information
6) Exercise care and skill
7) Act Honestly
8) Negotiate Favourable Terms

Question 4

What are the Fiduciary Duties? (7) ALPACD

Answer 4

1) To Account
2) Utmost Loyalty
3) Not make secret profits
4) Avoid conflicts of interest
5) Handle confidential info properly
6) Disclose Conflicts of Interest

Question 5

What are the 3 types of Conflicts of Interest?

Answer 5

1) Competing Interests (2 buyers competing)
2) Opposing Interests (a buyer vs a seller)
3) Brokerage Interests (a business contact)

Question 6

In a non-representation relationship, a customer signs a _________________

Answer 6

Customer Acknowledgement Form

Question 7

In a representation relationship, a client signs a __________________

Answer 7

Written Service Agreement

Question 8

__________ is any information that can identify an individual directly.

Answer 8

Personal Information

Question 9

__________ includes any information concerning the client, including their financial or personal situation, their real estate, and transactions involving them

Answer 9

Confidential Information

Question 10

What are the 10 Privacy Principles? CLAUS CAPIO

Answer 10

1) Consent
2) Limiting Collection
3) Accountability
4) Limiting Use, Disclosure, Retention
5) Safeguards
6) Challenging Compliance
7) Accuracy
8) Identifying Purpose
9) Individual Access
10) Openness

Question 11

CASL stands for …

Answer 11

Canadian Anti-Spam Legislation

Question 12

2 Exceptions for disclosing client’s confidential info

Answer 12

1) If it is a legal requirement
2) If written permission is provided

Question 13

4 examples of confidential info

Answer 13

1) Reason to buy / sell
2) Motivation to buy / sell
3) Price to accept / pay
4) Offers received / submitted

Question 14

_____________ has no limits on the power of the attorney to make decisions about the donor’s financial and legal affairs.

Answer 14

General Power of Attorney

Question 15

__________________ grants specific or limited powers to the attorney to make certain decisions or act on the donor’s behalf. In Alberta they can make deals regarding land, and suspend the owner’s (i.e. donor) right to deal with the land when the POA is registered on the Certificate of Title

Answer 15

Specific Power of Attorney

Question 16

_______________________ appoints an attorney to make financial and legal decisions on behalf of the donor and takes effect as soon as the Power of Attorney is dated, signed, and witnessed

Answer 16

Immediate Power of Attorney

Question 17

_______________ appoints an individual to make financial and legal decisions on behalf of the donor and takes effect upon any of the follow:
*The donor becomes mentally incapacitated.
*Immediately upon it being dated, signed and witnessed and continues if the donor become incapable of managing his or her financial and legal affairs
*When some other event specified by the donor occurs sometimes referred to as a “Springing POA”

Answer 17

Enduring Power of Attorney

Question 18

Steps that real estate professionals must take when presented with a POA:

Answer 18

1) Take reasonable steps to ensure the donor is not deceased (alive).
2) Check Title to confirm that POA is registered on the Title.
3) Check ID of the Attorney to ensure it’s the correct person.
4) Get a copy of the POA.
5) Submit all paperwork to the brokerage

Question 19

A Trustee will be listed on the certificate of title. True or False?

Answer 19

True

Question 20

Will the Executor or the beneficiaries be listed on the Title?

Answer 20

Only the Executor

Question 21

An ___________ is a person to whom an interest or right in real property is legally transferred. An ____________ is the person who transfers a right or interest in real property.

Answer 21

Assignee
Assignor

Question 22

What are the 5 Ds of Role Clarity?

Answer 22

1) Discuss
2) Determine
3) Document
4) Disclose
5) Do