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ravi > ravi chapter 2 licenses > Flashcards

ravi chapter 2 licenses Flashcards

1
Q

what are the 3 types of licenses

A
  1. trading services
  2. rental property management services
  3. strata property management services
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2
Q

which type of service am i training for

A

training service! buying, selling, leasing

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3
Q

what are the traits of real estate trading services?

A
  1. advising on the price for real estate
  2. finding real estate for a party
  3. finding a party for real estate
  4. showing real estate
  5. negotiating the price
  6. presenting offers
  7. receiving deposits
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4
Q

what is specifically not a service under the real estate service act?

A

constructing!

property development etc

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5
Q

what are the 3 requirements for getting a license?

A
  1. must have good reputation
    - no license denied
    - no offences/no fraud
  2. police record check
  3. write and pass exams (fulfill educational requirements)
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6
Q

who needs a license to sell real estate?

A

anyone who is going to charge money or give any advice on real estate

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7
Q

what are the 4 levels of licenses?

A
  1. brokerage
  2. managing broker
  3. associate broker (assistant)
  4. representative (represent the brokerage)
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8
Q

every brokerage must have what?

A

a managing brokerage. if the manaing brokerage loses its license than the brokerage can not operate

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9
Q

is a managing broker a person or a corporation?

A

a person (a person appointed by a brokerage to represent it for all purposes)

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10
Q

what is the requirement to become a managing broker

A

2 years of experience as a rep in the past 5 years
19 years old
pass managing brokers exam

* this is important, they will ASK this on the exam, they might say is it 3 years experience, or in the past 10 years*

you MUST remember it is 2 YEARS EXPERIENCE IN THE PAST 5 YEARS!!!

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11
Q

how much experience required to become a managing broker

A

2 years experience as a rep in the past 5 years

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12
Q

what does it mean that the managing broker is “vicariously responsible for the reps”

A

the managing broker is responsible for whatever the reps do (actions)

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13
Q

difference between a managing broker and an associate broker?

A

the associate broker must pass the same exam as managing broker, but is not responsible for reps or liable to broker

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14
Q

what is a rule when advertising as a realtor?

A

the brokerage name much be visible and easily readable

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15
Q

commission is up to who?

A

me, i am allowed to charge however much i want to charge

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16
Q

representative commision can be any amount that is ___ or ____, but can not be _____?

A

can be fixed or percentage

can NOT be NET

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17
Q

what is an example of NET commision

A

you list a house for $120,000 and it sells for $135,000.

$15,000 would be NET commision, this is not allowed!!!

you can NOT say, “ i want the extra amount”

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18
Q

what are the sales procedure steps???

A
  1. the listing contract
  2. advertising
  3. dealing with parties
  4. contract of purchase and sale
  5. acceptance of the offer
  6. deposits into a trust account
  7. transaction (trade) record sheet
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19
Q

if you close a deal, who MUST recieve a copy of the contract (agreements copy)as specified by th real estate services act

A
  1. all of the buyers
  2. all sellers
  3. both brokerages
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20
Q

what happens if a sales happens, and you represent the seller vs representing the buyer?

A

the agent representing the buyer, will take the deposit and give it to HIS/HER brokerage, who will then put that money into a TRUST account

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21
Q

how many trust accounts does a brokerage need to have

A

1 trust account per service (not per client)

ussually would need 3 trust accounts…
trading
strata
rental

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22
Q

can money be taken out of a trust account

A

yes under certain conditions

  • pay commisions to the agent
  • pay person whos credit money was depositied
  • pay for expenses of th client

a brokerage MAY NOT withdraw money from trust account to cover brokerage business expenses

23
Q

what is “trade (transaction) record sheet” and what is required on it

A

it is the final document to be completed once for the agreement (the last step)

it includes..

  1. record of sales to be kept by the brokerage
  2. sales price (consideration)
  3. nature of trade (sale/lease)
  4. name/adress of parties
  5. remuneration, commission amounts and parties
24
Q

what is remuneration?

A

money paid for work or a service

25
Q

what is the rule for “teams”

A

all members of the team must be licensed with the sames brokerage

26
Q

how do “ teams” work?

A

if you get a “listing” it belongs to all team members

27
Q

what are the 2 acts created by the provincial goverment?

A
  1. real estate servicing act (resa)

2. real estate development marketing act (redma)

28
Q

what are the 5 organizions created by RESA??

A
  1. real estate council
  2. superintendent of real estate
  3. real estate foundation
  4. real estate errors and omissioins insurance
  5. real estate compensation fund
29
Q

what does the real estate council do?

A 
responsible for rules, regulations and by laws
renew license
can suspend licenses
can order re education as a penalty
can reprimand licensees

licensee fees pay for council expenses

30
Q

how many reps are on the real estate council

A

16

31
Q

real estate council and real estate superintendant do not do what?

A

law reforms (change laws)

32
Q

who can cancel licenses and who can cancel memberships

A

council- can cancel license

board - can cancel membership

33
Q

how many members in the real estate foundation?

what is the foundations main purpose

A

5 members

-help the “public” in education
does real estate law reform
does real estate research

34
Q

who does real estate law reform

A

real estate foundation

35
Q

real estate errors and ommisions, what does it do?

how many members are there?

A

protects realtors when something happens, if a claim is made, the realtor must pay 2000 deductable and has 1 million dollars insurance
also the realtor pays $250 per year

if the realtor does any fraud or dishonest, he/she will NOT be covered!!!! also, doesnt have anything to do with commisions

members: 7

36
Q

what is the real estate compensation fund

A

it looks into any money that goes missing from the trust account

37
Q

what are the two voluntary organizations?

A
  1. bc real estate association

2. real esate boards

38
Q

what is the bc real estate association for?

A
  • provides ongoing education

- advances education for real estate

39
Q

what is the real estate board for?

A
  • code of ethics

- also provides the mls(where you research buyers and sellers)

40
Q

real estate development marketing act- what are the rules of the disclosure statement?

A
  1. must be prepared by the developer
  2. must be filed with the superintendent of real estate
  3. must be in the forms required by the superintendent of real estate
41
Q

(redma) how many lots are required in order for a developer to have to provide a disclosure?

A

5 lots in a subdivision

42
Q

what does it mean to rescind (rescission rights)

A

after a purchase has agreed to buy from the developer, the purchaser has 5 days to back out of the agreement

43
Q

what are the 3 real estte services within the real estate services act?

  1. constructing a mall, trading services, home construction
  2. construction, trading, selling
  3. trading, strata property management and rental property management
  4. slling, buying, trading
A
  1. trading, strata property management and rental property management
44
Q

to receive a license, a managing broker must be of good reputation with 2 years of experience anywherei canada/yukon. he must also….

  1. submit his own personal financials required by the council
  2. readall the disclosure information
  3. submit financial statements of all licensees they will hire
  4. file and prepare the disclosure statements of the developer with the superintendant
A
  1. submit his own personal financials required by the council

tricky- licensees do not have to submit financial statements, i think it was thinking after they were hired, but it means when they are hired

45
Q

what categories are exempted from the licensing requirements?

  1. mrs jones selling her neighbors home for $1,000
    b. property inspectors
    c. strata managers
    d. employees of a developer selling developer units
  2. a and d
  3. b and d
  4. a and c
  5. b and c
A
  1. b and d

the correct answer is actually b, c and d!! the key thing is that if you are not charging for the sales service, you are exempt of licensing

46
Q

real estate council is not responsible for law reform or enforcing the code of ethics. real estate council may investigate a licensee of misconduct without a courts permision ____

  1. only before becoming a licensee
  2. only after becoming a licensee
  3. anytime
  4. after 2 years of holding a license
A
  1. anytime
47
Q

a developer is who is not exempted from the disclosure requirement under the REDMA. he or she must provide a disclosure statement to the ______ before writing the purchase agreement and the ____ has 7 days to rescind the contract

  1. superintendent of real estate, purchaser
  2. purchaser, purchaser
  3. plaintiff, purchaser
  4. licensee, licensee
A
  1. purchaser, purchaser

tricky-dont let the superintendent fool you on this one

48
Q

a brokerage license may be issued to a corporation if

  1. the managing broker hired is licensed in all 3 types of services
  2. the brokerage statements are filed with the errors and omission
  3. the managing brokeer has been providing real estate services in canada/yukon for 2 years within the last 10 years
  4. none of the above
A
  1. none of the above

only need 1 type of service to become broker
statements are filed to the superintendent
it is 2 years service within past 5 years

i think the word “coroporation” confused me

49
Q

which statement is true?

  1. a brokerage is a physical location that must be a partnership or corporation
  2. brokerages must have a licensed managing broker and with or without an associate broker
  3. a licensee cannot work independently and for more than 1 brokerage
  4. all of the above
A
  1. all of the above
50
Q

what are the powers and the duties of the real estate council

  1. hold disciplinary hearings
  2. levy fees on licensees for council expenses
  3. collect fees from licensees for the indemnity plan errors and omissions
  4. all of the above
A
  1. all of the above
51
Q

under which circumstanaces do thes real estate service act permit the brokerage to withdraw money from the trust account

a. instructions of the owner to whom the money was deposited
b. money for commission of the boker
c. money deposited by mistake
d. money required for brokerage expenses

  1. a + b + c
  2. a + b + d
  3. b + c + d
  4. none of the above
A
  1. a + b + c
52
Q

which of the following statements regarding commision are true?

a. a licensee must disclose to his or her brokerage the full amount of commisions received or expected to be received
b. commision may not be based on the difference between the list price and the sale price (net)
c. real estate trading services must be provide to the seller according to a written service agreement
d. the real estate services act restrics a licensee from charging commision lower or higher than other brokerages

  1. a + b
  2. a + c
  3. b + c
  4. b + d
A
  1. a + b
53
Q

which of the following will not qualify as a real estate service?

  1. selling a warehouse in kelowna for your sister living in toronto
  2. collecting deposits for the use of real estate for tenants
  3. collecting strata fees
  4. constructing a home for the managing broker for a small fee
A
  1. constructing a home for the managing broker for a small fee
54
Q

which of the following guidlines of the real estate council with respect to th teams must be followed?

a. licensed team members must be licensed by the same brokerage
b. licensed team members must inform the council if any member leaves or joins the team
c. a managing broker must have 2 years of experience within bc/yukon or canada
d. a listing must identify all unlicensed persons in an advertising of the listing

  1. a and b
  2. a, b and d
  3. all of the above
  4. none of the above
A
  1. a and b

ravi (20 decks)

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