Real Estate Act Practice Quiz Flashcards
In order for certain documents to serve as enforceable contracts, they must be in writing. Which types of documents must be in writing?
Amendments to a real estate agreement
Legal description of land
Terms and conditions of a sale of real estate
Major changes to the 1947 Real Estate Agents Licensing Act
Every agent had to have an office in Alberta where they could receive notices
It expanded the definitions in the act significantly. Most notable was the inclusion of the definition of real estate
Agents now had to keep trust accounts with a bank or Alberta Treasury Branch
No agent could employ an unlicensed salesman
What is self-governance
The right to determine how members of the group should behave
The right to decide what qualification an individual must meet to join a group
The right to decide under what circumstances a member should be ejected from the group
The following individuals are exempt from requiring a real estate license
A practicing Alberta lawyer (not retired and not suspended)
A person who trades only in mineral rights rather than surface rights
A person who has 25% or more interest (ownership in the real estate and sells it, or who is the employee or agent of someone who does
What is not a main purpose of RECA?
To provide professional development, advocacy and member services to Alberta’s real estate professionals
Which of the following statements are true regarding the REA bylaws
Bylaws are mini laws that set out how an organization should function
Bylaws are how RECA fulfills its purpose around administering the REA
The bylaws cannot be in conflict with the REA or other legislation put in place by the government
The various industry councils can only make rules which
Apply in the course of the business of a license
If a agent is not paid their commission and the choose to escalate the matter to the courts, what conditions are required
The person claiming the commission must be licensed
The real estate transaction must have successfully gone through or int he case of property management, the client must have received the services
The service agreement must be in writing
Can real estate agents be paid on the difference between the list price and the sale price
No
What documents may the practice review auditor request to see
Accounting records for a specified period of time
The brokerage’s policies or procedures
Trust account details
Purposes of RECA practice reviews
Can trigger a formal process called a Proceeding, if the auditor notices a problem
Allows RECA to ensure that licensees are running their businesses properly
Reduces the number of claims against the assurances
What criteria will a RECA auditor consider before recommending an investigations team become involved
Are there indications of intent or recklessness on behalf of the broker
Is this first time behavior or is there a repeated pattern of this behavior
Could there be serious consequences to the public
Special powers of the Registrar
Periodic Inspections
Receiving orders
Orders to freeze assets
Two panels that are established under the investigations process
Hearing panel
Appeal panel
Days to appeal Registrar’s decision
30 days
Part 2 of the Ministerial regulation in the REA are centered around
Real Estate Assurance Fund
Most common type of tort law in real estate?
Negligence
The principal in an agency relationship is the agent or the client
Client
Main difference between a client and a customer
Client is in an agency relationship with a licensee, whereas a customer is not
Standards of Conduct for brokerages
They can only use their license when trading in real estate
They must not employ someone to do a licensee’s work if they’re not licensed
They must not employ anyone registered in another brokerage’s name
What are the licensee’s basic obligations to a seller in a sole agency relationship
To act only as the seller’s agent (unless there is a brokerage transaction agreement)
To use reasonable care and skill in performing services under the agreement
To keep the seller updated on progress
To let any interested buyer know that the licensee represents the seller as soon as possiblr
What are the licensee’s basic obligations to a buyer in a sole agency relationship
To follow the buyer’s instructions
To do their best to find a property that meets the most important requirements of the buyer
To let any seller know they represent the interested buyer as soon as possible
What is the best definition of designated agency
An individual licensee who is designated in writing by a brokerage to serve as a sole agent for a buyer or seller in a trade in real estate
True or false: Transaction Brokerage cannot occur in a Common Law brokerage
False, a common law brokerage can use transaction brokerage to prevent a conflict of interest from occurring between buyer and seller clients interested in the same property
What is the purpose of a customer status acknowledgement form
To protect the brokerage from risk of a lawsuit should the customer try to state that the brokerage did not adhere to its fiduciary duties
What can a agent do for a customer
Keep the customer informed
Provide real estate statistics and comparable property information
Promptly present all offers and counter-offers
True or False: A real estate professional cannot represent themselves in a real estate transaction
False
Which situations are not covered by REIX
Water Damage
Injury occurring in a property listed by your brokerage
Damage arising while check a vacant property
Court decision determining that the activity of the offending party was grossly unreasonable
The REA bylaws themselves require that they be reviewed how often?
Every three years
If a client does not want to agree to a transaction brokerage scenario the agent can choose to
Treat the client as a customer
Contact another brokerage to ask if they will represent the second party in the transaction
