UNIT 1 - RESIDENTIAL REAL ESTATE CLIENTS

Question 1

Joan, a real estate professional is representing Hugh in the sale of his condominium. Hugh receives and offer and asks Joan for her advice. Joan is expected to perform which general obligations to Hugh?

Choose only ONE best answer.

A) Negotiate favorable terms
B) Obey his lawful instructions
C) Act honestly and in person
D) All actions apply

Answer 1

D) All actions apply

Question 2

James is real estate associate working with Royal Oaks Realty. He recently attended a privacy training at his brokerage and is aware that there are potential risks to the privacy and confidentiality of client information. Of the following situations, which ones should concern James?

1. Talking on the phone to a client in the food court
2. Encrypting client information stored electronically
3. Throwing away expired listing documents at the recycling depot
4. Viewing client files during a brokerage monthly meeting

Answer 2

Statements 1, 3 & 4 should SERIOUSLLLY concern James

Question 3

Mia, a real estate associate is working with her buyer clients Tod and Helen. She does a thorough research on the property that her clients want to put an offer on to ensure the information that she provides is complete and accurate. Which general obligation is Mia demonstrating?

Choose only ONE best answer.

A) Exercise care and skill
B) Act honestly
C) Perform mandate
D) Maintain confidentiality

Answer 3

A) Exercise care and skill

General / Due Diligence activities include:

1. Property rights, ownership and limitations (found of title)
2. Registered interest on the property title
3. Property boundaries (Real Property Report - RPR)
4. Restrictions imposed by bylaws
5. Compliance with bylaws, regulations and permits
6. Property measurements
7. Defects
8. Taxes
9. Other client concerns (noise considerations & criminal activity)

Question 4

Henry signs a written service agreement with his buyer clients. As a result, he now owes Fiduciary duties to his clients. Fiduciary duties are based on which three fundamental principles?

1. Acti n person
2. Loyalty
3. Trust and confidence
4. Best Interests

Choose only ONE best answer.

A) Statement I, II, and III
B) Statement I, III, and IV
C) Statement II, III and IV
D) Statement I, II and IV

Answer 4

C) Statement II, III and IV

Question 5

Which of the following are fiduciary duties that real estate professionals owe clients to their clients?

Provide utmost loyalty
Avoid conflicts of interest
Disclose clients’ confidential information
To account
Choose only ONE best answer.

A) Statements II, III, and IV
B) Statements I, II, and IV
C) Statements I, II, III and IV
D) All statements apply

Answer 5

B) Statements I, II, and IV

Fiduciary Activities include;

1. Provide utmost loyalty
2. Not make secret profits
3. Handle confidential info property
4. To account
5. Avoid Conflicts of interest (Brokerage, Competing, Opposing)
6. Disclose conflicts of interest

Question 6

Amy, a real estate associate with ANC Realty shows her buyer clients a property that would make an excellent investment. This is the type of property that she would like to add to her own real estate portfolio. However, her clients are also interested in putting an offer on the property. Therefore, Amy helps her clients negotiate a great deal on the property. Which fiduciary duty is Amy demonstrating?

Choose only ONE best answer.

A) Maintain confidentiality
B) Obey lawful instructions
C) Provide utmost loyalty
D) Avoid unintended relationships

Answer 6

C) Provide utmost loyalty

Question 7

Harry and Monica have been unable to cover their mortgage payments after Harry got sick and lost his job. As a result, they’re now going to lose their home. Which of the following terms best describes the primary debt recovery method for default mortgages in Alberta?

Choose only ONE best answer.

A) Property seizure
B) Property conveyance
C) Discharge of mortgage
D) Judicial sale

Answer 7

D) Judicial sale

Question 8

Standard of care = the level of care that a reasonable and prudent real estate professional would have

True or False

Answer 8

TRUUUE

1. Professional standards
2. Professional Norms & Practices
3. Expert Testimony

Question 9

Anne, a real estate professional is using a virtual assistant as her administrative support. What type of procedures must she implement to ensure her virtual assistant protects her clients’ information?

1. Explain to the virtual assistant the brokerage’s privacy policies and procedures
2. Notify the clients whose personal information will be handled by the virtual assistant
3. Transfer client information to the virtual assistant in an unsecure manner
4. Confirm the virtual assistant has a privacy and procedures similar to the brokerage

Choose only ONE best answer.

A) Statements I, II, and III
B) Statements I, II and IV
C) Statements II, III and IV
D) All must be implemented

Answer 9

B) Statements I, II and IV

Question 10

When a transaction involves a Powerof Attorney (POA),what activities must a real estate professional perform?

Choose only ONE best answer.

A) Confirm the powers granted in the POA authorize the activities related to real property
B) Ensure the attorney is registered on the Certificate of Title by conducting a title search
C) Confirm the identity of the individual named as POA
D) You must perform all of these activities

Answer 10

D) You must perform all of these activities

Question 11

Which of the following measures determine standard of care for real estate professionals?

Choose only ONE best answer.

A) Professional norms and practices
B) Professional standards
C) Expert testimony
D) All of the above

Answer 11

D) All of the above

Question 12

A real estate professional, Graham, is working with Dave. Dave needs to sell his elderly mother’s home. What does Graham need to confirm is registered on the Certificate of Title in order for Dave to be able to act on her behalf in the real estate transaction?

Choose only ONE best answer.

A) Real Property Report
B) Assignment Agreement
C) Caveat or Lien
D) Power of Attorney

Answer 12

D) Power of Attorney

Question 13

Monica is a new real estate professional. She has lived in a condominium for over 20 years so she promotes herself to the public as a condo specialist. What should Monica know if she is claiming to be a condo specialist?

Choose only ONE best answer.

A) She will be held to a higher standard of care by the courts
B) She will need to get permission from RECA
C) She will be need permission from her broker
D) She will need to be part of the condominium corporation

Answer 13

A) She will be held to a higher standard of care by the courts

Question 14

Roy is a real estate professional with Asai Realty. He is contacted by James to help him purchase a property. Which RECA document must Roy provide James first?

Choose only ONE best answer.

A) Consumer Guide for Buyers and Sellers
B) Consumer Guide to Agency in Real Estate
C) Consumer Relationship Guide
D) Real Estate Consumer Guide

Answer 14

C) Consumer Relationship Guide

Question 15

Of the following statements, which on best describes a competent real estate professional?

Choose only ONE best answer.

A) A real estate professional who places their interest above their clients
B) A real estate professional who performs some due diligence activities for their clients
C) A real estate professional who agrees to provide services they are incapable of performing
D) A real estate professional who possesses the necessary ability and knowledge to perform services proficiently

Answer 15

D) A real estate professional who possesses the necessary ability and knowledge to perform services proficiently

Question 16

When working with a client, which activities will help real estate professionals meet the standard of care?

Choose only ONE best answer.

A) Focus on personal and professional development
B) Be informed on what’s happening in the market
C) Know the brokerages policies and procedures
D) All of the above

Answer 16

D) All of the above

Question 17

Why would a property be the subject of a judicial sale?

Choose only ONE best answer.

A) Divorce settlement
B) Mortgage debt
C) Unpaid condominium fess
D) All are reasons for a judicial sale

Answer 17

D) All are reasons for a judicial sale

Question 18

Which of the following describes a consumer who establishes a relationship with a real estate professional?

Choose only ONE best answer.

A) An agent
B) A client
C) A customer
D) An associate

Answer 18

C) A customer

Question 19

When buying a client list from a brokerage, which factors need to be considered?

Choose only ONE best answer.

A) The brokerage needs to obtain new consent from all clients on the list before disclosing their personal information
B) New consent needs to include the reason for collecting material, what information will be used for and to whom it is to be disclosed
C) Client information may no longer be accurate
D) All factors are to be considered

Answer 19

D) All factors are to be considered

Question 20

Why are real estate professionals held to a higher standard of care when working with a client?

Choose only ONE best answer.

A) When performing services require discretion and judgement
B) Have a full understanding of general obligations owed to clients
C) Gives rise to fiduciary duties when in a representation relationship
D) All are reasons for a higher standard of care

Answer 20

D) All are reasons for a higher standard of care

Question 21

How would a real estate professional ensure consumers understand the role of a real estate professional?

Choose only ONE best answer.

A
By disclosing the different types of real estate relationships

B
Identify the consumer’s needs in relation to the transaction

C
Establish a client representation relationship

D
Provide services as set out in the written service agreement

Answer 21

A

Question 22

Henry is a broker at Top Tier Realty. He has received a complaint from a client against one of his agents, Patricia. Which of the following outcomes may be a result if Patricia has failed to exercise care and skill when working with her clients?

Choose only ONE best answer.

A) Payment for any damages caused
B) Finding of conduct deserving of sanction
C) Commencement of legal action
D) All of the above

Answer 22

D) All of the above

Question 23

Which of the following are the examples of clients’ confidential information related to selling a property?

Reasons for selling the property
Buyer’s motivation for buying a property
The price the seller is willing to accept for the property
The offers they have received for the property

Choose only ONE best answer.

A) Statements I, II and III
B) Statements II, III and IV
C) Statements I, III and IV
D) ALl statments apply

Answer 23

C) Statements I, III and IV

Question 24

Pat is a new real estate professional with Highland Realty. He is approached by Jen, who wants to purchase a new home. Which document would Pat use to establish a representation relationship with Jen?

Choose only ONE best answer.

A
Written service agreement

B
Agent registration form

C
Consumer relationships guide

D
Customer acknowledgement form

This answer is correct.

Answer 24

A) Written service agreement