Unit 1 - The Real Estate Profession

Question 1

What percentage of Nova Scotia’s population lives in Halifax?

Answer 1

40% of NS pop live in HRM

Question 2

What percentage of HRM residents are under age 45?

Answer 2

65% of HRM residents are under age fo 45

Question 3

How much do new home buyers usually spend additionally over what they would for a used home?

Answer 3

20-40 cents for every dollar on things like landscapers, decorating, appliances, etc that’d usually be done on used home.

Therefore, they have a bigger ripple effect in the economy.

Question 4

What is a brokerage and broker?

What about a managing associate broker?

Associate broker?

Answer 4

A brokerage is a business registered in Registry of Joint Stocks which is authorized to trade in real estate.

A broker is licensed by the commission and operates the brokerage and therefore permitted to trade in real estate on behalf of that brokerage.

So a managing associate broker assists broker with managing the brokerage.

The associate broker has same qualifications as the two above but does not manage the brokerage.

Question 5

What is a salespersons?

And who licenses them?

Answer 5

salespersons trade in real estate on behalf of the brokerage.

They are licensed by the NSREC.

Question 6

What is an approved sales corrporation?

Answer 6

An approved sales corporation is like a salesperson but just incorporated. So they are still trading on behalf of a brokerage and have to go through the same licensing.

Question 7

What is the difference between employee v. indepdentend contractor in terms of relationship between brokerage and salespersons?

Answer 7

With employers, a contract OF service exists.

With independent contractors, a contract FOR services does.

Question 8

The first number in the commission split that a salesperson has with a brokerage is what?

Answer 8

The first number in the commission split that a salesperson has with a brokerage is always the salesperson’s portion.

Question 9

What is the difference between commission split, allocation, and distribution?

Answer 9

Commission split is between brokerage and salesperson.

Commission distribution is when more than one brokerage is involved (so listing and selling brokerage are different), which is most common.

Commission allocation is when there is just one brokerage for both listing and selling, so commission is allocated between listing and selling portions and then split with respective salesperson(s)

Question 10

What are the ten standing committees in NSAR?

Answer 10

1. Education
2. Professional Standards
3. Conduct Review
4. Arbitration
5. Provincial Broker Manager
6. Scholarship
7. MLS
8. Government Relations
9. Finance
10. Bylaw

Question 11

What are the ten standing committees in NSAR?

Answer 11

1. Education
2. Professional Standards
3. Conduct Review
4. Arbitration
5. Provincial Broker Manager
6. Scholarship
7. MLS
8. Government Relations
9. Finance
10. Bylaw

Question 12

NSREC is our commission that sets regulations to promote professionalism and trust in the system. What are the 3 primary groups within it?

Answer 12

1. Voluntary board of directors (Commissioners, they set the policies and approve budget)
2. Six volunteer committees (such as discipline committee, licensing committee, etc)
3. Eight full-time staff members

Question 13

What are the 6 steps to go from nothing to salesperson, to broker/owner?

Answer 13

1. Licensing course (this one!)
2. Salesperson application (requires broker signature)
3. Approval
4. Continuing professional education (required annually)
5. Associate broker/broker (3 years as salesperson then you can complete broker licensing course)
6. Brokerage

Question 14

Describe the relationship between the commission (CREA + NSREC) and NSAR for the following:
Education
Mandatory Forms
Complains
Errors and Omissions

Answer 14

1. Education
   Commission sets curriculum and conducts exams
   Association develops course and continued education
2. Mandatory Forms
   Commision defines content and approves wording
   Association provides members with WEBForms
3. Complaints
   Commission fields public and non-association members
   Association handles member-to-member complaints
4. Errors and Omissions
   Commission makes it mandatory for all members to carry this insurance
   Association provides errors and omissions insurance to licensees

Question 15

What is the NSREC bylaw?

Answer 15

These are the regulatory requirements established and enforced by NSREC

Question 16

What is the real estate recovery fund?

Answer 16

This is a fund by NSREC to compensate consumers who suffer financial loss from fraud or breach of trust by an industry member in a real estate trade

Question 17

Whan can you use the realtor trademark?

Answer 17

Only when you are an active member of a real estate board/association affiliated with CREA. So you’ll need to be a member in order to put this mark on your site!

Question 18

What does ICI stand for?

Answer 18

Industrial, Commercial and Institutional sector

So commercial projects

Question 19

NSAR is made up of how many regions?

Answer 19

NSAR is made up of 7 regions

Question 20

Can the NSREC board of directors nullify a decision made by the registrar?

Answer 20

Yes, the NSREC board of directors can nullify a Registrar decision

Question 21

Who do members of the NSREC board of directors elect?

Answer 21

A chairperson and Vice Chairperson

Question 22

When do NSREC licenses expire?

Answer 22

Unless suspended or cancelled earlier, all licenses expire at midnight on June 30th following the date of issuance

Question 23

How long is a term for NSREC board of directors?

Answer 23

A term is 3 years

Question 24

What is the amplitude of a relat estate cycle?

Answer 24

The distance between the high and low points in that cycle