Unit 2-3: Industry professionals conduct Flashcards
RECA notification
All profs immediately tell RECA in writing of info changes; by mail, email or fax
Name change, address change, phone number change, email address change
Notify RECA executive director
via myRECA account
Fines, sanctions, disciplinary proceedings; bankruptcy etc; investigations; convictions under laws
Standards of practice
Unprofessional conduct:
behaviour that is immoral, unethical, dishonourable; deserving of sanction
-breaching ACT, RULES, regs, bylaws
- below industry standard
- non-business/personal conduct
Responsibilities
Honest, competent, payment details, fiduciary obligations fulfilled, disclose conflict of interest, follows act/rules/regs; cooperate; comply.
Duty of Care
Competent service: legal obligation to provide services to a certain standard
Trust funds
Brokerage is only entity able to receive trust funds or compensation from clients/customers
Agency
a representational relationship where someone acts on behalf of another to deal with a third party and accepts responsibility for this
Agency Law: Fiduciary obligations
Fiduciary is a person in position of trust and confidence to another person to act in their best interest; always put clients interests above own
Conflicts of interest
real or apparent incompatibility btwn prof interests and client interests
If advice to client or loyalty to client would be adversely affected by the conflict of interest
e.g.: when prof is party to transaction w/ brokerage’s client; when direct (20%+) or indirect ownership and property purchased by client of brokerage; when representing >1 party in same transaction; misuse of personal info; when getting commission from two sources in same transaction
Disclosure of defects
Sellers have to disclose material defects to their property; professional representing seller must disclose these
Material latent defect: cannot be discerned through reasonable inspection
Obligation to disclose defects
If owner asks realtor to not disclose, realtor must tell they are duty bound to disclose and refuse to provide further services unless instructions are withdrawn
Defect examples
Dangerous/potentially so to occupants;
unfit for habitation;
unfit for purpose of buying it; expensive to fix; getting gov’t/authority notice to fix something; lack of permits
RECA learner principles
1: actively engaged, best effort
2: honest, integrity, respectful
3: may assist other learners
4: support ed. req’ts
Misrepresentation
False or misleading statement or representation made by one party to another; non-disclosure, concealment
Negligent misrepresentation
False or misleading statement made when believed it to be true; assured self of accuracy
Reckless misrepresentation
Mislead by accident, but didn’t fact check; confuse; mislead
Intentional misrepresentation
Know it’s wrong and do it anyways
Good characteristics
Respect for law
honesty
governability
financial responsibility
professionalism
Conduct breach
defamation
harassment
unprofessional conduct
disregard for public safety
Service agreement
agree to hire or engage brokerage to act on their half in RE transaction; must be in writing
outlines roles and responsibilities of parties; client gets a true copy of agreement and amendments
Personal info proection act
provincial privacy act (PIPA)
Personal info protection and e-doc act of Canada
Federal privacy legislation (PIPEDA)
Referrals
If receiving a fee for a referral must be disclosed to client - duty of confidentiality
Secret commissions are criminal offence
Need client consent to release info
Brokerage pays; keeps documentation
Safely handle referrals for fee
Provide list of 3 professionals
Disclose existing relationships
Advise client referral is not guarantee of service quality
Client can call, interview, select professional on own
Document discussions with client
