Unit 3-4: Risk reduction

Question 1

Risk reduction

Answer 1

proactive efforts of real estate brokerage and professionals to anticipate, reduce, eliminate exposures to risk

Question 2

Tort law

Answer 2

A wrong; private civil matter; personal injury, damage to reputation, damage to property
IS NOT breach of conduct

Question 3

Tort law functions

Answer 3

Compensate for injuries; shift cost of injuries to responsible party; discourage risky behaviour in future; vindicate legal rights

Question 4

Omission & commission

Answer 4

Failed to do something & did something you shouldn’t have done

Question 5

Negligent tort

Answer 5

Carelessness, etc that injures another

Question 6

Intentional tort

Answer 6

Aggressive willful injury to person or property
(trespass, slander, defamation, theft, fraud)

Question 7

Strict liability tort

Answer 7

certain act then responsibility for it and damages therefrom
(producing defective products, using hazardous materials, etc)

Question 8

Vicarious liability

Answer 8

one person is responsible for the actions of another (brokerage for agent) unless act occurs outside of business activities

Question 9

Recovery of funds

Answer 9

Consumers have 1 year from date of judgment to apply for fund compensation; statutory declaration also required
$35k per claimant maximum of $350k

Question 10

Errors and omissions insurance

Answer 10

covers claims from financial losses or damages related to errors, omissions, or negligence from RE practice, and includes legal defense costs