Unit 4: Brokerage Flashcards
(55 cards)
The only legal entity authorized to trade in real estate by RECA is…
a brokerage
How many associate brokers can a brokerage employ?
There is no limit. Nor is there a limit to the number of associates. However only one Broker may be employed.
Does the Broker need to be the owner of the Brokerage?
No - they can just manage it on behalf of the owner
What are the three components of leadership?
1) Authority
2) Responsibility
3) Accountability
What are the 3 steps to becoming a Broker?
1) Complete all REAP area of practice courses (real estate, commercial, mortgage, management)
2) Complete REBP courses (specific broker courses)
3) Apply to a Brokerage to become their Broker (must have at least 2 years associate experience in last 5)
What are the Rules for broker delegation?
- Delegate must be with same brokerage
- Delegate must be capable
- Delegation details are clear
- Delegation details shared among brokerage staff
- Broker can still monitor delegate and supervision
What 3 types of insurance should an agent consider acquiring?
- Homeowner’s Insurance / vehicle insurance (home office equipment, car accident)
- Comprehensive General Liability Insurance (ex. theft after forgetting to lock, client slips on ice, water left on, etc.)
- Professional Liability Insurance (Through REIX - MANDATORY)
REIX is administered under the guidance of…
an Advisory Board appointed by RECA
REIX is a form of reciprocal insurance, so each incident / lawsuit against a brokerage or agent is paid from…
the collective premiums of all brokerages and agents that contribute.
Who collects the premiums on behalf of REIX?
RECA. Payment is due when the licensing fees are also due, on Sept 30 each year.
If an agent fails to lock a door upon leaving and the house is vandalized, which insurance would cover this?
General Liability Insurance
What is the REIX deductible?
$3,500 for first claim
Any further claims within 3 years of that is $7,000
How much does REIX cover per claim?
A limit of $1,000,000
What are some root causes of disputes / complaints?
- Assumptions (failure to understand expectations)
- Omissions (an act missed)
- Commissions (an act done that shouldn’t have)
What are the 3 types of reactions to disputes?
1) Physical Reactions (tension, sweating, headache)
2) Cognitive Reactions (observing, listening, reflecting)
3) Emotional Reactions (frustration, fear, sarcasm, self-doubt)
Professional Courtesy is …
notifying a colleague of a minor mistake or error
VBRP stands for the…
Voluntary Broker Resolution Process
VBRP includes both:
Negotiations and Mediations (internal and external resolutions)
Benefits of VBRP include:
- Faster resolution of issues
- Privately conducted (RECA and court orders are public records)
- Keeps costs lower than going to court
- Helps to mend relationships with consumers
What is Arbitration?
hiring arbitrators (mediation consultants) to hear each party’s perspective on a dispute and pass along their decision on resolution. Must confer with REIX prior to starting thigs
Legal Action involves the…
complainant suing the agent / real estate brokerage
REP is the…
annual re-licensing program requirements set by RECA
Examples of personal information include:
- Name
- Address
- Phone numbers
- DOB
- Gender
- Physical description
- Personal photos / videos
- Religion
- Marital status
- Citizenship
- Education
- Criminal History
- Employment info
- Medical History
- Political beliefs
- Income / finances
- SIN, driver’s license #, etc.
FOIPP covers personal info collected by AB government, but PIPA covers…
private sector organizations collecting info for commercial activities (ex. real estate trades)
