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Fundamentals of Real Estate > Unit 4: Brokerage > Flashcards

Unit 4: Brokerage Flashcards

1
Q

The only legal entity authorized to trade in real estate by RECA is…

A

a brokerage

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2
Q

How many associate brokers can a brokerage employ?

A

There is no limit. Nor is there a limit to the number of associates. However only one Broker may be employed.

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3
Q

Does the Broker need to be the owner of the Brokerage?

A

No - they can just manage it on behalf of the owner

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4
Q

What are the three components of leadership?

A

1) Authority
2) Responsibility
3) Accountability

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5
Q

What are the 3 steps to becoming a Broker?

A

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)

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6
Q

What are the Rules for broker delegation?

A
  • 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
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7
Q

What 3 types of insurance should an agent consider acquiring?

A
  • 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)
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8
Q

REIX is administered under the guidance of…

A

an Advisory Board appointed by RECA

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9
Q

REIX is a form of reciprocal insurance, so each incident / lawsuit against a brokerage or agent is paid from…

A

the collective premiums of all brokerages and agents that contribute.

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10
Q

Who collects the premiums on behalf of REIX?

A

RECA. Payment is due when the licensing fees are also due, on Sept 30 each year.

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11
Q

If an agent fails to lock a door upon leaving and the house is vandalized, which insurance would cover this?

A

General Liability Insurance

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12
Q

What is the REIX deductible?

A

$3,500 for first claim
Any further claims within 3 years of that is $7,000

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13
Q

How much does REIX cover per claim?

A

A limit of $1,000,000

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14
Q

What are some root causes of disputes / complaints?

A
  • Assumptions (failure to understand expectations)
  • Omissions (an act missed)
  • Commissions (an act done that shouldn’t have)
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15
Q

What are the 3 types of reactions to disputes?

A

1) Physical Reactions (tension, sweating, headache)
2) Cognitive Reactions (observing, listening, reflecting)
3) Emotional Reactions (frustration, fear, sarcasm, self-doubt)

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16
Q

Professional Courtesy is …

A

notifying a colleague of a minor mistake or error

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17
Q

VBRP stands for the…

A

Voluntary Broker Resolution Process

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18
Q

VBRP includes both:

A

Negotiations and Mediations (internal and external resolutions)

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18
Q

Benefits of VBRP include:

A
  • 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
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19
Q

What is Arbitration?

A

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

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20
Q

Legal Action involves the…

A

complainant suing the agent / real estate brokerage

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21
Q

REP is the…

A

annual re-licensing program requirements set by RECA

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22
Q

Examples of personal information include:

A
  • Name
  • Address
  • Email
  • 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.
23
Q

FOIPP covers personal info collected by AB government, but PIPA covers…

A

private sector organizations collecting info for commercial activities (ex. real estate trades)

24
Q

What are the 10 Privacy Principles?

A

1) Accountability
2) Identifying Purposes
3) Consent
4) Limiting Collection
5) Limiting use, disclosure and retention
6) Accuracy
7) Safeguards
8) Openness
9) Individual Access
10) Challenging Compliance

25
Q

What are the 3 types of Consent?

A

1) Express Consent (clear opt-in)
2) Implied Consent (individual volunteers info)
3) Opt-Out Consent

26
Q

How much time must pass for an individual’s personal information to become available without consent?

A

20 years since their death or 100 years since original collection

27
Q

The Real Estate Act requires brokerages to retain records of any real estate details for a minimum of..

A

3 years after they come into existence

28
Q

Privacy Officers must respond to requests for personal info within how many days?

A

Within 45 days

29
Q

You can lawfully withhold personal info in these circumstances:

A
  • Reveals info about anyone else
  • Threatens life or security of anyone
  • Info protected legally
  • It would reveal restricted business info
  • It was originally collected for legal reasons
  • If disclosure meant that info wasn’t shared anymore
  • Generated in dispute resolution process
30
Q

If convicted of an offence under PIPA, an agent could face fines up to _____________ and a brokerage could be fined up to _____________

A

$10,000 and $100,000

31
Q

Under the real estate act, this info is considered personal info:

A
  • Motivations of sellers, buyers, landlords or tenants
  • Price the seller will sell for or that the buyer will buy for
  • Net worth of business
  • Assets / Liabilities of business
  • Existence of other offers / agreements
32
Q

Personal information that was collected before privacy legislation came into effect is called…

A

Legacy Information (it is still protected under original purpose for consent)

33
Q

Can you take client lists with you when you switch to a new brokerage?

A

No, consent was given to the original brokerage, not you.

34
Q

Can I send marketing materials to local property owners in my area?

A

Yes, as long as their info was obtained from public records.

35
Q

Can I advertise the price of a property I sold to get new business?

A

No, it is considered confidential info and would require consent in writing.

36
Q

What are the 2 areas of unfair / anti-competitive practices described in the Competition Act?

A
  • Conspiracy among competitors (collusion)
  • False / misleading advertising
37
Q

Examples of conspiracies among competitors include:

A
  • Price-fixing
  • Market Division
  • Service Restriction
  • Service Refusal
38
Q

How to avoid anti-competitive conversations:

A
  • Don’t talk about fees, commissions or splits
  • Don’t imply that commission fees are fixed
  • Don’t agree to dividing the market
  • Don’t discuss market or business plans with competitors
  • Don’t discriminate against brokerages with lower commission rates
39
Q

How to test for whether an ad is misleading:

A
  • General Impression given
  • If it influences purchasing decision (material respect)
  • If info is omitted
40
Q

What two types of criminal operations illicit funds through money laundering?

A
  • Organized crime groups
  • Terrorist groups
41
Q

3 Goals of money laundering:

A

1) Convert crime proceeds to less suspicious forms
2) Conceal criminal origins of funds
3) Create legitimate explanations for source of funds

42
Q

What is Property Manipulation Scheme (money laundering)

A

Purchase a property using dirty money (for down payment) then changing value to launder illicit funds.

43
Q

What is Cash Purchases (money laundering)

A

buying expensive items like boats, cars and real estate in the name of another person. Resells to a legitimate buyer after.

44
Q

What is Transaction Manipulation (money laundering)

A

Seller agrees to falsify transaction documents, agreeing to a lower price, but accepting dirty money from seller for the difference.

45
Q

What does PCMLTFA stand for?

A

The Proceeds of Crime, Money Laundering, and Terrorist Financing Act (federal legislation)

46
Q

What does FINTRAC stand for?

A

Financial Transactions and Reports Analysis Centre of Canada (federal agency)

47
Q

Brokerages must report all cash transactions over ___________ to FINTRAC

A

$10,000

48
Q

Brokerages must report transactions to FINTRAC that meet the following criteria:

A

1) Any aspects that make them suspicious
2) Are all cash or largely composed of cash
3) Include international money transfers

49
Q

Suspicious transactions may include:

A
  • ones that include a cash deposit with the contract
  • ones where the buyer/seller is an unregistered charity
  • ones where the buyer / seller identity is not clear
  • if a series of similar transactions has been made by the same or related parties
50
Q

Conviction for failure to retain records of the identities of buyers/sellers could lead to fines of _________ or ____ years imprisonment (or both)

A

$500,000 and 5 years

51
Q

What identification is required from clients?

A

Government issued ID with a clear, unique identified number (and ideally photo id)

52
Q

If a buyer is a corporation what ID is necessary?

A

Confirmation of registration and where it is registered. Also checking that the individual is an officer that has authorization to complete the transaction on the company’s behalf.

53
Q

Employers must conduct a ____________ that includes identifying any existing / potential risks in the workplace.

A

Hazard Assessment

54
Q
A

Fundamentals of Real Estate (19 decks)

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