UNIT 4 - Real Estate Brokerage Flashcards
Amir is a real estate professional with Royal Peak Brokerage. He wants to sell his own home and asks his friend Melinda to list the property for him. Which of the following statements is correct in this scenario?
REIX would not cover Amir for any claim arising from the sale of his own property
REIX would not cover Melinda for an error or omission related the sale of Amir’s property
REIX would cover Melinda for an error or omission related to the sale of Amir’s house
Melinda would be covered by her comprehensive general liability assurance for any claim arising from the sale of Amir’s property
A) Statements 1 and 3
B) Statements 2 and 3
C Statements 3 and 4
D) Statements 1 and 4
E) All of the above
A) Statements 1 and 3
Which of the following are not covered under REIX?
- Activities that are not considered to be trades in real estates
- Damage to, or loss of, tangible property
- Disputes related to commissions or fees payable on a trade in real estate
- Personal trades by real estate professionals for their or their spouses’ benefit
A) Statements 1, 2 and 3
B) Statements 2, 3 and 4
C) Statements 1, 2 and 4
D) All of the above
D) All of the above
Which of the following actions may compromise REIX coverage?
- Failure to report incidents or disputes to REIX on a timely basis
- Failure to cooperate with REIX regarding the incident or dispute
- Admitting guilt or attempting to settle the incident or dispute without first consulting with REIX
- Involving REIX prior to going to court
A) Statements 1, 2 and 3
B) Statements 2, 3 and 4
C) Statements 1, 2 and 4
D) All of the above
A) Statements 1, 2 and 3
What is the limit of liability provided by REIX insurance policy?
one million / claim
Those that are engaged by the brokerage to trade in real-estate must ….
A) Be licensed by RECA and be registered with that brokerage
B) Trade in real estate only in the name of that brokerage
C) Receive commissions for trades in real estate only from that brokerage
D) All of the above
D
How many brokers can there be per brokerage?
One
But there is no restriction to the number of associate brokers and associates
True or False
The broker may be the owner of the brokerage or may be someone who manages the brokerage on behalf of the owner?
TRUE
What are the three steps to becoming a Real Estate Broker?
A) Complete REAP courses, Complete REBP Requirements and then Apply
B) Complete REBP Requirements, Complete REAP courses and then Apply
A) Complete REAP courses, Complete REBP Requirements and then Apply
True or False
In order to become a Broker you must have 3 years of Real estate experience as an associate within in previous 5 years in order to meet the requirements
False
In order to become a Broker you must have 2 years of Real estate experience as an associate within in previous 5 years in order to meet the requirements
Which of the following statements is correct for brokerages?
- A brokerage is the only legal entity authorized to trade in real estate by RECA
- A brokerage can have only one licenced broker
- There is no restriction on the number of brokers, associate brokers and associates that can be registered with the brokerage
- The broker, the associate brokers, and the associates can only trade in real estate in the name of the brokerage with which they are registered
Choose only ONE best answer.
A. Statements 1, 2 and 3
B. Statements 2, 3 and 4
C. Statements 1, 2 and 4
D. All of the above
C. Statements 1, 2 and 4
Which of the following statements is true for those engaged by the brokerage to trade in real estate?
- Be licensed by RECA and be registered with that brokerage
- Trade in real estate only in the name of that brokerage
- Receive commissions for trades in real estate only from that brokerage
- Receive referral fees from other industry professionals and brokerages
A
Statements 1, 2 and 3
B
Statements 2, 3 and 4
C
Statements 1, 2 and 4
D
All of the above
A
Statements 1, 2 and 3
What are the components of leadership?
- Authority
- Supervision
- Responsibility
- Accountability
Statements 1, 3 and 4
Authority, Responsibility and Accountability
Which of the following are the reasons because of which the broker has the authority to be the leader of the brokerage?
- The broker owns the brokerage and is responsible for the management of the brokerage
- They hold the applicable authorization issued by RECA
- This authorization is achieved through meeting the
education and experience requirements as established by RECA - A broker is registered with and approved to operate a real estate brokerage, and trade in real estate on behalf of that brokerage
Statements 2, 3 and 4 are correct - they do not need to OWN the brokerage (but they can)
John is a broker of Royal Oak Realty. He is leaving for vacation and delegates his duties to Priya, an associate broker with the brokerage. Which of the following is true about broker delegation of duties?
- The broker delegate must be capable of competently carrying out the duties
- The delegation details are clear, in writing, and understood by both the broker and the delegate
- The particulars of the delegation are communicated to the other brokerage licensees and the staff
- The delegate becomes accountable for the actions of the brokerage as well as the conduct of its administrative staff and real estate professionals
Statements 1, 2 and 3
Malaki is a real estate professional High Point Realty, just starting his real estate career. He has always been ambitious and would like to move up the career ladder in real estate. How many years of experience does Malaki need to become a broker?
A
5 years
B
10 years
C
2 years
D
3 years
C
2 years
Which of the following are the duties and obligations of Real estate professionals?
- To act on behalf of the brokerage
- To follow the policies and procedures of the brokerage
- To comply with the Real Estate Act, Rules, Regulations, and Bylaws
- To represent the themselves in the promise and provision of services
Statements 1, 2 and 3
Margaret is a real estate professional with Professional Realty Group. She is helping her buyer clients, Rob and Chantelle Thomas, purchase a property. After one of the showings, the front door of a property is left unlocked. The unsecured property is subsequently robbed and the sellers initiate a civil action against the real estate professional to compensate for their loss. Which insurance coverage will cover this incident?
A
Homeowners Insurance
B
Professional Liability Insurance.
C
Comprehensive General Liability Insurance
D
Real Estate Insurance exchange
C
Comprehensive General Liability Insurance
Explain Homeowners insurance
- buiz tools or equipment can be covered under this
- high potential for automobile accident claims driving to and from real estate appointments
Explain CGL insurance and give examples of when someone would need it
Comprehensive General Liability insurance
pertains to the insureds place of business and protects against
- falls / any civil liability action
- any damages or body injuries that the insureds business caused while at a customers location
- legal defense cost of the insured
examples:
- the front door of a property is left unlocked after a showing - the property is robbed and the sellers take a civil action against the real estate professional to compensate for their loss
following an open house the wood burning fireplace is not put out and house fills with smoke. sells take out a civil action against agent
a buyer meets her real estate agent at their home office to write an offer/ Which at the home office the buyer falls down on the icy front steps - breaks his ankle and is unable to work - take out a civil action against agent for lost wages
True or False Participation in Professional Liability insurance (REIX) is mandatory for all classes
also what’s REIX stand for
TRUE
Real Estate Insurance Exchange
What does the Comprehensive General Liability Insurance cover?
- Situations that may give rise to civil liability, such as a fall
- Disputes related to commissions or fees payable on a trade in real estate
- Any damages or bodily injury that the insured’s business caused while at a customer’s location
- Legal defense costs of the insured if the matter is within the scope of the policy
Statements 1, 3 and 4
Which of the following does Real Estate Insurance exchange (REIX) cover?
A
Fraud, breach of trust and failure to disburse money
B
Errors, omissions and negligent acts
C
Errors, omissions and breach of trust
D
Fraud, breach of trust and errors and omissions
B
Errors, omissions and negligent acts
Who is responsible for administering REIX?
A
RECA
B
The Council
C
The Advisory Board
D
Minister of Service Alberta
C
The Advisory Board
Sam is a real estate professional with Pro Realty Services. A buyer meets Sam at his home office to write an offer on a property. While exiting the home office, the buyer falls down the icy front steps, breaks his ankle, and is unable to work for five months. The buyer initiates a lawsuit against Sam for his lost wages. Which insurance coverage will cover this incident?
A
Homeowners Insurance
B
Professional Liability Insurance.
C
Comprehensive General Liability Insurance
D
Real Estate Insurance exchange
C
Comprehensive General Liability Insurance
Which of the following statements is correct for Real Estate Insurance exchange (REIX)?
- REIX is mandatory for all classes of real estate licences in Alberta
- REIX is administered under the guidance of an Advisory Board appointed by RECA
- RECA collects the premiums for the program on behalf of REIX when licences are renewed on September 30 of each year
- REIX is a reciprocal insurance program represents a pooling of risk for all classes of licences in real estate
ALL OF THE ABOVE
What is the deductible for REIX?
A
$3,500 for the first claim and $7,000 for any subsequent claims within three years of the first claim
B
$2,500 for the first claim and $5,000 for any subsequent claims within three years of the first claim
C
$3,500 for the first claim and $7,000 for any subsequent claims within two years of the first claim
D
$2,500 for the first claim and $5,000 for any subsequent claims within two years of the first claim
A
$3,500 for the first claim and $7,000 for any subsequent claims within three years of the first claim
Rob, a real estate professional with Mozaic Realty, is holding an open house for his seller clients. Following the open house, there’s a rainstorm and water accumulates in the bedroom because a window is left open, ruining the brand-new carpet that the seller had installed. The seller files a civil action against the real estate professional for the damage to the property. Which insurance coverage will cover this incident?
A
Homeowners Insurance
B
Professional Liability Insurance.
C
Comprehensive General Liability Insurance
D
Real Estate Insurance exchange
C
Comprehensive General Liability Insurance
Which of the following are the benefits to the REIX program?
- The real estate profession has as active role in managing risk
- The program is independent of the commercial insurance market, therefore, incidents such as weather events or natural disasters do not affect the cost of the program
- Premiums reflect the activities of subscribes within their specific provincial jurisdiction
- There is a potential to save on insurance costs as the program is not focused on profit
All of the above
Amir is a real estate professional with Royal Peak Brokerage. He wants to sell his own home and asks his friend Melinda to list the property for him. Which of the following statements is correct in this scenario?
REIX would not cover Amir for any claim arising from the sale of his own property
REIX would not cover Melinda for an error or omission related the sale of Amir’s property
REIX would cover Melinda for an error or omission related to the sale of Amir’s house
Melinda would be covered by her comprehensive general liability assurance for any claim arising from the sale of Amir’s property
A
Statements 1 and 3
Which of the following are not covered under REIX?
Activities that are not considered to be trades in real estates
Damage to, or loss of, tangible property
Disputes related to commissions or fees payable on a trade in real estate
Personal trades by real estate professionals for their or their spouses’ benefit
All of the above
Which of the following actions may compromise REIX coverage?
Failure to report incidents or disputes to REIX on a timely basis
Failure to cooperate with REIX regarding the incident or dispute
Admitting guilt or attempting to settle the incident or dispute without first consulting with REIX
Involving REIX prior to going to court
Statements 1, 2 and 3
Reciprocal insurance represents?
A pooling of risk - subscribers agree to create a pool of money to be used to satisfy claims
Benefits of REIX ?
- The insurance program enhances the image of the real estate profession
- the real estate profession has an active role in managing risk by operating the program, resolving the claims and gathering loss information
- there is a protentional to save on insurance costs
- incidents such as weather events do not effect the cost of the program
- premiums reflect the activities of the subscribers within their province
TRUE OR FALSE
RECA collects the premiums on behalf of REIX in terms of licensing fees
TRUE
these fees are due when someone becomes authorized by RECA
- on Sept 30th each year with normal license
Anything a brokerage offers or gives to a person who is, or could be, a party to a real estate or mortgage transaction, meant to assist, persuade or cause that person to enter into a particular real estate or mortgage transaction describes which of the following ?
A) Inducement
B) Incentive
C) Referral
D) Enticement
A) Inducement