Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

RECA > UNIT 5 - Consumer Relationships > Flashcards

UNIT 5 - Consumer Relationships Flashcards

1
Q

WHAT IS GREENWASHING?

A) PAINTING A BUILDING GREEN TO MATCH NATURE
B) CONCERNVING WATER TO PROTECT THE ENVIROMENT
C) CONSERVING HYDRO TO PROTECT THE ENVIRONMENT
D) MAKING UNSUBSTANTIATED ENVIROMENTAL CLAIMS

A

D) MAKING UNSUBSTANTIATED ENVIROMENTAL CLAIMS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Sam Lee helps his client Amy buy her first home. Amy asks him about her rights that come with real property ownership. These include…

A) The right to rent her place
B) The right to possession, enjoyment and use of the property
C) The right to sell the property
D) The right to enter the property
E) All of the above

A

E) All of the above

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

The types of laws are made by the courts are

A) Client
B) Common Law
C) Statue Law
D) disclosure

A

B) Common Law

Common Law: Laws made by courts based on previous decisions on similar matters (precedence)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

2 Types of Laws are….

A

Statute Law: Laws passed by federal or provincial governments

Common Law: Laws made by courts based on previous decisions on similar matters (precedence)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

The party that works with, but is not represented by a REP

A) Customer
B) Client
C) Disclosure

A

A) Customer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the type of relationship where a real estate professional is working with a party to a trade in real estate but is not acting on their behalf called?

A) Agency relationship

B) Customary relationship

C) Non-representation relationship

D) Representation relationship

A

C) Non-representation relationship

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is the type of relationship where a real estate professional is working with a party to a trade in real estate and is acting on their behalf called?

A) Representation relationship
B) Statue law
C) Client
D) Non-representation relationship

A

A) Representation relationship

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

These types of laws are passed by governments

A) Statue Law
B) Acknowledgement
C) Client
D) Common Law

A

A) Statue Law

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Mary Thomas is a real estate professional with Polaris Realty. She signs a written service agreement with her client, Jen, to sell her property. Who is the real estate relationship that is established between?

Choose only ONE best answer.

A) The brokerage and Jen
B) Mary Thomas and Jen
C) The broker and Jen
D) The brokerage and Mary Thomas

A

A) The brokerage and Jen

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Fatima, a real estate professional with North Star Realty, receives a call from John who wants to list his property. Fatima meets John and explains the different types of relationships that can be established in real estate. What document does Fatima use to make the written relationship disclosure?

A) Consumer Relationships Guide
B) Client Relationship Guide
C) Written Service Agreement
D) Customer Acknowledgement Form

A

A) Consumer Relationships Guide

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

After going over the relationship disclosures, John signs a written service agreement with Fatima to list his property. What is this called?

Choose only ONE best answer.

A) Acting consistently with the relationship established
B) Documenting the relationship
C) Making relationship disclosures
D) Determining the relationship

A

B) Documenting the relationship

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Sophia is a real estate professional with True North Realty. She has recently listed her clients’ property for sale. An unrepresented buyer approaches Sophia. After viewing the property, he wants to write an offer on the property. What must Sophia do?

Choose only ONE best answer.

A) Document the relationship
B) Discuss the type of relationships
C) Disclose her representation capacity
D) Acting consistently with the relationship established

A

C) Disclose her representation capacity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Written disclosures provided by real estate professionals to consumers must include which of the following?

1.Whether the real estate professional has already entered into a representation relationship with another party to the real estate transaction

2.The services the real estate professional will supply to the consumer

3.Any conflicts of interest that may exist between the consumer and the real estate professional

4.Any additional facts or information that may influence the consumer’s decision to proceed with the real estate relationship

Choose only ONE best answer.

A. Statements 1, 2 and 3
Statements 2, 3 and 4
C. Statements 1, 3 and 4
D. All of the above

A

D. All of the above

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Which of the following is true about documenting relationships?

  1. If a consumer chooses a non-representation relationship with a real estate professional, he or she will be a customer
  2. Signing a customer acknowledgement form obligates the customer to working with the real estate professional
  3. If the consumer chooses a representation relationship with a real estate professional, he or she will be a client.
  4. The real estate professional must document a client relationship using a written service agreement
A

statements 1,3&4

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Which of the following actions do not create a representation relationship with real estate professionals?

  1. Real estate professionals conveying documents or providing general information to consumers
  2. Real estate professionals using certain terms to refer to consumers like client or customer
  3. Consumers using certain terms to refer to real estate professionals (e.g. real estate agent, lease agent, buyer’s agent, seller’s agent)
  4. Consumers paying remunerations to the real estate professional’s brokerage
A

All of the above

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Which of the following are the steps in the 5 Ds of Role Clarity and Consistency?

Choose only ONE best answer.

A. Discuss, Determine, Document, Disclose and Do
B. Decide, Document, Disclose, Do, Refer
C. Decide, Sign, Disclose, Do, Refer
D. Discuss, Determine, Sign, Disclose, Act

A

A. Discuss, Determine, Document, Disclose and Do

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What are the benefits of role clarity and consistently?

  1. Complies with regulatory requirements
  2. Prevents unintended real estate relationships
  3. Clarifies responsibilities owed to consumer
  4. Clarifies services to be provided to consumer
A

All of the above

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Debra is a real estate professional with Mozaic Realty. She has listed a property for her seller clients. Rajiv, a real estate professional with Rainbow Realty shows the property to Carr, who wants to write an offer on the property. How would Debra treat Carr?

A) As a client
B) As a customer
C) As a potential
D) As a principal

A

B) As a customer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

A customer is an individual or organization who has contacted but not engaged a real estate professional.

T/F

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Real estate professionals have limited responsibilities to customers and may only provide certain services to them, such as providing factual information (e.g. details about a property or local market) and administrative support (e.g. drafting an offer to buy or lease the property).

Real estate professionals cannot provide advice or opinions to customers nor may they advocate on behalf of customers

T/F

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Non-Representative Relation is to Customer

Representation Relationship is to _____________

A

Client

The party represented by a real estate professional is known as a client (e.g. buyer, seller, tenant or landlord).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Melissa is a real estate professional with Top Tier Brokerage. Under which of the following circumstances, would Melissa treat parties to the trade as customers?

  1. Consumer is represented by real estate professional with a different brokerage
  2. A party who is considering a trade with a client who is already represented by a brokerage
  3. Client of the brokerage trades with another client of the brokerage
  4. Consumer wants to be unrepresented in trade
A

all of the above

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Which of the following services may not be provided to customers?

1) Confidential advice
2) Any services that require discretion or judgement
3) Market statistics and information on comparable properties
4) Any advocacy or representation

A

statements 1,2&4

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Rita is a real estate professional with All Star Brokerage. She is approached by a customer who wants to write an offer on one of the properties she has listed. Which of the following services can Rita provide to customers?

1) Market statistics and information on comparable properties

2) Providing standard forms and agreements

3) Completing standard forms and agreements as per the customer’ s instructions

4) Delivering offers and counter-offers to and from the client and customer in a timely manner

A

All of the above

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Which of the following are situations in which a real estate professional may become liable to a customer?

1) When the real estate professional fails to disclose his or her role in a real estate transaction

2) When the real estate professional exercises due care preparing documents

3) When the real estate professional acts, but no authority has been granted for the action

4) When the real estate professional causes a tort

A

1,3,4

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

The Rules stipulate that written disclosure is needed whenever a real estate professional receives or is about to receive confidential information from a consumer. Confidential information may include the consumer’s real estate needs, motivation or financial ability.

T/F

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

How is standard of care determined for real estate professionals?

Choose only ONE best answer.

A) The real estate professional’s actions are compared to those of the top real estate professional in the industry under similar circumstances

B) The real estate professional’s actions are compared to how a reasonable and prudent real estate professional would act in similar circumstances

C) The real estate professional’s actions are compared to those of a new real estate professional in the industry under similar circumstances

D) All of the above

A

B) The real estate professional’s actions are compared to how a reasonable and prudent real estate professional would act in similar circumstances

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

The real estate professional’s actions are compared to those of a real estate professional with an expertise in that area under similar circumstances

The standard of care for real estate professionals is established using the following measures?

  1. Professional standards
  2. Professional norms and practices
  3. Expert testimony
  4. Personal Ethics
A
  1. Professional standards
  2. Professional norms and practices
  3. Expert testimony
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What is standard of care?

  1. A standard of care establishes the attention and caution that a reasonable and prudent person would exercise in a particular set of circumstances
  2. The standard of care is determined objectively, meaning it is based on facts
  3. The standard of care for real estate professionals is established based on professional standards, professional norms and practices and expert testimony
  4. To determine if a real estate professional has fulfilled his or her general obligations to a customer, the actions of the real estate professional are compared to how a reasonable and prudent real estate professional would act in similar circumstances
A

All of the above

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

How can real estate professionals help ensure that they meet the standard of care expected of them?

  1. Be aware of market and practice issues
  2. Make reasonable efforts to confirm information
  3. Provide their opinion to help navigate any issues that come up
  4. Exercise due care preparing documents
A

Statements 1, 2 and 4

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Shelly is a real estate professional who has been hired by an investor, Mark, to help him find a property or a few lots that can be assembled and developed into a multi-family housing project. As a result, Shelly approaches a number of owners of properties that would fit the Mark’s criteria. Which of the following would best describe Shelly’s relationship with the various parties?

Choose only ONE best answer.

A) Mark is the customer and the property owners are clients

B) Mark is the client and the property owners are customers

C) Both, Mark and the property owners are clients

D) Both, Mark and the property owners are customers

A

B) Mark is the client and the property owners are customers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

ln an agency, what is the party being represented by another party called?

A) The customer
B) The Third party
C) The principal
D) The agent

A

C) The principal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

ln an agency, what is the party acting on the principal’s behalf called?

A) The customer
B) The Third party
C) The principal
D) The agent

A

D) The agent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

ln an agency, what is the entity that exists outside of a representation relationship known as?

A) The client
B) The Third party
C) The principal
D) The agent

A

B) The Third party

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

What are the different types of authority that an agent may hold?

Express authority
Customary authority
Direct authority
Implied authority

A

Express authority
Customary authority
Implied authority

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

What is express authority?

Choose only ONE best answer.

A) Express authority involves describing orally or in writing what actions may be taken by an agent on behalf of a principal

B) Express authority involves undertaking any activities needed to accomplish an action on behalf of the principal

C) Express authority involves taking actions that are considered a widely accepted way of behaving under a particular circumstance

D) All of the above

A

A) Express authority involves describing orally or in writing what actions may be taken by an agent on behalf of a principal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

What is implied authority?

Choose only ONE best answer.

A) Authority involves describing orally or in writing what actions may be taken by an agent on behalf of a principal

B) Authority involves undertaking any activities needed to accomplish an action on behalf of the principal

C) In general, every agent has implied authority to do anything related to carrying out an express authority. If an agent ha been given express authority to carry out an action, then he or she has the implied authority to undertake any activities needed to accomplish that action

D) All of the above

A

C) In general, every agent has implied authority to do anything related to carrying out an express authority. If an agent ha been given express authority to carry out an action, then he or she has the implied authority to undertake any activities needed to accomplish that action

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Monica and Geoff are looking to purchase their first property. They hire Jessica from Royal Oak Realty to help them with the transaction. As a result, Jessica sets up a few showings for them. In this scenario, Monia and Geoff would be considered __________ and the property owners would be ________?

A) Customers, clients
B) Clients, customers
C) Third party, clients
D) Customers, Third party

A

B) Clients, customers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

What is implied authority?

Choose only ONE best answer.

A) Implied authority involves describing orally or in writing what actions may be undertaken by an agent on behalf of a principal

B) Implied authority involves taking actions that are considered a widely accepted way of behaving under a particular circumstance

C) Implied authority involves undertaking any activities needed to accomplish an action on behalf of the principal

D) All of the above

A

C) Implied authority involves undertaking any activities needed to accomplish an action on behalf of the principal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

Brandon is a real estate professional with Primerica Realty Group. He signs a written service agreement with Barbie and Ken Roberts to help them sell and market their home as they’ll need a bigger place to accommodate their growing family. What type of authority is represented in this scenario?

A) Express authority
B) Direct authority
C) Implied authority
D) Customary authority

A

A) Express authority

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

As a result of the express authority given by Barbie and Ken Roberts to list and market their house, the real estate professional, Brandon, uploads their property details to the multiple listing service, the brokerage database and the Home and Garden newspaper. What type of authority is represented in this scenario?

A) Express authority
B) Direct authority
C) Implied authority
D) Customary authority

A

C) Implied authority

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

Camil is a new real estate professional with Tradex Realty who has been hired by the Johnsons to sell their property. Camil knows that it’s a common practice for real estate professionals to a have a brochure with the property details for interested buyers to take with them after open houses and showings. He, therefore, creates a full colour brochure highlighting the property features and leaves it at the Johnsons house. What type of authority is represented in this scenario?

A) Express authority
B) Direct authority
C) Implied authority
D) Customary authority

A

D) Customary authority

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

Jamal, a real estate professional with Homelife Realty is holding an open house for his seller. Sheila and her husband Raja come in and instantly fall in love with the house. They tell Jamal that they’re interested in writing an offer on the house. Sheila and Raja would be considered Jamal’s _________ in this scenario?

A) Clients
B) Customers
C) Principals
D) Agents

A

B) Customers

44
Q

What is customary authority?

Choose only ONE best answer.

A) Customary authority involves describing orally or in writing what actions may be undertaken by an agent on behalf of a principal

B) Customary authority involves taking actions that are considered a widely accepted way of behaving under a particular circumstance

C) Customary authority involves undertaking any activities needed to accomplish an action on behalf of the principal

D) Customary authority involves signing a written service agreement with the client in order to act on their behalf

A

B) Customary authority involves taking actions that are considered a widely accepted way of behaving under a particular circumstance

45
Q

Limits on Authority Capacity to Contract. In order for an agent to enter into a contract on behalf of a principal, there must be an express written instruction from the principal granting the agent the authority to do so. The instruction should be specific regarding the condition s under which the agent is permitted to contract on behalf of the principal.

T/F

A

True

46
Q

Who is the principal and who is the agent?

A

The principal is the party who authorizes the other to act in their place, and the agent is the person who has the authority to act on behalf of the principal.

47
Q

There are certain capacities for which an agent must have express authority from a principal in order to act. Which of the following would be included in that?

Capacity to contract
Capacity to delegate
Capacity to incur expenses
Capacity to market

A

Capacity to contract
Capacity to delegate
Capacity to incur expenses

48
Q

In which of the following situations would a real estate professional become liable to a customer?

A) When the real estate professional recommends 3 mortgage brokers, allowing the customer to choose the right fit for them

B) When the real estate professional fails to disclose their role in the real estate transaction

C) When the real estate professional makes an error while filling out a form

D) When the real estate professional gives wrong directions to the property to his buyer clients

A

B) When the real estate professional fails to disclose their role in the real estate transaction

49
Q

John, a real estate professional representing an investor approaches Patti, the owner of a house listed for sale by the owner. During the conversation, John finds out the details of the offer that Patti has received on the property. He conveys that information to his client who asks John to let Patti know that he’ll make a better offer. Based on this information, Patti declines the other offer. Shortly afterwards, John’s client finds a more suitable property and does not make an offer on Patti’s property. Which general obligation has John failed to meet in this scenario?

A) No authority
B) Causing a tort
C) Act in person
D) Failure to disclose

A

D) Failure to disclose

50
Q

Dwayne is a real estate professional representing the landlord in managing his apartment building. Dwayne shows the property to a prospective tenant who complains about the stove in the apartment. Dwayne knows the stove is old and should be replaced. He is certain that the landlord would approve of replacing the stove. Therefore, he drafts a rental agreement with the prospective tenant and signs it on the landlord’s behalf. Just before the move-in-date, the landlord refuses to replace the stove. How has Dwayne incurred a liability in this scenario?

A) Acting without authority
B) Causing a tort
C) Acting in person
D) Failure to disclose

A

A) Acting without authority

51
Q

Cara, is a real estate professional with High End Brokerage. She is holding an open house for her client, Michael. Tom and Mary come to look at the house. During the conversation, they tell Cara that they have been pre-approved for a mortgage for $565,000 but they would like to write an offer on the property for $545,000. Cara drafts the offer for them and takes it to the seller. She conveys the information to the seller who counters the offer at $565,000. How has Cara incurred a liability in this scenario?

A) Acting without authority
B) Causing a tort
C) Acting in person
D) Failure to disclose

A

D) Failure to disclose

52
Q

Brandon is a real estate professional helping his client, Jim, buy a property. After one of the showings, Brandon goes to turn off the lights and accidently turns off the heat in the house. As a result, one of the pipes in the house freezes and bursts. The seller sues the brokerage and Brandon for the loss. How has Dwayne incurred a liability in this scenario?

A) Acting without authority
B) Causing a tort
C) Acting in person
D) Failure to disclose

A

B) Causing a tort

53
Q

By having the potential buyer sign a customer status acknowledgement, the real estate professional completed which one of the 5 D’s of Role Clarity and Consistency?

Choose only ONE best answer.

A) Discuss the types of real estate relationships
B) Determine your representative capacity
C) Document your representative capacity
D) Disclose your representative capacity

A

C) Document your representative capacity

54
Q

Mohammed is a real estate professional with Star Real Estate Brokerage, representing his seller client, Jamal. He is contacted by a buyer, who is interested in the seller’s property. The buyer says he’s in town only for a short period of time and needs to buy a property before he leaves. What must Mohammed do in this case?

Choose only ONE best answer.

A) Disclose his representative capacity and have the customer sign a written service agreement

B) Disclose his representative capacity and have the customer sign a written acknowledgement

C) Disclose his representative capacity and have the client sign a written acknowledgement

D) Disclose his representative capacity and have the client sign a written service agreement

A

B) Disclose his representative capacity and have the customer sign a written acknowledgement

55
Q

What must be included in the written disclosures provided by the real estate professionals to the customers?

  1. Whether the real estate professional has entered into a representation relationship with another party to the real estate transaction
  2. The nature of services the real estate professional will provide
  3. Any conflicts of interest that may exist
  4. Any other facts that are likely to influence the person’s decision
A

All of the above

56
Q

The requirement to provide written disclosure to a consumer is not prompted by which of the following actions?

  1. A consumer attending a real estate professional’s open house
  2. A consumer revealing their price range, preferred location and desired property styles
  3. A consumer asking general questions to which factual answers can be provided
  4. A consumer revealing where they would like to purchase a property and why
A

statements 1,2,3

57
Q

Jessica, a real estate professional with Tri State Realty lists a seller’s house for sale. A buyer approaches Jessica and wants to see the property. Jessica shows the house to the buyer and provides factual information about the property. In this example, seller is the __________ and the buyer is the __________?

A) Customer, client
B) Client, customer
C) Third party, principal
D) Customer, principal

A

B) Client, customer

58
Q

Robert, a small business owner hires Ken, a real estate professional with Popular Realty to help him buy a retail storefront. Ken approaches several sellers who are advertising retail properties for sale and sets up showings for Robert. In this example, each seller would be considered a __________ and Robert would be the __________?

A) Customer, client
B) Client, customer
C) Third party, principal
D) Customer, principal

A

A) Customer, client

59
Q

Judy hires Monica, a real estate professional with Broadway Property Management, to manage an apartment building for her. Several prospective tenants approach Monica to view the suites. Monica shows them the available suites and accepts their lease applications. In this scenario, Judy would be considered the __________ and a tenant would be the __________?

A) Customer, client
B) Client, customer
C) Third party, principal
D) Customer, principal

A

B) Client, customer

60
Q

Ben, a real estate professional with Montrose Realty, is representing an investor who wants to purchase a property. Ben notices a property listed for sale by an owner that may meet his client’s requirements. Ben realizes that the seller has significantly undervalued the property and shares this information with his client. Ben provides written disclosures to the seller and gets the customer acknowledgement form signed. He then presents his client’s offer and negotiates on her behalf. The seller decided to accept the offer. A week after taking possession, the client resells the property for significantly more money than she paid for it. Which responsibility has Ben demonstrated in this scenario?

A) Act honestly
B) Exercise care and skill
C) To account
D) Maintain confidentiality

A

The correct answer is ‘B’
Real estate professionals do not owe a duty of fairness to customers or to make sure customers are treated equitably as doing so may not be in their client’s best interest

61
Q

Amira, a real estate professional with Prime Brokerage, is hired by Randy to sell his property. Amira is approached by buyers who, after viewing the property, want to write an offer on the property. Amira provides written disclosures to the buyers and gets them to sign a customer acknowledgement form. Then Amira prepares an offer based on buyers’ instructions, including conditions for property inspection and financing and presents it to Randy. She advocates on Randy’s behalf and helps him sell the house to the buyers at a great price. Which responsibility has Amira demonstrated in this scenario?

A) Act honestly
B) Exercise care and skill
C) To account
D) Maintain confidentiality

A

B) Exercise care and skill

62
Q

Karen has listed a property for sale for her client. She is approached by a buyer who requests information on comparable properties that are also for sale in the area. While gathering the information, Karen selectively removes some of the comparable properties so her client’s property appears more attractive. Which responsibility has Karen failed to demonstrate?

A) Utmost loyalty
B) Not make secret profits
C) Act honestly
D) To account

A

C) Act honestly

63
Q

Which of the following are the elements of representation relationships?

  1. Creation of Law
  2. Written Agreement
  3. Consensual
  4. Controlled by principal
  5. Usually involves fiduciary Duties
  6. Affects Principal’s legal position
A

2 IS NOT ONE OF THEM

THE 5 ELEMENTS OF REPRESENTATION RELATIONSHIP ARE

  1. Creation of Law
  2. Consensual
  3. Controlled by principal
  4. Usually involves fiduciary Duties
  5. Affects Principal’s legal position
64
Q

In general, representation relationships are established as follows:

•By agreement
•By implication
•By ratification
•By estoppel
•By operation of law

T/F?

A

T

65
Q

Representation relationships can be established in which of the following ways?

By implication
By ratification
By estoppel
By operation of law

A

ALL OF THE ABOVE

66
Q

Which element of the representation relationships states that the agent must at all times obey the lawful instructions of the client, regardless of whether the agent agrees with those instructions or not?

A) Creation of Law
B) Consensual
C) Controlled by principal
D) Usually involves fiduciary Duties

A

C) Controlled by principal

67
Q

Which element of the representation relationships states that whether a representation relationship exits or not is determined by the courts and is usually based on the actions taken by the parties?

A) Creation of Law
B) Consensual
C) Controlled by principal
D) Usually involves fiduciary Duties

A

A) Creation of Law

68
Q

Which element of the representation relationships states that representation relationships are formed and exist with the consent of both the principal and agent. Consent can be written, verbal or implied by the conduct of the principal and agent?

A) Creation of Law
B) Consensual
C) Controlled by principal
D) Usually involves fiduciary Duties

A

B) Consensual

69
Q

Which element of the representation relationships states that A principal is legally liable for the actions taken by an agent who is acting on his or her behalf so long as the agent acted within the scope of authority that was granted.

A) Creation of Law
B) Consensual
C) Affects Principles Legal Position
D) Usually involves fiduciary Duties

A

C) Affects Principles Legal Position

70
Q

Which element of the representation relationships states that A fiduciary duty is a legal duty requiring an agent to act at all times in the principal’s best interest

A) Creation of Law
B) Consensual
C) Affects Principles Legal Position
D) Usually involves fiduciary Duties

A

D) Usually involves fiduciary Duties

71
Q

A representation relationship is established by ________ when a principal acts in a way that leads a third party to believe that an agent has been given authority to act on behalf of the principal. However, the agent has not consented to the creation of a representation relationship with the principal.

A) By estoppel
B) By agreement
C) By ratification
D) By implication

A

A) By estoppel

72
Q

A representation relationship is established by ________if a representation relationship is created by implication between a real estate professional and a party to a real estate transaction

A) By estoppel
B) By agreement
C) By ratification
D) By implication

A

D) By implication

73
Q

Sameer is a real estate professional representing his seller client Theo. An unrepresented buyer approaches Sameer and wants to view the property. During the showing, Sameer discloses to the potential buyer that he is representing the seller. The buyer is interested in writing an offer and asks the real estate professional about potential price the seller might accept. Sameer wants to make the sale so he provides his thoughts on the price the seller may accept. How has Sameer created a representation relationship with the buyer?

A) By estoppel
B) By agreement
C) By ratification
D) By implication

A

D) By implication

74
Q

Sameer is a real estate professional representing his seller client Theo. An unrepresented buyer approaches Sameer and wants to view the property. During the showing, Sameer discloses to the potential buyer that he is representing the seller. The buyer is interested in writing an offer and asks the real estate professional about potential price the seller might accept. Sameer wants to make the sale so he provides his thoughts on the price the seller may accept. How has Sameer created a representation relationship with the buyer?

A) By estoppel
B) By agreement
C) By ratification
D) By implication

A

D) By implication

75
Q

A representation relationship is established by __________ when an agent acts without authority or in excess of authority that has been granted. As a result, the principal subsequently agrees to be bound by the unauthorized act.

A) By estoppel
B) By agreement
C) By ratification
D) By implication

A

C) By ratification

76
Q

A representation relationship is established by __________ when an agent takes immediate action to save the property of a principal from imminent danger.

A) By estoppel
B) By operation of law
C) By ratification
D) By implication

A

B) By operation of law

77
Q

Pam is a real estate professional with Mozaic Realty. On her way to a showing, she comes across a parcel of land that would be of interest to a developer. She calls the developer and suggests a sale price for the land to the developer who then drafts an offer to purchase and gives it to Pam. Pam presents the offer to the property owner and gives advice on how to proceed with a counter offer. Although the property owner had no intention to sell the property, he is pleased with the offer and signs it. How has Pam created a representation relationship with the property owner?

A) By estoppel
B) By agreement
C) By ratification
D) By implication

A

C) By ratification

A representation relationship is established by ratification when an agent acts without authority or in excess of authority that has been granted. As a result, the principal subsequently agrees to be bound by the unauthorized act. In this case, Pam has created a representation relationship with the property owner

78
Q

Raina is a real estate professional with Cove Real Estate Brokerage. She receives a call from a potential buyer that a developer she knows has advised them that Raina is acting on his behalf. They would like to write an offer on one of the developer’s properties. Raina does not have a written service agreement with the developer so she declines to accept the offer. How was the representation relationship established in this case?

A) By estoppel
B) By agreement
C) By ratification
D) By implication

A

The correct answer is ‘A’

A representation relationship is established by estoppel when a principal acts in a way that leads a third party to believe that an agent has been given authority to act on behalf of the principal. However, the agent has not consented to the creation of a representation relationship with the principal.

79
Q

Mark, a real estate professional with Clareview Real Estate Brokerage, is helping his clients Peter and Rita purchase a property. At one of the showings, Mark notices that a water pipe has broken in the house and is flooding the basement. He tries calling the seller’s real estate professional but is unable to reach him. As a result, he turns the main water line to the house in order to prevent further damage to the property. How has a representation relationship been established in this scenario?

A) By estoppel
B) By operation of law
C) By ratification
D) By implication

A

B) By operation of law

A representation relationship is established by operation of law when an agent takes immediate action to save the property of a principal from imminent danger. The representation relationship only exists for as long as it takes to resolve the issue.

80
Q

Which of the following are the general obligations owed to clients by real estate professionals?

  1. Exercise care and skill
  2. Utmost loyalty
  3. Perform mandate
  4. Act in person
A

Statments 1,3,4

All the 8 general obligations owed to clients are:
1. Exercise care and skill
2. Act honestly
3. Perform mandate
4. Obey lawful instructions
5. Act in person
6. Disclose information
7. Maintain confidentiality
8. Negotiate favorable terms

81
Q

Which of the following are fiduciary duties owed to clients by real estate professionals?

  1. Act honestly
  2. Utmost loyalty
  3. To account
  4. Not make secret profits
A

Statements 2,3,4

The fiduciary duties owed to clients are:

Utmost loyalty
To account
Not make secret profits
Handle confidential information
Avoid conflicts of interest
Disclose conflicts of interest

82
Q

Samara is an experienced residential real estate professional with True North Realty. She had helped a client, John, purchase a home last year. John calls Samara as he wants to list his small office building for sale. If Samara list the property for sale, which responsibility has she failed to perform?

A) Utmost loyalty
B) Exercise care and skill
C) Not make secret profits
D) Disclose conflicts of interest

A

B) Exercise care and skill

83
Q

THE PARTY THAT WORKS WITH, BUT IS NOT REPRESENTED BY A REAL ESTATE PROFESSIONAL IS CALLED ?

A) CUSTOMER
B) CLIENT
C) NON- REPRESENTATION RELATIONSHIP
D) REPRESENTATION RELATIONSHIP

A

A) CUSTOMER

84
Q

These types of laws are made by the courts?

A) Common Laws
B) Statue Laws
C) Disclosure
D) Privacy Law

A

A) Common Law

85
Q

When are written disclosures needed ?

A

In a timely manor they are needed when real estate professionals are first approached by consumers

when the REP is about to receive confidential information (real estate needs, motivation of financial ability)

86
Q

What must written disclosures provided by real estate professionals to consumers include?

A) Whether the real estate professional has already entered into a representation relationship with another party to the real estate transaction
B) The Services the REP will supply to the consumer
C) Any conflicts of interest that may exist between the consumer and the REP
D) Any Additional facts or info that may influence the consumers decision to proceed with the relationship

A

All of the above

87
Q

TRUE OR FLASE

Real estate professionals must provide consumers with RECAS Consumer relationships guide

A

TRUE - when in practice

88
Q

What do REP have to take into consideration when documentation relationship decisions?

A) Customer Acknowledgment forms
B) Written Service Agreements
C) Acting Consistently
D) Avoiding Unintended Relationships
E) All of the Above

A

E) All of the Above

89
Q

Representation relationships are NOT automatically established though which of the following actions?

A) REP conveying documents / providing general information to consumers
B) REP using certain terms to refer to the consumer (eg. client, customer)
C) Consumers using certain terms to refer to the REP
D) Consumers paying remunerations (eg commissions, fees) to the REP’s brokerage
E) All of the above

A

E) All of the above

90
Q

What are the 5D’s of Role Clarity and Consistency

A) Discuss, Denial, Document, Disclose, Determine
B) Data, Document, Discuss, Disclose, Derail
C) Discuss, Determine, Document, Disclose and DO
D) Do, Determine, document, diligent, and Data

A

C) Discuss, Determine, Document, Disclose and DO

Discuss - the types of real estate relationships
Determine - your representation capacity
Document - your representation capacity
Disclose - Your representative capacity
DO - actions consistent with your representation capacity

91
Q

Which of the below are the BENEFITS of role clarity and consistency

A) Complies with regulatory requirements
B) Enhances image of REP
C) Prevents unintended real estate relationships
D) Clarifies responsibilities owed to consumer and which services are to be provided
E) Reduces disputes

A

All of the above are benefits

92
Q

Parm is a REP and is helping her clients Mark and Vanessa buy a townhouse. Parm explains the home buying process and recommends they include property inspection, financing and condo document review condition in the purchase contract.
The Transaction goes smoothly and the buyers are happy

Which responsibility has Parm fulfilled in this situation?

A) Utmost loyalty
B) Act in person
C) Exercise care and skill
D) Negotiate favorable terms

A

C) Exercise care and skill

93
Q

Jackie is a REP with High End Realty. She represents her client John in the purchase of a property that is behind a gas station. John is concerned that the soil may be contaminated.
Jackie dismisses johns concerns and dose not suggest her include and environmental assessment condition as part of the purchase contract.
A few months after the transaction closes, John discovered that the property is in fact contaminated.
Which responsibility has Tamara failed to preform?

A) Utmost loyalty
B) Act in person
C) Exercise care and skill
D) Negotiate favorable terms

A

C) Exercise care and skill

94
Q

Khalid is a REP with Sterling Commercial Reality. He is helping a mall owner lease out some retail space. They get an offer that includes a broad non competitive clause that would limit the owners ability to lease out other mall space to similar businesses. Khalid brings this to the owners attention and recommends change to the lease terms that would make it more favorable for the owner. Which responsibility has Khalid fulfilled in this case?

A) Utmost loyalty
B) Act in person
C) Exercise care and skill
D) Negotiate favorable terms

A

D) Negotiate favorable terms

95
Q

Which of the following are fundamental principles that the fiduciary duties are based on?

  1. Trust & Confidence
  2. Best Interests
  3. Loyalty
  4. Avoid conflicts of interest
A
  1. Trust & Confidence
  2. Best Interests
  3. Loyalty
96
Q

What are the 6 Fiduciary Duties that REP’s own clients?

  1. Utmost Loyalty
  2. Avoid conflicts or interest
  3. Disclose conflicts of interest
  4. Not make secret profits
  5. Handle confidential info properly
  6. To account
A
  1. Utmost Loyalty
  2. Avoid conflicts or interest
  3. Disclose conflicts of interest
  4. Not make secret profits
  5. Handle confidential info properly
  6. To account
97
Q

According to the Rules, which of the following best describes a conflict of interest?

A) When the interests of one person take precedence over the interests of another person

B) When a person shares information with another person so that each person has the same information

C) When a person has information that relates to another person, but is unable to share the information with that person

D) When there is a real or apparent incompatibility between the interests of an industry member and those of a client

A

D) When there is a real or apparent incompatibility between the interests of an industry member and those of a client

98
Q

Which of the following describes clients with opposing interests in the same property?

A) Two buyers
B) Two sellers
C) A buyer and a seller
D) A client and a customer

A

C) A buyer and a seller

99
Q

Which of the following describes clients with competing interests in the same property?

A) Two buyers
B) A buyer and a seller
C) A client and customer
D) A current client and a former client

A

A) Two buyers

100
Q

Which of the following are examples of a brokerage’s interests being at odds with the interests of a client?

Real estate professional is part of a personal trade
Real estate professional represents business associate
Real estate professional represents family member
Referral is made to family member or business associate

A) Statements I, II and III
B) Statements II, III and IV
C) Statements I, III and IV
D) All statements apply

A

D) All statements apply

101
Q

Why is it a conflict of interest for a real estate professional to be involved in a personal trade with a client of the brokerage?

A) The real estate professional is a party in the real estate transaction
B) The real estate professional is not able to advocate for the interests of the client
C) The real estate professional has a vested interest in the outcome of the transaction
D) All statements are why personal trades give rise to a conflict of interest

A

D) All statements are why personal trades give rise to a conflict of interest

102
Q

Which of the following describes the common law presumption that prevents brokerages from meeting their agency responsibilities when representing multiple clients with competing or opposing interests in the same transaction?

A) Implied Knowledge.
B) Distributed Knowledge
C) Attributed Knowledge
D) Generalized Knowledge

A

C) Attributed Knowledge

103
Q

Which of the following clients to a trade in real estate have opposing interests?

Current clients in the same transaction
Multiple buyers competing for the same property
A former and current client in the same transaction
Multiple sellers competing for the same buyers

A) Statements I and II
B) Statements II and III
C) Statements I and III
D) Statements III and IV

A

C) Statements I and III

104
Q

Angie, a real estate professional with River Realty, is representing Art in the purchase of a residence. Angie is contacted by Art to get more information about a residence listed for sale with River Realty. After viewing the property, Art decides that he wants to purchase it. Angie has a long-standing business relationship with Art, as she invested in the local coffee shop he owns and operates.

This scenario involves a conflict of interest that is the result of which of the following situations?

A) Current clients of the brokerage have competing interests in the same property
B) Current clients of the brokerage have opposing interests in the same trade
C) The interests of the brokerage are at odds with the interests of the client
D) A former and current client of the brokerage have opposing interests in the same trade

A

C) The interests of the brokerage are at odds with the interests of the client

105
Q

Edna, a real estate professional with Super Realty Ltd., is representing Owen who is a buyer. In seeking suitable properties for Owen, Edna locates a house that was for sale 6 months earlier with Super Realty. However, the property never sold and the written service agreement with Super Realty Ltd. has expired. Edna contacts the owner who agrees to let her show the property to Owen. After the showing, Owen asks Edna to write an offer to purchase on the property.

This scenario involves a conflict of interest that is the result of which of the following situations?

A) The interests of the brokerage are at odds with the interests of the client
B) Current clients of the brokerage have competing interests in the same property
C) Current clients of the brokerage have opposing interests in the same trade
D) A former and current client of the brokerage have opposing interests in the same trade

A

D) A former and current client of the brokerage have opposing interests in the same trade

106
Q

Which of the following describes a lawful revocation?

A) It occurs when either the principal or agent terminates the representation relationship even though both parties have fulfilled their responsibilities

B) It occurs when either the principal or agent fails to fulfil their responsibilities to the other party who terminates the representation relationship as a result

C) It occurs when either the principal or agent provide the other party with written notice that they have decided to terminate the representation relationship

D) It occurs when either the principal or agent terminates the representation relationship because they are no longer authorized by RECA to trade in real estate

A

B) It occurs when either the principal or agent fails to fulfil their responsibilities to the other party who terminates the representation relationship as a result

RECA (12 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions