Working With Other Professionals Flashcards
Common conditions written into a buyers offer?
Financing
Property Inspection
Condominium document review
Sale of buyer’s home
Review of permits or building applications
Water well and septic inspections
Must licensee’s recommend three service providers to a client?
No.
Steps a licensee can take to reduce liability in case a referral’s service falls short of expectations?
Ensure they’re licensed in their industry
Know about their qualifications and competence (work with them)
How to approach referral fees?
You must disclose to your client that you will receive in compensation.
If you are sharing the clients contact information, you must receive their consent in writing, and keep the record on file.
What factors determine whether or not someone needs a real estate license in Alberta?
If they are providing a service for someone else relating to real estate, mortgage, property management
Whether the person is being compensated for undertaking these activities or proving these services
If a consumer, institution or corporation is selling real estate owned by them, do they require a license?
No
Do appraisers need a license if they are conducting appraisal on behalf of the corporation they’re employed by?
No, they need a license if they’re hired by someone other than their employer.
Maximum fine for a individual carrying out activities for which a license is required?
The registrar can impose a maximum fine of $25,000.
Three obligations of real estate professionals acting in an agency capacity when providing services to the public?
General Obligations
Fiduciary Obligations
Statutory Obligation
Legal obligations
Performing the mandate of the agreement
Acting honestly
Obeying the client’s instructions
Maintaining the client’s instructions
Maintaining confidentiality
Exercising care and skill
Disclosing relevant information
Is digitally altering a room to add a window on a wall socket acceptanble?
No, physical features that are apart of the home should not be added or removed.
Harmonized Rules: Exterior photos of property to be sold
There should at least one photograph or art’s rendering of the exterior of the property.
Must the exterior photo be the first photo on the listing’s MLS page?
No.
Can MLS photographs include any type of corporate advertising logos/symbols of the photographer?
No
Can photographers use MLS listing photos they have taken for any other purpose?
Yes, they have perpetual rights to the photos as they own them, unless otherwise specified in a written contract.
Common survey for a real estate transaction?
Real Property Report (RPR)
What does a RPR include?
Physical dimensions of the property
Location of buildings
Improvements
Rights of way
encroachments
Current RPR
Shows everything on a property as it currently exists. Even if it is 10 years old, as long as no further changes were made to the property, it is current.
Existing RPR
Last completed RPR, but does not show accurate state of land or improvements.
Is an RPR required for the sale of real estate in Alberta?
Though commonly used, it is not a requirement.
Do Alberta Real Estate Association (AREA) include RPR’s as a requirement?
Yes
Certificate of Non-Conformance
The structures and improvements on the property do not comply with current standards but are allowed to remain in place.
What does title insurance protect against?
Fraudulent activity against the property title
Mortgage fraud
Issues not included in an RPR such as:
Unregistered utility easements
Builders liens
non-Land titles matters like deficient corporate status
Limitations of title insurance?
Only protects against unknown defects
Conventional mortgage
20% of the purchase price placed as a down payment
High-ratio mortgage
Less than 20% of the purchase price as a down payment
Often will require mortgagor to pay additional premiums for mortgage insurance.
Condominium document review includes
Bylaws of the condominium corporation
Meeting minutes of the board of directors
Financial statements
Annual budgets
Reserve fund study and plan for future capital expenditures
Is utilize a lawyer required in Alberta when closing a real estate transaction?
No
Can all lawyers practice in real estate?
Yes, as long as they are a member of good standing of the Alberta Law Society
Test: Best practices for referrals
Provide more than one name
Recommend someone you have worked with in the past
Ensure they’re licensed/qualified in their field of work
Test: Is a licensee required to disclose when they might earn a referral fee for a recommendation
Yes
Test: When should you refer your client to a outside professional?
When you are not able to provide the expertise they require
When you’re not licensed in the field the client needs assistance with
Test: Requirements for real estate images in Alberta
One exterior photo must be included
No advertising or self-promotion
Test: Who do photo rights belong to?
In absence of a written agreement, they belong to the photographer, who has perpetual usage rights.
A real estate professional can have rights if a written agreement is in place for them to have rights.
Test: What is purpose of a RPR?
To protect the buyer and seller by ensuring that all parties have up to date information on the property and the legality and conformity of it’s structures
Test: Title Insurance
Insurance policy that protects the buyer from unforeseen issues that may arise in the future on the property
Test: Before making a referral to a company, what two things should you do?
Ensure their skill and competence
Meet/interview them if you have not used them before
Test: The M in NUMERAL stands for?
Money
Test: What is a holdback?
A certain amount of money will not be released until a specific repair is completed by the seller
Test: Examples of activities requiring a mortgage license?
Soliciting money from lenders secured by a mortgage in exchange for a commission
Seeking mortgage funds for a home buyer for a flat fee
Offering a client advice on mortgage terms and rates
Acting as an intermediary between a borrower and a lender
Test: Home inspection businesses in Alberta must have?
A license from the provincial government, under the consumer protection act.
A bond or other form of security
Errors and omissions insurance
Can buyers conduct a home inspection with having a license?
Yes, you must make note of it in the contract.
Also, anyone conducting the inspection on behalf of the buyer may not earn a fee unless they’re licensed.
Four things a lawyer will do at the closing of a deal?
Meeting with the clients to sign closing documents
Negotiating amendments to trust conditions with the other lawyer
Ensuring good title to the home
Resolving non-compliant RPRs with the municipality
What are acceptable disbursements?
Title search fees
Land titles registration fees
Office expenses
Courier fees
