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RECA Fundamentals > Working With Other Professionals > Flashcards

Working With Other Professionals Flashcards

1
Q

Common conditions written into a buyers offer?

A

Financing

Property Inspection

Condominium document review

Sale of buyer’s home

Review of permits or building applications
Water well and septic inspections

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2
Q

Must licensee’s recommend three service providers to a client?

A

No.

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3
Q

Steps a licensee can take to reduce liability in case a referral’s service falls short of expectations?

A

Ensure they’re licensed in their industry

Know about their qualifications and competence (work with them)

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4
Q

How to approach referral fees?

A

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.

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5
Q

What factors determine whether or not someone needs a real estate license in Alberta?

A

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

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6
Q

If a consumer, institution or corporation is selling real estate owned by them, do they require a license?

A

No

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7
Q

Do appraisers need a license if they are conducting appraisal on behalf of the corporation they’re employed by?

A

No, they need a license if they’re hired by someone other than their employer.

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8
Q

Maximum fine for a individual carrying out activities for which a license is required?

A

The registrar can impose a maximum fine of $25,000.

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9
Q

Three obligations of real estate professionals acting in an agency capacity when providing services to the public?

A

General Obligations

Fiduciary Obligations

Statutory Obligation

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10
Q

Legal obligations

A

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

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11
Q

Is digitally altering a room to add a window on a wall socket acceptanble?

A

No, physical features that are apart of the home should not be added or removed.

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12
Q

Harmonized Rules: Exterior photos of property to be sold

A

There should at least one photograph or art’s rendering of the exterior of the property.

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13
Q

Must the exterior photo be the first photo on the listing’s MLS page?

A

No.

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14
Q

Can MLS photographs include any type of corporate advertising logos/symbols of the photographer?

A

No

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15
Q

Can photographers use MLS listing photos they have taken for any other purpose?

A

Yes, they have perpetual rights to the photos as they own them, unless otherwise specified in a written contract.

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16
Q

Common survey for a real estate transaction?

A

Real Property Report (RPR)

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17
Q

What does a RPR include?

A

Physical dimensions of the property

Location of buildings

Improvements

Rights of way

encroachments

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18
Q

Current RPR

A

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.

19
Q

Existing RPR

A

Last completed RPR, but does not show accurate state of land or improvements.

20
Q

Is an RPR required for the sale of real estate in Alberta?

A

Though commonly used, it is not a requirement.

21
Q

Do Alberta Real Estate Association (AREA) include RPR’s as a requirement?

A

Yes

22
Q

Certificate of Non-Conformance

A

The structures and improvements on the property do not comply with current standards but are allowed to remain in place.

23
Q

What does title insurance protect against?

A

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

24
Q

Limitations of title insurance?

A

Only protects against unknown defects

25
Q

Conventional mortgage

A

20% of the purchase price placed as a down payment

26
Q

High-ratio mortgage

A

Less than 20% of the purchase price as a down payment

Often will require mortgagor to pay additional premiums for mortgage insurance.

27
Q

Condominium document review includes

A

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

28
Q

Is utilize a lawyer required in Alberta when closing a real estate transaction?

A

No

29
Q

Can all lawyers practice in real estate?

A

Yes, as long as they are a member of good standing of the Alberta Law Society

30
Q

Test: Best practices for referrals

A

Provide more than one name

Recommend someone you have worked with in the past

Ensure they’re licensed/qualified in their field of work

31
Q

Test: Is a licensee required to disclose when they might earn a referral fee for a recommendation

A

Yes

32
Q

Test: When should you refer your client to a outside professional?

A

When you are not able to provide the expertise they require

When you’re not licensed in the field the client needs assistance with

33
Q

Test: Requirements for real estate images in Alberta

A

One exterior photo must be included

No advertising or self-promotion

34
Q

Test: Who do photo rights belong to?

A

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.

35
Q

Test: What is purpose of a RPR?

A

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

36
Q

Test: Title Insurance

A

Insurance policy that protects the buyer from unforeseen issues that may arise in the future on the property

37
Q

Test: Before making a referral to a company, what two things should you do?

A

Ensure their skill and competence

Meet/interview them if you have not used them before

38
Q

Test: The M in NUMERAL stands for?

A

Money

39
Q

Test: What is a holdback?

A

A certain amount of money will not be released until a specific repair is completed by the seller

40
Q

Test: Examples of activities requiring a mortgage license?

A

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

41
Q

Test: Home inspection businesses in Alberta must have?

A

A license from the provincial government, under the consumer protection act.

A bond or other form of security

Errors and omissions insurance

42
Q

Can buyers conduct a home inspection with having a license?

A

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.

43
Q

Four things a lawyer will do at the closing of a deal?

A

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

44
Q

What are acceptable disbursements?

A

Title search fees

Land titles registration fees

Office expenses

Courier fees

RECA Fundamentals (27 decks)

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