RECA RESIDENTIAL EXAM UNITS 1-9|1763 QUESTIONS & ANSWERS 100% CORRECT|COMPLETE SOLUTION GUIDE| LATEST 2024

RECA RESIDENTIAL EXAM UNITS 1-9|1763 QUESTIONS & ANSWERS 100% CORRECT|COMPLETE SOLUTION GUIDE| LATEST 2024
RECA RESIDENTIAL EXAM UNITS 1-9|
RECA RESIDENTIAL TEST BANK| 1763
QUESTIONS &ANSWERS 100%
CORRECT|COMPLETE SOLUTION
GUIDE| LATEST 2024
3 fundamental principles of fiduciary duty. AKA the 3 principles that give rise
to fiduciary duties in a representation relationship:
Trust and Confidence, Best Interests, Loyalty
8 General Obligations of REPs
Exercise Care and Skill, Act Honestly, Negotiate Favourable terms, Maintain
Confidentiality, Disclose Information, Act in Person, Obey Lawful Instructions,
Perform Mandate
6 Points of Fiduciary Duties
Provide Utmost Loyalty, Not make secret profits, Handle Confident Information
Properly, To Account, Avoid conflicts of interest, Disclose conflicts of interest.
"To Account" meaning
Real estate professionals must account for all money and/or property belonging to
the client. This duty compels a real estate professional to safeguard all money,
documents, property, and information entrusted to them that relate to the client's
transaction.
"arm's length transaction" meaning
In real estate, an arm's length transaction is when the buyer and seller each act in
their own self-interest to try to get the best deal they can.
4 common examples of deals that are not arm's length transactions
Sales between friends or family members
Sales between an employer and his or her employees
Sales between a parent company and one of its subsidiaries
Sales between a trust and its beneficiaries
2 options if REP cannot provide competent service to a client
Be Supervised, Refer
To determine if a REP has met the standard of care in a given situation, an
objective review of all facts is performed. 3 measures to determine if that has
been met.
Professional Standards, Professional Norms and Practices, Expert Testimony
"Expert Testimony" Meaning
Other real estate professionals, or experts, may provide information as to the
expectations of a reasonable and prudent real estate professional and how they
would have conducted themselves in similar circumstances.
9 points in "Meeting the Standard of Care"
1. Know the Type of Consumer Relationship 2. Act consistent with the relationship
chosen 3. Know the Brokerage Service 4. Know the brokerage Policies and
procedures 5. Be Aware of Market and Practical Issues 6. Make Reasonable
Efforts to Confirm information 7. Exercise Due care when preparing documents 8.
Seek Advice when appropriate 9. Be a Lifelong learner
When is written disclosure needed?
Whenever a REP receives or is about to receive confidential information; including
the consumer's real estate needs, motivation, or financial ability.
4 things that must be included in written disclosure
1. Whether the REP has entered into a representation relationship with another
party to the real estate transaction 2. The service the REP will provide the
consumer 3. Any conflicts of interest that may exist between the consumer and the
REP 4. Any additional facts or information that may influence the consumer's
decision to proceed with the real estate relationship.
Which guide must REPs practicing residential real estate must REPs provide to
consumers for relationship disclosures (the guide includes all information REPs
must include in written disclosures under the Rules)
RECA's Consumer Relationship Guide
For needed when non-representation relationship is selected by consumer (then
becoming a customer)
Customer acknowledgement form
Form needed when representation relationship is chosen by consumer (then
becoming a client)
Written Service Agreement
Does RECA's consumer relationships guide, customer Acknowledgement forms
and written service agreements contain mandatory content? Can it be changed?
Yes. Although these documents may be changed at the request of a consumer or
tailored to the needs of a brokerage (eg. logo added, broker information added),
content, meaning and intent must not be altered.
Representation relationships are NOT established by the following 4 actions
1. REP conveying documents or providing general information to consumers 2.
REP using certain terms to refer to consumers (eg client customer) 3. Consumers
using certain terms to refer to REP (eg. Real estate agent, lease agent, buyers
agent) 4.Consumers paying remuneration (ie commission, fees) to the REP's
brokerage
5Ds of Role Clarity and Consistency (5 words)
1. Discuss 2. Determine 3. Document 4. Disclose 5. Do
Longer explanations of the 5Ds of Role Clarity and Consistency (sentences)
1. Discuss the Real estate relationship 2. Determine your representative capacity 3.
Document your representative capacity in writing 4. Disclose your representative
capacity (ie. seller's agent, buyer's agent, landlord's agent, or tenant's agent) 5. Do
actions with your representative capacity consistent with your established
relationship
6 Benefits of Role Clarity and Consistency
1. Meets Regulatory Requirements 2. Enhances professionalism 3. Prevents
Unintended relationships 4. Clarifies responsibilities to consumers 5. Clarifies
services to consumers 6. Reduces disputes
True or False - Making referrals is a fiduciary duty that REPs owe to clients
False
True or False - the standard of care for a REP in a particular set of circumstances is
determined subjectively
False
"subjectively" meaning
In a way that is based on personal feelings, tastes, or opinions.
"Objectively" meaning
in a way that is not influenced by personal feelings or opinions.
Defined in the Rules, what does confidential information include (3 things in
specific)
Any information concerning the client including the client's financial or personal
situation, the client's real estate, and transactions involving the client.
What does commercial activity refer to?
Any transaction, act, or conduct involving the exchange of goods and/or services.
Is Buying/selling/leasing considered commercial activity?
Yes, the purchase, sale, or leasing of real estate is considered a commercial activity
In Alberta the protection of individuals' personal information during real estate
transactions is regulated by which privacy legislation (x2)
PIPEDA (The Personal Information Protection and Electronic Document Act) and
PIPA (The Personal Information Protection Act)
Is PIPEDA a provincial or a Federal legislation?
Federal
Does PIPEDA legislation apply to Alberta?
Yes and No, since Alberta has PIPA (which is substantially similar to PIPEDA so
accepted), it does not all to all organizations involved in commercial activities.
Which 2 areas does PIPEDA legislation continue to apply to in Alberta (and
provinces that have set up legislation like PIPA)
PIPEDA continues to apply to 1. Federally regulated businesses (such as banks,
airlines, and telecommunication companies. 2. Organizations conducting business
(involving person information) that crosses provincial or national borders
10 Privacy Principles in Practice
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
3 types of consent (recognized by Privacy legislation)
Express, implied or opt-out
Can Real estate assistants hired by the brokerage do activities involving the public?
Yes (but not tasks that would require being authorized to trade in real estate,
mainly to help with administrative functions or general office duties supporting the
day-to-day activities. In some instances, involve the public
If a REP hires an assistant (first must have broker's consent) can the tasks involve
the public?
No, they cannot involve the public. Otherwise they need to be employed by the
brokerage
3 Things that need to be implemented if using a virtual assistant in order to protect
client information
1. Confirm the virtual assistant privacy policies and procedures are comparable to
that of the brokerage 2. Notify clients whose personal information is being
collected or transferred when notification was not included in the real estate
relationship form. Notification should be in writing and documents for brokerage
record keeping. 3. Advise clients whose personal information is collected or
transferred, how the real estate brokerage's privacy policies and procedures may be
obtained in writing. Also let the client know who can answer questions about the
collection, use, and disclosure of their personal information when handled by the
virtual assistant.
How can a REP possibly use a virtual assistant?
The REP, along with their client can consent to modify the relationship agreement
regarding the collection, use , and disclosure of their personal information to
indicate that 'a virtual assistant employed by the real estate professional has that
same consent'.
What does CASL stand for?
Canada's Anti-Spam Legislation
What are CEMs?
commercial electronic messages. Any message in electronic form (eg emails, text
messages, instant messages) sent to an electronic address, (eg. email address,
instant message accounts, cell phone accounts, social media accounts) and
encourages participation in a commercial activity, including, but not limited to,
offering, advertising, or promoting a product, service, or person.
"Phishing" meaning
Phishing involves impersonating a trusted person, organization, or website to steal
an individual's personal information, generally for the purpose of identity theft.
4 points of Expressed consent
1. written consent includes both paper and electronic forms 2. Verbal consent can
be documented by an independent third party or by an unedited audio recording of
the recipient giving consent 3. expressed consent cannot be hidden in an
agreement, attached to a product or service, or be a condition of sale 4. Express
consent does not expire unless it is withdrawn by the recipient
3 situations Implied consent is obtained
1. Existing Business Relationship 2. Existing Non-business Relationship 3.
Conspicuous Publication or Disclosure of Contact Information
Explain "Existing Business Relationship" as it relates to Implied Consent being
obtained for CEMs
The recipient and the sender have worked together in the 2 years before the CEM
is sent or when the recipient has made an inquiry about the real estate
professional's business services with the previous 6 months
Explain "Existing Non-business Relationship" as it relates to Implied Consent
being obtained for CEMs
The recipient has, within the previous 2 years made a donation or gift, or
volunteered for a registered charity, or been a member of a not-for-profit
organization, such as a club or committee
Explain "Conspicuous Publication or Disclosure of contact information" as it
relates to Implied Consent being obtained for CEMs
The recipient clearly publishes or discloses their electronic contact information
without restrictions (eg opting out of receiving any unsolicited CEMs) and the
message the recipient receives has to do with their activity or functions in a
business capacity
Is Implied consent time-limited? If so, for how long?
Implied consent is generally time-limited which means that it typically last for a
period of 2 years after the event that starts the relationship (eg a client enters into a
written service agreement with a real estate professional)
4 requirements REP must ensure so that CEMs are CASL compliant
1. The recipient's verbal, written, or implied consent is received and retained 2.
Identification information is included in the CEM. This refers to the stated purpose
for requesting consent, the REP's name and contact information, the brokerage
name and address, phone number, email, and web address 3. Provide a free
unsubscribe mechanism in each CEM that allows recipients to withdraw their
consent from receiving future communications. The unsubscribe mechanism must
be clearly set out and it must occur within 10 days of the request 4. Ensure the
contents of the CEM are not false or misleading