RECA RESIDENTIAL UNIT 1 | WITH COMPLETE SOLUTIONS 100% PASS.
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Course
RECA
Institution
RECA
RECA RESIDENTIAL UNIT 1 | WITH COMPLETE SOLUTIONS 100% PASS.
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...
RECA RESIDENTIAL UNIT 1 | WITH COMPLETE
SOLUTIONS 100% PASS.
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
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