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RECA Residential Unit 1 with complete verified solutions 2024.
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RECA Residential Unit 1 with complete verified solutions 2024.
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RECA Residential Unit 1 withcomplete verified solutions
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
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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)
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