RECA RESIDENTIAL EXAM UNIT 1-9 1000+ QUESTIONS
& ANSWERS VERIFIED WITH DETAILED ANSWERS
2024 UPDATED
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
Downloaded at Knoowy - Upload your own study documents and earn money
,RECA RESIDENTIAL EXAM UNIT 1-9 1000+ QUESTIONS
& ANSWERS VERIFIED WITH DETAILED ANSWERS
2024 UPDATED
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
Downloaded at Knoowy - Upload your own study documents and earn money
,RECA RESIDENTIAL EXAM UNIT 1-9 1000+ QUESTIONS
& ANSWERS VERIFIED WITH DETAILED ANSWERS
2024 UPDATED
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
Downloaded at Knoowy - Upload your own study documents and earn money
, RECA RESIDENTIAL EXAM UNIT 1-9 1000+ QUESTIONS
& ANSWERS VERIFIED WITH DETAILED ANSWERS
2024 UPDATED
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?
Downloaded at Knoowy - Upload your own study documents and earn money
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller erickarimi. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $36.41. You're not tied to anything after your purchase.
