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RECA Residential Unit 1 Questions And Answers With Verified Solutions 100% Correct!!!
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RECA Residential Unit 1 Questions And Answers With Verified Solutions 100% Correct!!!
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RECA Residential Unit 1 Questions And Answers With Verified Solutions 100% Correct!!! 3 fundamental principles of fiduciary duty. AKA the 3 principles that give rise to fiduciary duties in a representation relationship: - ANSWER✔✔ Trust and Confidence, Best Interests, Loyalty 8 General Obligations of REPs - ANSWER✔✔ Exercise Care and Skill, Act Honestly, Negotiate Favourable terms, Maintain Confidentiality, Disclose Infor mation, Act in Person, Obey Lawful Instructions, Perform Mandate 6 Points of Fiduciary Duties - ANSWER✔✔ Provide Utmost Loyalty, Not make secret profits, Handle Confident Information Properly, To Account, Avoid conflicts of interest, Disclose conflicts of interest. "To Account" meaning - ANSWER✔✔ Real estate profession als 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 tran saction" meaning - ANSWER✔✔ 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 - ANSWER✔✔ 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 - ANSWER✔✔ 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. - ANSWER✔✔ Professional Standards, Professional Norms and Practices, Expert Testimony "Expert Testimony" Meaning - ANSWER✔✔ 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" - ANSWER✔✔ 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 Awar e 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? - ANSWER✔✔ 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 - ANSWER✔✔ 1. Whether the REP has entered into a representation relationsh ip 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 deci sion 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) - ANSWER✔✔ RECA's Consumer Relationship Guide For needed when non -representation relationship is selected by consumer (then becoming a customer) - ANSWER✔✔ Customer acknowledgement form Form needed when representation relationship is chosen by con sumer (then becoming a client) - ANSWER✔✔ Written Service Agreement Does RECA's consumer relationships guide, customer Acknowledgement forms and written service agreements contain mandatory content? Can it be changed? - ANSWER✔✔ Yes. Although these documents may be changed at the request of a consumer or tailored to the ne eds 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 - ANSWER✔✔ 1. REP conveying documents or providing general informat ion 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 br okerageThe benefits of buying summaries with Stuvia:
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