RECA FUNDAMENTALS EXAM | QUESTIONS
AND ANSWERS | 2024|
Which of the following is NOT a RECA educational resource for industry professionals?
- Spatial Information System (Spin 2)
Who is responsible for producing the "Real Property Report"? - Alberta Land Surveyor
Benefits of RECAS trust assurance and practice review program - - effective record
keeping and administrative procedures
- education and advice in relation to brokerage trust accounting
- identifies and resolves potential problems regarding brokerage trust accounting
requirements
Responsibilities of RECA - - Handling professional conduct review
- establishing industry standards of practice
- issuing authorization to trade in real estate
Four factors of production - land, labor, capital, entrepreneurship
RECA provides the following annual reports - - financial reports
- industry statistics
- reports for the previous year
Who has the power to amend the Rules of the RE Act? - Council (not the Provincial
Legislature, their job is to amend the RE Act itself - two very different things)
Who has the power to suspend / revoke a license? - The Executive Director
- determines the length of suspension
- serves the decision on the industry professional
- will consider the evidence when making the decision
What's included in written service agreements? - - the services to be provided by the
brokerage
- the responsibilities of each party to the agreement (i.e. remuneration from client to
brokerage)
- the names of the parties to the agreement
Failure to immediately notify Executive Director of changes to information provided in
support of license results in: - - Exec. Director may refer the matter for a professional
conduct review
- Exec. Director may suspend industry professionals license
- Exec. director may cancel the industry professionals license
,Length of time a license is valid for if NOT registered w a brokerage - 36 months
Level of Disclosure: Other party represented by another brokerage - Level 1
Level of Disclosure: Other party not represented - Level 2
Level of Disclosure: Other party represented by same brokerage - Level 3
Inducement vs incentives - - Inducement is client specific
- Incentive is offered by the brokerage to any potential client
Records must be: - - kept in Alberta
- maintained in electronic form
- kept by brokerage for 3 years
- accessible to RECA for inspection
- they can be held in multiple locations, provided they're all in Alberta
Personal Ethics - Morals - held by individual
Ethics - Standard of Conduct (values/beliefs that guide actions)
Professional Standards - Rules and Regulations
Real Estate Insurance Exchange (REIX) - - provides financial protection
- compensates consumers up to $35,000
- mandatory errors & omissions insurance + negligence
- excludes injuries or death, transfers of title, commission/fees
- $3,500 is the first deductible
- $7,000 if second claim.
- RECA collects premiums with licensing fees
Tort Law - Compensation for civil wrongs that result in harm
- Negligent Tort
- carelessness, failure to exercise reasonable care
- Intentional Tort
- assault, fraud, theft, defamation
- strict liability Tort
- the act itself, producting defective products, using hazardous materials
Ethical Decision Making - 1. Recognize
2. Analyze
3. Test
3A. Seek assistance if needed
4. Implement
Duty based approach to ethical decision making - - individuals intentions or motives
- belief in universal moral system of ethical reasoning
, - individuals should do the right thing because its the right thing to do
Benefits of REIX - - enhances the image of the profession
- has the potential to save on insurance costs
- The profession is active in managing the program and its risks
Errors nand nOmissions nInsurance n- n nreal nestate nequivalent nof nmalpractice ncoverage
Comprehensive nGeneral nLiability nInsurance n- n n- nbroad ncoverage nfor nclaims nagainst
ninjury/damage
- ncivil nliability n(a nfall)
- nany ndamages nor ninjuries
- nlegal ndefense ncosts
- ndoes nnot ncover nissues nrelated nto nreal nestate ntransactions
Voluntary nBroker nResolution nProcess n(VBRP) n- n n- nenables nbroker nto ntake nthe nlead nin
nresolving ncomplaints nand ndisputes
- nprior nto nRECA n+ nFormal ncourts
- nbrokers nconfer nwith nREIX nbefore nproceeding
Benefits nof nVoluntary nBroker nResolution nProcess n- n n- navoids ntime nand nintrusion
ninvolved nwith nRECA ninvestigation
- nidentifies ndeficient nbrokerage npractices nthat nneed nimprovement
- nallows nparticipation nin nthe nprocess nto nachieve nacceptable nresolution
- nopportunity nto nmend nrelationship nwith nconsumer
Privacy nLaw n- n n- nBrokerages nmust ndesignate na nprivacy nofficer nto nbe naccountable nfor
ncompliance
- nmust nbe nconsistent nwith nthe napplicable nprivacy nlegislation
Three ncomponents nof nbroker nleadership n- n nAuthority, nresponsibility, nand naccountability
Financial nTransactions nand nReports nAnalysis nCenter nof nCanada n(FINTRAC) n- n n-
nresponsible nfor ncollection, nanalysis nand ndisclosure nof ninformation
- nidentifies nlists nof ngroups nunder ntheir nwatch
- nbrokers nmust nreport nsuspicious ntransactions
Safeguards nto nprotect npersonal ninformation n- n nAdministrative, nTechnological, nPhysical
Confidential ninformation n- n nincludes nboth npersonal nand nbusiness ninformation
- nnot nreadily navailable ninfo, nmay nhave nvalue
What nis nexpress nconsent? n- n nConsent ngiven nverbally nor nin nwriting n(Think nof nyour
nrelationship nwith nyour nlawyer)
AND ANSWERS | 2024|
Which of the following is NOT a RECA educational resource for industry professionals?
- Spatial Information System (Spin 2)
Who is responsible for producing the "Real Property Report"? - Alberta Land Surveyor
Benefits of RECAS trust assurance and practice review program - - effective record
keeping and administrative procedures
- education and advice in relation to brokerage trust accounting
- identifies and resolves potential problems regarding brokerage trust accounting
requirements
Responsibilities of RECA - - Handling professional conduct review
- establishing industry standards of practice
- issuing authorization to trade in real estate
Four factors of production - land, labor, capital, entrepreneurship
RECA provides the following annual reports - - financial reports
- industry statistics
- reports for the previous year
Who has the power to amend the Rules of the RE Act? - Council (not the Provincial
Legislature, their job is to amend the RE Act itself - two very different things)
Who has the power to suspend / revoke a license? - The Executive Director
- determines the length of suspension
- serves the decision on the industry professional
- will consider the evidence when making the decision
What's included in written service agreements? - - the services to be provided by the
brokerage
- the responsibilities of each party to the agreement (i.e. remuneration from client to
brokerage)
- the names of the parties to the agreement
Failure to immediately notify Executive Director of changes to information provided in
support of license results in: - - Exec. Director may refer the matter for a professional
conduct review
- Exec. Director may suspend industry professionals license
- Exec. director may cancel the industry professionals license
,Length of time a license is valid for if NOT registered w a brokerage - 36 months
Level of Disclosure: Other party represented by another brokerage - Level 1
Level of Disclosure: Other party not represented - Level 2
Level of Disclosure: Other party represented by same brokerage - Level 3
Inducement vs incentives - - Inducement is client specific
- Incentive is offered by the brokerage to any potential client
Records must be: - - kept in Alberta
- maintained in electronic form
- kept by brokerage for 3 years
- accessible to RECA for inspection
- they can be held in multiple locations, provided they're all in Alberta
Personal Ethics - Morals - held by individual
Ethics - Standard of Conduct (values/beliefs that guide actions)
Professional Standards - Rules and Regulations
Real Estate Insurance Exchange (REIX) - - provides financial protection
- compensates consumers up to $35,000
- mandatory errors & omissions insurance + negligence
- excludes injuries or death, transfers of title, commission/fees
- $3,500 is the first deductible
- $7,000 if second claim.
- RECA collects premiums with licensing fees
Tort Law - Compensation for civil wrongs that result in harm
- Negligent Tort
- carelessness, failure to exercise reasonable care
- Intentional Tort
- assault, fraud, theft, defamation
- strict liability Tort
- the act itself, producting defective products, using hazardous materials
Ethical Decision Making - 1. Recognize
2. Analyze
3. Test
3A. Seek assistance if needed
4. Implement
Duty based approach to ethical decision making - - individuals intentions or motives
- belief in universal moral system of ethical reasoning
, - individuals should do the right thing because its the right thing to do
Benefits of REIX - - enhances the image of the profession
- has the potential to save on insurance costs
- The profession is active in managing the program and its risks
Errors nand nOmissions nInsurance n- n nreal nestate nequivalent nof nmalpractice ncoverage
Comprehensive nGeneral nLiability nInsurance n- n n- nbroad ncoverage nfor nclaims nagainst
ninjury/damage
- ncivil nliability n(a nfall)
- nany ndamages nor ninjuries
- nlegal ndefense ncosts
- ndoes nnot ncover nissues nrelated nto nreal nestate ntransactions
Voluntary nBroker nResolution nProcess n(VBRP) n- n n- nenables nbroker nto ntake nthe nlead nin
nresolving ncomplaints nand ndisputes
- nprior nto nRECA n+ nFormal ncourts
- nbrokers nconfer nwith nREIX nbefore nproceeding
Benefits nof nVoluntary nBroker nResolution nProcess n- n n- navoids ntime nand nintrusion
ninvolved nwith nRECA ninvestigation
- nidentifies ndeficient nbrokerage npractices nthat nneed nimprovement
- nallows nparticipation nin nthe nprocess nto nachieve nacceptable nresolution
- nopportunity nto nmend nrelationship nwith nconsumer
Privacy nLaw n- n n- nBrokerages nmust ndesignate na nprivacy nofficer nto nbe naccountable nfor
ncompliance
- nmust nbe nconsistent nwith nthe napplicable nprivacy nlegislation
Three ncomponents nof nbroker nleadership n- n nAuthority, nresponsibility, nand naccountability
Financial nTransactions nand nReports nAnalysis nCenter nof nCanada n(FINTRAC) n- n n-
nresponsible nfor ncollection, nanalysis nand ndisclosure nof ninformation
- nidentifies nlists nof ngroups nunder ntheir nwatch
- nbrokers nmust nreport nsuspicious ntransactions
Safeguards nto nprotect npersonal ninformation n- n nAdministrative, nTechnological, nPhysical
Confidential ninformation n- n nincludes nboth npersonal nand nbusiness ninformation
- nnot nreadily navailable ninfo, nmay nhave nvalue
What nis nexpress nconsent? n- n nConsent ngiven nverbally nor nin nwriting n(Think nof nyour
nrelationship nwith nyour nlawyer)
