RECA Fundamentals Verified Q&A Scored 100%

RECA Fundamentals Verified Q&A Scored 100% Individual is expected to do the right thing cause it's the right thing to do, regardless of outcome *ANS* duty-based ethics Sells the optimal result for the greatest number of people *ANS* utalitarian ethics Punishment for a technical breach *ANS* Advisory note One or two potentially serious infraction would cause this punishment *ANS* Administrative penalty/ fine These two ways of creating a representation relationship should not be done in real estate *ANS* Ratification- acting without authority or in excess of authority Implication- advice outside of objective This representation relationship arises when a principal acts in a way that leads a third party to believe an agent has been given authority when in actuality the agent hasn't consented or even knows about it *ANS* By Estoppel This type of representation relationship is created when someone takes action to save a property or person from imminent danger/ damages *ANS* By operation of law Voluntary set of rules and guiding principles an individual uses as their moral compass. Standard of conduct adopted and practiced within a culture or society li *ANS* Ethics A set of beliefs held by an individual and founded on fundamental principles of right and wrong. Ex. Religious *ANS* Morals What area of law deals with civil wrong doings for which the courts may grant a remedy. ( harm to a person or damage to property) *ANS* Tort law Max the real estate assurance fund may pay per claimant for damages or losses to the services of a real estate professional *ANS* 35,000$ Compensate consumers who have received court judgement against a real estate professional for fraud or breach of trust *ANS* Purpose of Real Estate Assurance Fund To protect real estate professionals when they make a mistake regarding their business *ANS* Real estate insurance exchange REIX Where moral development is based on individual reflection and analysis of the issues ( level 3 stage 6) *ANS* Kohlbergs highest stage of moral development The ability of purchasers to cancel their purchase contract with a developer within 10 days *ANS* Right of Recission Ownership in common with others *ANS* Condominium If someone forgets the condo management company name for any reason where would they find it *ANS* CADS Can make all decisions about finances or legal affairs has no limit other then where they'll live or health care *ANS* General power of attorney Will power or at tourney be on the title *ANS* Yes Permit that applies to specific project that is an improvement to the property *ANS* building permit Permit that applies to overall use of the land *ANS* development permit Non conforming suite means ? *ANS* It was legal at time of development Municipal special taxes are for *ANS* Waterworks Repair of roads Ambulance Taxes used in a business district to improve beauty, parking, or promote *ANS* Business revitalization tax Landlord may enter without consent but with notice after giving how much notice *ANS* 24 hrs Tenant isn't returning to the property so all obligations and rights go to the new tenant *ANS* Assignment Tenant will be returning to the property, and they're still liable to the landlord *ANS* Sublease Condos are governed by the *ANS* Condominium Property Act This act prevents non Canadians from buying significant amounts of prime land *ANS* Agricultural and recreational land ownership act Refers to information that makes an individual identifiable *ANS* Personal information Real Estate brokerages must report suspicious transactions to which organization *ANS* FINTRAC Types of consent *ANS* Express Implied Opt-out Makes decisions like healthcare, living arrangements, diet, dress. And they're not on title search why? *ANS* Guardian, Cause they're not entitled to make financial decisions regarding land Reactions associated with conflicts or disputes *ANS* Physical Emotional Cognitive In terms of brokerage what 3 components of leadership relate to the broker *ANS* Authority Responsibility Accountability Brokers who use VBRP typically have experience in which role *ANS* Negotiator Frequent causes of conflicts and disputes *ANS* Assumptions Omissions - non act Commissions- over act First claim with REIX Second claim within 3 years if first *ANS* 3500$ 7000$ How many days does broker have to reach resolution in VBRP *ANS* 40 days 3 basic principles of competition act *ANS* Do not collude Do not discriminate Do not mislead public through advertising What do you use if a customer chooses a representation relationship therefore being a client *ANS* Written service agreement What do you use if consumer chooses a non-representation relationship therefore being a customer *ANS* Customer acknowledgment form A law or act passed by either government provincial or federal *ANS* Statue law In regards to condo financial statements the balance sheet formula is *ANS* Assets = Liabilities + Equity Types of Financial statements for condo corporations *ANS* Income Statement Balance sheet Cash flow statement Construction method that reinforces concrete *ANS* Post tension cables Monthly contributions assessed for the particular unit *ANS* Info found on estoppel certificate Upon new creation Reserve fund study must be done within how many years *ANS* 2 How frequent must condo corporation hold annual general meeting *ANS* Within 15 months What types of meetings can the condo corporation change bylaws at *ANS* Extraordinary General Annual general Types of condos in Alberta *ANS* Bare land Barely blended Conventional A condominium administrator is a *ANS* Court appointed manager How many days does a condo management company have to provide a copy of management agreement upon receiving written request *ANS* 10 A reserve study and plan must be repeated on existing condos every how many years *ANS* 5 Laws made by the courts *ANS* Common law The 5 D's of role clarity and consistency *ANS* Discuss Determine Document Disclose Do These measures are used to establish the standard of care *ANS* Professional Standards Professional norms and practices Expert testimony A means to resolve a conflict of interest that occurs when a brokerage practices agency under common law or a real estate professional in designated agency, represents clients with opposing interests in the same transaction *ANS* Transaction brokerage Types of authority agent may hold in a representation relationship *ANS* Express Authority Implied Authority Customary Authority 3 fundamental principles upon which fiduciary duties are based *ANS* Trust and confidence Best interests Loyalty A spouse, or children ate considered what degree of relative *ANS* 1st degree relative First cousins, great grandparents, great grandchildren are what degree of relative related to conflicts *ANS* 3rd degree relative Grandparent, aunt, nephew, half-sibling, step sibling is what degree of relative related to conflicts *ANS* 2nd degree relative Is higher when representing clients over customer *ANS* Standard of care Which service provided to a client is the highest standard of care *ANS* Property management Ways to terminate representation relationship *ANS* By agreement By revocation By operation of law When principal or agent fails to fulfill their responsibilities to the other party *ANS* Lawful revocation When principal or agent terminate representation relationship even though the responsibilities have been fulfilled *ANS* Unlawful Revocation Conflicts of interest arise in 3 types of circumstances what are they *ANS* Competing Opposing Brokerage When referring to conflicts of interest the Brokerage interests can be either *ANS* Direct Indirect An actual conflict between interests of the client and the brokerage *ANS* Real conflict of interest Conflict between the client and real estate professional or brokerage is perceived *ANS* apparent conflict of interest Does a real estate professional have general obligations or fiduciary duties to a customer *ANS* Nope Authorization to act in a particular way *ANS* Mandate If given express authority they have _________ authority. All necessary actions to complete express authority. *ANS* Implied Capacities for which an agent must have express authority from a principal to act. (Limits on authority) *ANS* Capacity to contract Capacity to delegate Capacity to incur expenses What responsibilities do real estate professionals owe customers *ANS* Some general obligations A relationship that allows multiple brokerages to act on behalf of an individual client *ANS* Non- exclusive representation relationship In real estate how are representation relationships typically established? *ANS* Written agreement If an consumer enters into a non-representation relationship they'll be treated as a ? *ANS* Customer What must a transaction facilitator disclose the the clients *ANS* To the buyer- material latent defects To the seller- buyers ability to purchase When are fiduciary duties owed by a real estate professional? *ANS* As soon as confidential information is rec Responsibilities of clients based on common law are *ANS* Indemnification ( repay) from costs Remuneration ( payment) for services Disclosure or relevant info Methods by agreement for termination of representation relationship *ANS* Mutual consent Expiry Completion / performance What is the reason for a contract ending if performance is made impossible by one party *ANS* Breach According to the statute of frauds which contracts are required to be in writing and signed by all parties *ANS* Sale or transfer of land To answer for the debt or duty of another That by agreement can't be completed within 1 year Consideration must be *ANS* Lawful or be of some value Difference between conditions and terms in a contract *ANS* Conditions must be waived for contact to proceed A contract can still proceed with unmet terms If two sisters are labelled "jointly and separately" to make decisions for their incapacitated mother how do they make decisions *ANS* They can make decisions on their own When a party enters into a contract due to threat or violence *ANS* Concept of duress What rights are included in the bundle of rights? *ANS* Posses Use Enjoy Sell the land Legal action can only be taken by the contracting parties and only original parties are bound by the contract *ANS* privity of contract One party makes an obligation to perform an act or promise without receiving anything in return *ANS* Unilateral contract What type of contact condition do we use in Alberta for real estate purchase contracts *ANS* Conditions Precedent Remedies for breach of contract *ANS* Monetary damages Quantum Meruit Specific performance Injunction Where damages are inadequate courts may make the party carry out their promise *ANS* Specific performance Contractural promise was to refrain from doing something, so this may be awarded to restrain the offending party form doing that act *ANS* injunction It specifies one party's duty to act in exchange for another party's duty to act *ANS* Bilateral Contract Seller decides not to sell anymore so brokerage may be entitled to recover advertising costs *ANS* Quantum Meruit Type of termination or discharge of contract where the house catches fire or it's destroyed making it impossible to fulfill *ANS* Frustration One party challenges the contract that's lacking one or more essential elements *ANS* Voidable Contract Refers to land, real estate and property rights *ANS* Real Property In this type of real property ownership owners can have unequal shares, can be willed, involves two or more property owners *ANS* Tenancy in common In this type of real property ownership if one dies the shares go to the surviving owners and all shares are equal and 4 conditions must be present Time, title, interest, possession. If any are absent it changes to tenancy in common. Most common for married couples. *ANS* Joint Tenancy What encumbrances take priority over the mortgage *ANS* Condo fees Property taxes Longitudinal lines running north an south 24 miles apart *ANS* Meridians Longitudinal lines that run between meridians 6 miles apart *ANS* Ranges East and west lines running 6 miles apart numbered 1 at southern Alberta and 126 at northern Alberta *ANS* Townships Townships are divided into *ANS* Sections This principle means that the current certificate of title accurately shows the current facts of the property *ANS* Mirror principle This principle contains all info about the title; current interests and past interests *ANS* Curtain Principle This principle means that the government provides compensation for any losses caused by errors or fraud with title *ANS* Insurance principle Land conveyance system used for land ownership and land transfer, governed by Land Titles Act *ANS* Torrens System Tenant must give 1 month notice to landlord to terminate periodic tenancy *ANS* Monthly periodic tenancy Tenant must give 60 days notice to landlord to terminate periodic tenancy *ANS* Yearly periodic tenancy Landlord must give 3 months to tenant to terminate periodic tenancy *ANS* Monthly Right to use land in common with others. Access roads, overland drainage *ANS* Easement Notice of claim or warning that someone is claiming interest in the land *ANS* Caveat A result of an item being built, placed or erected on an adjoining property. Soffits , eaves overhanging adjoining land Real property report would show this *ANS* Encroachment Places restriction or limitations on the use or architectural detail of the property. You can't build unless it's brick, restrict building height *ANS* Restrictive covenants legal claim on someones property as a security for a debt *ANS* Liens a claim registered against the title to land by a contractor, supplier of materials or workman with respect to work done or materials supplied to improve that land *ANS* Builders Lien Builder has how many days to go to court to register a certificate of lis pendens *ANS* 180 days A title registration regarding judgement against the owner (debtor) *ANS* Writs of enforcement Notice on title that a court action or litigation is in progress regarding the land *ANS* Certificate of Lis Pendens Confirms building location (setbacks) confirms with requirements *ANS* Municipal Certificate of Compliance Municipal tax rate which is an amount per 1000$ *ANS* Mill rate Land and any permanent improvements to the land and property rights to go with the land *ANS* Real Property Provides owners compensation if they suffer a loss due to an error on title *ANS* Land Titles Assurance Fund According to the water act requirement must be met for the individual to be able to divert water *ANS* Water license Land use jurisdiction classifications are referred to as *ANS* Land use districts The land use confirms with the permitted use for that classification *ANS* Permitted use Which rights are included in real property ownership bundle of right so *ANS* Right to lease Sell Use Giveaway Retain Anything advertised to a person or the public for the purpose of attracting business to the brokerage. Promise, good, service, game of chance or contest. *ANS* Incentive Anything offered by the brokerage to a specific person who is a party to a specific real estate trade with intent to persuade or cause them to enter into such a transaction *ANS* Inducement Document that records the information about the land such as legal land description, municipal description, ownership, and registered internists *ANS* Certificate of Title The ground and that which is beneath it and above it *ANS* Land What forces affect property values *ANS* Physical Economic Political/ govt Social Different types of approaches used by real estate appraisers *ANS* Direct Comparison Income approach Cost approach Types of property analysis that contribute to property valuation *ANS* Comparative Market Analysis Income analysis Cost analysis This type of property valuation report heavily relies on accurate record keeping and examines revenue/ expenses associated with the property, typically used in commercial real estate *ANS* Income analysis This type of property valuation analysis relies on a solid in depth cost of construction and ability to calculate depreciation *ANS* Cost Analysis This type of property valuation analysis compares recent sales of similar properties. Used in residential *ANS* Comparative Market Analysis (CMA) Key criteria for highest and best use *ANS* legal permissibility Physical possibility Financial feasibility Maximally productive In this type of mortgage fraud there's two purchase contracts and the lower one is given to the financial institute *ANS* Contract kiting A lender in a mortgage loan transaction *ANS* Mortgagee A borrower in a mortgage loan transaction *ANS* Mortgagor Occurs when the loan amount exceeds 80% of the property value or sale price whichever is less *ANS* High ratio mortgage A formal written direction specifying that a party with relevant documents produce those documents for the purpose of a professional conduct review *ANS* Production order A aspect of a contract that serves an impediment to an enforceable contract, until it's been satisfied or waived *ANS* Condition A contractual condition that is presumed to have been met by the deadline stated in the contract if no notice has been provided *ANS* Conditions Subsequent A contractural condition that must be removed before the deadline in or order for the contract to proceed *ANS* Conditions Precedent A document in which instruments for or against a condo plan and condo corporation are registered with Alberta land titles *ANS* Condominium Additional Plan Sheet A two or three dimensional plan that outlines the size, location and boundaries of the land. Also divides the property into units and common areas *ANS* Condominium plan Information that's not readily accessible and posses some sort of value *ANS* Confidential information Element of a contract that shows what each party receives in exchange for promised actions *ANS* Consideration Economic indicator that measures over time the change in cost of a fixed basket of goods purchased by families living in urban and rural households *ANS* Consumer Price Index (CPI) A type of condo plan in which units are defined spaces within a building, boundaries are determined by floors, walls and ceilings. All areas not included are considered to be common property *ANS* Conventional condo plan A mortgage load that doesn't exceed 80% of appraised value *ANS* Conventional mortgage Formal process of transferring legal title of land and recording interests *ANS* Conveyancing A signed statement from the condo corp that confirms the financial info provided regarding a unit is correct as of the date on statement *ANS* Estoppel Certificate A meeting with board of directors and all members of condo corp to address a specific issues that needs immediate attention *ANS* Extraordinary meeting A measure used by lenders to asses the borrowers ability to carry the debt load for a mortgage *ANS* Gross Debt Service Ratio A person bound by promise to pay a debt or perform an obligation of another individual *ANS* Guarantor An estate or right in the land that can't be defeated, revoked or made void *ANS* Indefensibility Least severe form of discipline following a professional conduct review *ANS* Letter of Reprimand A physical deficiency in a property that is visible through property inspection *ANS* Patent defect Legal test under common law that uses a set of connecting factors for determining the jurisdiction over a certain claim *ANS* real and substantial connection Alberta legislation regulating real estate, mortgage brokerage and real estate appraisers *ANS* Real Estate Act Guidelines adopted by council for its governance and administrative functions *ANS* The Act Bylaws Amendments or interpretations to sections of the act made by minister or lieutenant governor in council *ANS* The Act regulations Standards of practice for industry professionals amended by council *ANS* The Act Rules A plan defining boundaries and subdividing volumetric space into (layered space) *ANS* Strata plan Ownership in real estate of more then 25% *ANS* substantial interest An activity either intentional or non intentional by a person that results in wrong being committed a against another person. May be personal injury, damage to reputation or property *ANS* Tort A process that enables brokers to resolve consumer complaints and disputes *ANS* Voluntary broker resolution process Unimproved or raw land plus any improvements that are permanent or fixed to the land *ANS* Real estate Represents the monetary value of all finished goods and services produced within a country in a given period. *ANS* GDP Monetary value of all finished goods and services produced by a country's citizens and enterprises whether physically located within its borders or abroad *ANS* GNP Document that is attached to and made part of an original contract as a result of making changes to elements already agreed to *ANS* Addendum Land titles online database with a wide range of property documents. Titles, registered interests, historical titles, condo bylaws *ANS* Spin2 When the interests of the brokerage are at odds with the interests of a client of the brokerage *ANS* brokerage interests A rational informed buyer would pay no more for a property then it would cost to purchase another property that's equally desirable *ANS* Principle of Substitution Parking stall or storage lockers that use bold lines on condo plan are *ANS* Titled Parking stalls or storage lockers that use dashed lines on condo plan are *ANS* Exclusive use The _________ provide for the operations and administration of the council *ANS* Bylaws If you don't renew your registration how long is it before you have to get a new criminal record check *ANS* 1 year If you cease to be registered with a brokerage how long is your licence valid for *ANS* 36 months an area of law dealing with representation relationships created between two principals and agents *ANS* Agency Law Limited authority granted to an agent by a principal *ANS* Specific Authority Broad authority granted to an agent by a principal *ANS* general authority lowest point of a business cycle *ANS* Trough What colour is the screen if you're not authorized on the find a professional *ANS* Grey What colour is the screen if you're renewal period has started or you're eligible to renew *ANS* Yellow If an unauthorized assistant deals with the public who has to hire them *ANS* brokerage A lottery exists when which 3 elements are present ( must get a license) *ANS* A payment of consideration(buying a property) A chance to win a prize Prize being awarded Information connected before the privacy legislation was implemented is called *ANS* Legacy information If the local market is declining what type of housing market would there be *ANS* Buyers If the local market is booming what kind of housing market would there be *ANS* Sellers When a false statement is made by a person who fails to confirm its truthfulness *ANS* Reckless misrepresentation When a false statement is made by a person who believed it to be true *ANS* Negligent Misrepresentation Max fines from PIPA if convicted of an offence *ANS* 10,000 for individual 100,000 for business General advertising to the public done by the brokerage *ANS* institutional advertising The competition act is concerned with two key issues, what are they *ANS* Conspiracy among competitors False or misleading advertising This best describes the protocol for a mutual agreement *ANS* Offer Acceptance Communication Form used along with listing agreement identifying info about sellers property - mortgage specifics, residential leases *ANS* Appendix Form used along with purchase contract to specify info for the benefit of the buyer - condo documents to review *ANS* Schedule Powers of govt that limit private land ownership rights *ANS* Taxation Eminent domain Police power Escheat Types of survey plans that can be registered at land titles office *ANS* Fee Simple Condominium Strata Which condo plan includes includes common property unit *ANS* Barely blended condominium plans What type of storage area can be redistributed at discretion of board of directors *ANS* Assigned storage areas Registration of a security interest against an individuals personal property *ANS* Intent of security agreement The value of a commodity as expressed in monetary terms *ANS* Value in exchange The value of a commodity as determined by the cost of creation *ANS* Objective value 3 types of real estate appraisal reports *ANS* Form Letter of opinion Narrative Describe what is meant by reproduction costs *ANS* Cost to replace structure with exact same one that's currently exists Describe what is meant by replacement cost *ANS* Cost to replace structure with similar ones Which appraisal report is most detailed *ANS* Narrative report Covers claims from financial losses or damages related to errors, omissions and negligence *ANS* Errors and omissions insurance known as professional liability insurance Private legal action between two parties *ANS* Civil liability Under the insurance act what kind of insurance is REIX. *ANS* reciprocal insurance When a real estate professional holds money, documents, keys to home, or personal belongings they have __ _______ and safeguard them. *ANS* To account By operation of law which method of terminating a representation relationship is when a building is destroyed in a fire - ceases to exist *ANS* Impossibility Elements of representation relationships are *ANS* Creation of law Consensual Controlled by principal Usually involves fiduciary duties Affects principals legal position