2023/2024 OACIQ Exam Prep - Questions with Verified Answers

2023/2024 OACIQ Exam Prep - Questions with Verified Answers When do you need a new certificate of location? If previous one is older than 10 years, requires a new one. In the description sheet in MLS, inform collaborating brokers that a new one will be available soon. Seller asks to reduce commission if you find a buyer? You can include a clause in the BCS in 11.1 stating that in the event that you find a buyer, you will reduce your commission to 3%, however in the case of multiple offers, this clause becomes not applicable. What if buyer asks to put a term in the BCP? -Ask your client what is the reason for the term? -Inform client that as per 180 day rule, a remuneration is owed to the broker for any properties visited with that broker and purchased by that buyer. This rule is applicable after the end of term of the BCP for 180 days. How to calculate shared remuneration with collaborating broker? BCP = 3% PP = 2.5% shared How is invoice calculated? 2.5% is invoiced to the seller's agency 0.5% is invoiced to the buyer/client When is the Reduced Compensation (RCOM) annex used? In clause 2.1: Seller finds any buyer within specified time frame agreed upon, no commission will be charged (non applicable if multiple offer situations). In clause 2.2 Seller finds a designated buyer within specific time frame (don't put too long), no commission will be charged (non applicable in multi-offer situations) Note: If you agree to 0$, then you still have to do all the work and you're not eligible for your insurance coverage!! Can also use 11.1 of BCS instead of this annex if you choose to. Prequalifying a buyer? Advise client to always set aside between 1.5% to 2% of sale price for amounts pertaining to the purchase of an immovable. Always recommend that buyer go to a mortgage broker to get prequalified prior to purchasing a home. Prior to setting a price for a PP? What should be done? Complete a market analysis of recent properties sold in that area to determine the appropriate price to offer in a PP. Also review the DS in detail with client prior to completing the PP and have client sign the acknowledgement of receipt first! Always annex DS to PP!! If purchasing a condo, check contingency funds, minutes of meeting for upcoming costs on repairs and verify fractions of costs that buyer may have to pay. When to use an Amendment (AM) form? -When BCS is already completed & signed and need to make modifications; -When PP is already signed & accepted -When DS is already completed and signed and an inspection report discovers new issues; -When you need to extend a condition on a PP (e.g. extension on financing, additional inspector required, etc. Time frame for inspections? Min 14 days: 10 days for inspection and 4 days for seller to review inspection. Time frame for condition on obtaining financing? Min 15 days: 10 days for obtaining mortgage and 5 days for seller to review/respond with acknowledgment of receipt. If seller accepts to pay for repairs? He must: -Pay for repairs -Submit invoice of repairs; and -Submit transferable warranty of quality OR: -Reduce price by cost of repairs; and -buyer pays repairs himself AND seller removes clause that those repairs are sold w/ legal warranty of quality (sellers doesn't want to be responsible for repairs he didn't do). How to write a special clause? Requires 5 elements: -Date -Something to be done by a specific person -Deadline for doing it -A notice to be sent if an understanding is fulfilled or not -Consequence (null and void, satisfied, monetary compensation, etc) is not fulfilled Example of a Special Clause: As per the inspection report conducted on (date/time); a verbal agreement was made between the buyer and the seller that the sale price will be reduced by $5,000 to repair the patio door. The new sale price will be $500,000. There is no legal guaranty of quality on these elements constituting the base sale price. This promise to purchase is conditional upon the SELLER replacing the patio door as recommended in the inspection report dated (dated/time). The SELLER must fulfill this obligation within 20 days following the accepted promise to purchase. The SELLER must notify the BUYER within the specified delay and by registered mail that the obligations have been fulfilled. If the written notice is not received within the specified delay, an amount of $5,000 will be withheld by the notary upon the deed of sale and remitted to the BUYER within the adjustments. Preparation of a sale dossier, what documents should you gather? Minors: If for a minor = requires tutor with authorization If for a minor w/ full emancipation = minor alone Person of full age w/incapacity = curator Person who needs assistance = advisor Successions: No will/no liquidator = all legal heirs No will/ w/liquidator = liquidator authorized by legal heirs or court of law W/Will/no liquidator = the legatees W/Will/w/liquidator = liquidator (w/full administration) or liquidator authorized by legatees (w/simple administration) Liquidation of estate = need notarized Will or copy of judgment or minutes for verification of the Will, and copy of the Will if holograph (hand written) or before witnesses (hand written in front of 2 witnesses) Post liquidation of estate = Declaration of transmission for all successions and Sharing Act of legal heirs if applicable and/or copy of Delivery of Legacies Condo = Declaration of co-ownership Marriage = Declaration of family residence? Matrimonial regimes? Natural Persons - 18 years old and above - Who signs?