Unit 2(RECA)QUESTIONS WITH COMPLETE SOLUTION LATEST 2023/2024

Unit 2(RECA)QUESTIONS WITH COMPLETE SOLUTION LATEST 2023/2024The purposes of RECA according to the Act is the following... - correct answer 1. Set and enforce rules for industry members to follow, to promote integrity, and protect the consumer from mortgage fraud. 2. Provide services that help industry professionals in the industry. 3. Administer (enforce) the Act through the Rules, Regulations & Bylaws Describe and explain the differences between the Rules, Regulations & Bylaws - correct answer 1: Rules are a set of instructions to be followed by all industry professionals 2. Regulations are the changes (amendments) to the Act (not rules). 3. Bylaws are administrative guidelines (rules) that RECA uses to operate its business List industry sectors who are under jurisdiction of the Act - correct answer Associates, associate brokers, brokers, mortgage brokers and real estate appraisers Name & explain the resources developed by RECA and where to find them. - correct answer 1. Information Bulletins, which provide a short explanation of sections in the Act or Rules. Can be found on the RECA website. 2. RECA Guides, which are a more detailed version of Information Bulletins. Can be viewed on the RECA website Explain the 6 Parts in the Act - correct answer Part 1: Defines RECA's purpose and powers Part 2: States that industry members require authorization to trade in real estate/deal in mortgages & provide appraisal services Part 3: Ability to audit the conduct of industry members Part 4: Real Estate Assurance Fund designed to protect consumers from fraud or breach of trust. Part 5: Requires industry members to be educated in real estate & mortgage brokerages Part 6: Lieutenant Governor in Council provides guidelines on council orders Explain the 6 Parts in the Rules - correct answer Part 1: Industry members must be authorized with licenses through the eligibility requirements Part 2: Industry standards of practice Part 3: Accounting, record keeping & reporting requirements of Mortgage brokerages & appraisers Part 4: Requires industry members to carry errors & omissions insurance Part 5: Fees, ex: licenses/ real estate assurance fund Part 6: Identifies the date when these rules came into force