RECA Residential Unit 9 Study Guide
Exam Questions And All Correct
Answers.
Difference between a Customer, Common Law Agency and a Designated agency relationship -
Answer Customer Relationship is when a consumer represents themselves and is a customer
to the real estate representative or broker.
Common Law Agency Relationship is a client relationship which the brokerage represents the
buyer.
Designated Agency Relationship is a client relationship which the REP represents the buyer as a
designated agent.
6 responsibilities of a REP to their clients - Answer 1. Undivided Loyalty
2. Confidentiality
3. Full Disclosure
4. Obedience
5. Reasonable Care and Skill
6. Full Accountability
When should REPs discuss the Consumer Relationship guide with a buyer? - Answer Before a
service agreement is entered into
Do Non-exclusive buyer service agreements allow the buyer to have a representation
relationship with multiple real estate professionals? - Answer Yes
In the case the buyer pays the fee to the buyer client's REP, what happens to the fee the seller
, What happens if the fee the seller offers to pay more than the fee sought by the buyer's REP? -
Answer The buyer will receive the excess amount
If the seller is offering to pay less than the fee sought by the buyer's REP, the following options
are available for the buyer's REP. - Answer 1. The buyer may have committed through the
service agreement to pay the difference.
2. If the buyer chooses not to pay the fee or not to top up the fee paid by the seller, the REP is
not obligated to show those properties to the buyer.
If the brokerage or designated agent, buyer, or seller decides not to have the brokerage or
designated agent facilitate the transaction (through transactional brokerage), the brokerage or
designated agent will act as the sole agent for which of the parties? - Answer the first to have
signed a representation agreement (unless all the parties agree otherwise in writing)
Is GST applicable for the fees charged by REPs? is it typically included in the fee? - Answer Yes
it is applicable. No it is not typically included in the fee.
If the buyer enters into a legally binding contract to buy a property that matches the search
criteria, while the service agreement is in effect, but that purchase is not done through the REP
that they signed the service agreement with, do they still need to pay the fee? - Answer Yes
(under and exclusive agreement)
When does a sale complete? - Answer When all money has been paid to the lawyer and that
money is releasable.
How is content amended in a service agreement? - Answer by deleting content, strike a single
line through the content to be deleted and ensure the buyer/seller initials the deletion
If the expiry date is Tuesday, for example, who the the document end a) Midnight on Monday
night b) Tuesday at noon or C) Tuesday at 11:59pm - Answer C)
True or False - The written agreement must describe the types of property the buyer is looking
for and the areas (locations) of interest to them. - Answer True
True or False - Buyers can enter into multiple exclusive representation relationships with
Exam Questions And All Correct
Answers.
Difference between a Customer, Common Law Agency and a Designated agency relationship -
Answer Customer Relationship is when a consumer represents themselves and is a customer
to the real estate representative or broker.
Common Law Agency Relationship is a client relationship which the brokerage represents the
buyer.
Designated Agency Relationship is a client relationship which the REP represents the buyer as a
designated agent.
6 responsibilities of a REP to their clients - Answer 1. Undivided Loyalty
2. Confidentiality
3. Full Disclosure
4. Obedience
5. Reasonable Care and Skill
6. Full Accountability
When should REPs discuss the Consumer Relationship guide with a buyer? - Answer Before a
service agreement is entered into
Do Non-exclusive buyer service agreements allow the buyer to have a representation
relationship with multiple real estate professionals? - Answer Yes
In the case the buyer pays the fee to the buyer client's REP, what happens to the fee the seller
, What happens if the fee the seller offers to pay more than the fee sought by the buyer's REP? -
Answer The buyer will receive the excess amount
If the seller is offering to pay less than the fee sought by the buyer's REP, the following options
are available for the buyer's REP. - Answer 1. The buyer may have committed through the
service agreement to pay the difference.
2. If the buyer chooses not to pay the fee or not to top up the fee paid by the seller, the REP is
not obligated to show those properties to the buyer.
If the brokerage or designated agent, buyer, or seller decides not to have the brokerage or
designated agent facilitate the transaction (through transactional brokerage), the brokerage or
designated agent will act as the sole agent for which of the parties? - Answer the first to have
signed a representation agreement (unless all the parties agree otherwise in writing)
Is GST applicable for the fees charged by REPs? is it typically included in the fee? - Answer Yes
it is applicable. No it is not typically included in the fee.
If the buyer enters into a legally binding contract to buy a property that matches the search
criteria, while the service agreement is in effect, but that purchase is not done through the REP
that they signed the service agreement with, do they still need to pay the fee? - Answer Yes
(under and exclusive agreement)
When does a sale complete? - Answer When all money has been paid to the lawyer and that
money is releasable.
How is content amended in a service agreement? - Answer by deleting content, strike a single
line through the content to be deleted and ensure the buyer/seller initials the deletion
If the expiry date is Tuesday, for example, who the the document end a) Midnight on Monday
night b) Tuesday at noon or C) Tuesday at 11:59pm - Answer C)
True or False - The written agreement must describe the types of property the buyer is looking
for and the areas (locations) of interest to them. - Answer True
True or False - Buyers can enter into multiple exclusive representation relationships with
