100% CORRECT WELL DETAILED ANSWERS|LATEST
3 fundamental principles of fiduciary duty. AKA the 3 principles that give rise to fiduciary
duties in a representation relationship: - ANSWER Trust and Confidence, Best
Interests, Loyalty
8 General Obligations of REPs - ANSWER Exercise Care and Skill, Act Honestly,
Negotiate Favourable terms, Maintain Confidentiality, Disclose Information, Act in Person,
Obey Lawful Instructions, Perform Mandate
6 Points of Fiduciary Duties - ANSWER Provide Utmost Loyalty, Not make secret
profits, Handle Confident Information Properly, To Account, Avoid conflicts of interest,
Disclose conflicts of interest.
"To Account" meaning - ANSWER Real estate professionals must account for all money
and/or property belonging to the client. This duty compels a real estate professional to
safeguard all money, documents, property, and information entrusted to them that relate to
the client's transaction.
"arm's length transaction" meaning - ANSWER In real estate, an arm's length
transaction is when the buyer and seller each act in their own self-interest to try to get the
best deal they can.
4 common examples of deals that are not arm's length transactions - ANSWER Sales
between friends or family members
Sales between an employer and his or her employees
Sales between a parent company and one of its subsidiaries
Sales between a trust and its beneficiaries
1
,2 options if REP cannot provide competent service to a client - ANSWER Be
Supervised, Refer
To determine if a REP has met the standard of care in a given situation, an objective review
of all facts is performed. 3 measures to determine if that has been met. -
ANSWER Professional Standards, Professional Norms and Practices, Expert Testimony
"Expert Testimony" Meaning - ANSWER Other real estate professionals, or experts,
may provide information as to the expectations of a reasonable and prudent real estate
professional and how they would have conducted themselves in similar circumstances.
9 points in "Meeting the Standard of Care" - ANSWER 1. Know the Type of Consumer
Relationship 2. Act consistent with the relationship chosen 3. Know the Brokerage Service 4.
Know the brokerage Policies and procedures 5. Be Aware of Market and Practical Issues 6.
Make Reasonable Efforts to Confirm information 7. Exercise Due care when preparing
documents 8. Seek Advice when appropriate 9. Be a Lifelong learner
When is written disclosure needed? - ANSWER Whenever a REP receives or is about to
receive confidential information; including the consumer's real estate needs, motivation, or
financial ability.
4 things that must be included in written disclosure - ANSWER 1. Whether the REP has
entered into a representation relationship with another party to the real estate transaction
2. The service the REP will provide the consumer 3. Any conflicts of interest that may exist
between the consumer and the REP 4. Any additional facts or information that may
influence the consumer's decision to proceed with the real estate relationship.
Which guide must REPs practicing residential real estate must REPs provide to consumers for
relationship disclosures (the guide includes all information REPs must include in written
disclosures under the Rules) - ANSWER RECA's Consumer Relationship Guide
2
, For needed when non-representation relationship is selected by consumer (then becoming a
customer) - ANSWER Customer acknowledgement form
Form needed when representation relationship is chosen by consumer (then becoming a
client) - ANSWER Written Service Agreement
Does RECA's consumer relationships guide, customer Acknowledgement forms and written
service agreements contain mandatory content? Can it be changed? - ANSWER Yes.
Although these documents may be changed at the request of a consumer or tailored to the
needs of a brokerage (eg. logo added, broker information added), content, meaning and
intent must not be altered.
Representation relationships are NOT established by the following 4 actions -
ANSWER 1. REP conveying documents or providing general information to consumers
2. REP using certain terms to refer to consumers (eg client customer) 3. Consumers using
certain terms to refer to REP (eg. Real estate agent, lease agent, buyers agent) 4.Consumers
paying remuneration (ie commission, fees) to the REP's brokerage
5Ds of Role Clarity and Consistency (5 words) - ANSWER 1. Discuss 2. Determine 3.
Document 4. Disclose 5. Do
Longer explanations of the 5Ds of Role Clarity and Consistency (sentences) -
ANSWER 1. Discuss the Real estate relationship 2. Determine your representative
capacity 3. Document your representative capacity in writing 4. Disclose your representative
capacity (ie. seller's agent, buyer's agent, landlord's agent, or tenant's agent) 5. Do actions
with your representative capacity consistent with your established relationship
6 Benefits of Role Clarity and Consistency - ANSWER 1. Meets Regulatory
Requirements 2. Enhances professionalism 3. Prevents Unintended relationships 4. Clarifies
responsibilities to consumers 5. Clarifies services to consumers 6. Reduces disputes
True or False - Making referrals is a fiduciary duty that REPs owe to clients -
ANSWER False
3
3 fundamental principles of fiduciary duty. AKA the 3 principles that give rise to fiduciary
duties in a representation relationship: - ANSWER Trust and Confidence, Best
Interests, Loyalty
8 General Obligations of REPs - ANSWER Exercise Care and Skill, Act Honestly,
Negotiate Favourable terms, Maintain Confidentiality, Disclose Information, Act in Person,
Obey Lawful Instructions, Perform Mandate
6 Points of Fiduciary Duties - ANSWER Provide Utmost Loyalty, Not make secret
profits, Handle Confident Information Properly, To Account, Avoid conflicts of interest,
Disclose conflicts of interest.
"To Account" meaning - ANSWER Real estate professionals must account for all money
and/or property belonging to the client. This duty compels a real estate professional to
safeguard all money, documents, property, and information entrusted to them that relate to
the client's transaction.
"arm's length transaction" meaning - ANSWER In real estate, an arm's length
transaction is when the buyer and seller each act in their own self-interest to try to get the
best deal they can.
4 common examples of deals that are not arm's length transactions - ANSWER Sales
between friends or family members
Sales between an employer and his or her employees
Sales between a parent company and one of its subsidiaries
Sales between a trust and its beneficiaries
1
,2 options if REP cannot provide competent service to a client - ANSWER Be
Supervised, Refer
To determine if a REP has met the standard of care in a given situation, an objective review
of all facts is performed. 3 measures to determine if that has been met. -
ANSWER Professional Standards, Professional Norms and Practices, Expert Testimony
"Expert Testimony" Meaning - ANSWER Other real estate professionals, or experts,
may provide information as to the expectations of a reasonable and prudent real estate
professional and how they would have conducted themselves in similar circumstances.
9 points in "Meeting the Standard of Care" - ANSWER 1. Know the Type of Consumer
Relationship 2. Act consistent with the relationship chosen 3. Know the Brokerage Service 4.
Know the brokerage Policies and procedures 5. Be Aware of Market and Practical Issues 6.
Make Reasonable Efforts to Confirm information 7. Exercise Due care when preparing
documents 8. Seek Advice when appropriate 9. Be a Lifelong learner
When is written disclosure needed? - ANSWER Whenever a REP receives or is about to
receive confidential information; including the consumer's real estate needs, motivation, or
financial ability.
4 things that must be included in written disclosure - ANSWER 1. Whether the REP has
entered into a representation relationship with another party to the real estate transaction
2. The service the REP will provide the consumer 3. Any conflicts of interest that may exist
between the consumer and the REP 4. Any additional facts or information that may
influence the consumer's decision to proceed with the real estate relationship.
Which guide must REPs practicing residential real estate must REPs provide to consumers for
relationship disclosures (the guide includes all information REPs must include in written
disclosures under the Rules) - ANSWER RECA's Consumer Relationship Guide
2
, For needed when non-representation relationship is selected by consumer (then becoming a
customer) - ANSWER Customer acknowledgement form
Form needed when representation relationship is chosen by consumer (then becoming a
client) - ANSWER Written Service Agreement
Does RECA's consumer relationships guide, customer Acknowledgement forms and written
service agreements contain mandatory content? Can it be changed? - ANSWER Yes.
Although these documents may be changed at the request of a consumer or tailored to the
needs of a brokerage (eg. logo added, broker information added), content, meaning and
intent must not be altered.
Representation relationships are NOT established by the following 4 actions -
ANSWER 1. REP conveying documents or providing general information to consumers
2. REP using certain terms to refer to consumers (eg client customer) 3. Consumers using
certain terms to refer to REP (eg. Real estate agent, lease agent, buyers agent) 4.Consumers
paying remuneration (ie commission, fees) to the REP's brokerage
5Ds of Role Clarity and Consistency (5 words) - ANSWER 1. Discuss 2. Determine 3.
Document 4. Disclose 5. Do
Longer explanations of the 5Ds of Role Clarity and Consistency (sentences) -
ANSWER 1. Discuss the Real estate relationship 2. Determine your representative
capacity 3. Document your representative capacity in writing 4. Disclose your representative
capacity (ie. seller's agent, buyer's agent, landlord's agent, or tenant's agent) 5. Do actions
with your representative capacity consistent with your established relationship
6 Benefits of Role Clarity and Consistency - ANSWER 1. Meets Regulatory
Requirements 2. Enhances professionalism 3. Prevents Unintended relationships 4. Clarifies
responsibilities to consumers 5. Clarifies services to consumers 6. Reduces disputes
True or False - Making referrals is a fiduciary duty that REPs owe to clients -
ANSWER False
3
