Humber Real Estate - Course 1, Module 7 Introducing Other Relevant Legislation & Regulations exam |145 questions and answers

- Date and time of the request - Consumer's name and contact information - Applicable 10-digit phone number(s) A brokerage, as a telemarketer, must register with the National Do Not Call List (DNCL) but also maintain an internal do not call list. What should the internal do not call list contain? A minimum of 3 years How long must numbers recorded on the internal Do Not Call List be kept? If the person ... - Made an inquiry within the last six months - Purchased, leased or rented a property through the brokerage in the past 18 months - Had a written agreement with the brokerage (i.e. a representation agreement that is still in effect or expired within the past 18 months) In what situations can an exception be made to the DNCL? Both Before calling someone, should you reference the National Do Not Call List or the Internal Do Not Call List? No. It's not a salesperson's responsibility. Add them instead to the Internal DNCL. If someone doesn't want to be called anymore, should you add them to the National Do Not Call List? To help create a safer and more secure online environment by setting requirements for sending commercial electronic messages (CEMs). What is the goal of Canada's Anti-Spam Legislation (CASL)? Any electronic message that encourages participation in a commercial activity regardless of whether there is an expectation of profit. What is the definition of a 'Commercial Electronic Message'? Yes Do direct messages sent to people via social media count as CEMs? - Social media feeds (i.e. Twitter & Facebook wall posts) - Websites / blogs - Two-way voice communication between individuals - Faxes and voice recordings sent to a telephone account (however salespersons should be aware of names on the National DNCL) What does the Canadian Anti-Spam Legislation (CASL) not apply to? - Obtain consent from the recipient - Identify yourself (full contact details including address) - Provide a means for the recipient to withdraw consent What are the requirements to sending a Commercial Email Message (CEM)? The recipient has opted in through an online or physical sign-up form (such as a newsletter, by phone, at the point of purchase or by responding to a contest). What is 'Express Consent' when referring to CEMs? No. Oral consent is acceptable but you may be asked to prove consent later. Can express consent be obtained in writing only? No. Consent must be obtained through an opt-in mechanism rather than an opt-out mechanism. A pre-checked box for consent is not permitted as this would assume consent where it was not intended. Can you use a check-box that is pre-checked to obtain consent to send CEMs? Not until the recipient withdraws their consent. How long after express consent is granted does it expire? Based on the brokerage or salesperson having a prior relationship with the recipient. What is 'Implied Consent' in relation to CEMs? - You or the brokerage have an existing business relationship with the recipient for the last 2 years - A recipient made an enquiry within the last 6 months - You have an existing non-business relationship with the recipient for the last 2 years (i.e. fellow members of a club, organization, etc.) - The recipient of a CEM has conspicuously published their email address online (on a website) or has disclosed their email address (i.e. via distribution of a business card) AND the content of the message relates to the recipient's role in an official business capacity, and the recipient did not state implicitly that they did not want to receive CEMs at that address When is it okay to send CEMs using implied consent by the recipient? - The referral must have been made by an individual who has an existing business relationship, non-business relationship, family relationship or personal relationship w/both the sender and recipient - The full name of the person making the referral and a statement that the CEM is being sent as a result of the referral must be included in the CEM - The CEM must contain the sender's identification information and an unsubscribe mechanism - You may only send 1 CEM. Any further CEMs will require consent from the recipient. What conditions must be met to send a CEM to a referral? - Identification of registrant - Identification of individuals - Identification of brokerage - Description of registrant * Same rules as advertising What sender information must be included in a CEM? A federal statute that aims to protect fair competition and efficiency in the Canadian marketplace and protect consumers against anti-competitive activities. Define the 'Competition Act' - Misleading advertising - Conspiracies - Price maintenance - Bid-rigging What does the Competition Act prohibit? Unlawful agreements between competitors to fix or increase prices, manipulate markets or in some way control output. (i.e. agreements to establish commission or other fees or amounts paid to co-operating brokerages). According to the Competition Act, what is a 'Conspiracy'? Involves a person attempting to influence prices either in an upward direction or by discouraging individuals who are offering lower prices. Also can be where a salespersons refuses to negotiate or deal with a competitor because of that competitor's pricing policy, commission structure or business model. (i.e. A salesperson does not show listings of another brokerage that only offers $1 commission to the co-operating brokerage. Under the Code of Ethics, registrants MUST inform clients and customers of all properties that meet their search criteria, regardless of the amount of commission offered by the listing brokerage. According to the Competition Act, what is a 'Price Maintenance'? An agreement in response to a call or request for bids or tenders in which one or more bidders agree not to submit a bid, or two or more bidders agree to submit pre-arranged bids. This is a criminal offence. (i.e. A real estate brokerage agrees to submit a bid to perform services at an unreasonably high rate so that another brokerage will be successful on this bid and so that the other brokerage will do the same for them at the next opportunity.) According to the Competition Act, what is a 'Bid-Rigging'? - Do not collude - Do not discriminate - Do not mislead What are the 3 best practices to ensure compliance with the Competition Act? No. This would be considered a violation of the Competition Act. You do not know what another brokerage charges unless they advertise it, and you do not need to know their business model. Is it acceptable to discuss your brokerage's commission structure with another registrant? - Negative publicity for the brokerage and yourself - Lost time - Criminal fines up to $25 million and civil fines up to $10 million What are some potential consequences / penalties if in contravention of Competition Act? Refers to the net increase in value of a capital property from the date the property was purchased or the valuation date of Dec. 22, 1971 (whichever is most recent), to the date the property is sold. Define 'Capital Gains' Any item that, if sold, would result in a capital gain or a capital loss (such as cottage, investment duplex, land, buildings, shares, bonds, funds and trust units). What is 'Capital Property'? Income a person earned from an activity undertaken for profit (such as income from a house painting or consulting business, or from rental income) but does not include salaries a person received from an employer. What is 'Business Income'? - With business income, the net income after deductive expenses is taxed. - With a capital gain, only 50% of the net proceeds is added to the income of the taxpayer and taxed at the appropriate tax rate. How are Capital Gains taxed differently than Business Income? - Intention (what was the intention of the taxpayer when they purchased the property?) - Relationship to the taxpayer's business (is the taxpayer living there or do they flip houses for a living?) - Frequency of transaction (how often a taxpayer engages in the sale of capital property) - Nature of transaction and assets (mortgages are often judged under this test) - Objects of the corporation (complicated and legal advice should be sought) What factors are used to determine if a gain is a capital gain or business income? No Does capital gains tax apply to the sale of a principal residence? A house, apartment in a duplex or apartment building or condominium, a cottage, a houseboat, a trailer or mobile home, or a share in a co-operative housing corporation, where a person usually lives. Define 'Principal Residence' Since the house was Andy's principal residence from , no taxation is applied to the capital gain during that time. However, any capital gain that accumulated between 2015 and 2020 would be taxed at 50% as it was no longer Andy's principal residence. Andy buys a house in 2010 and it's his principal residence until 2015 when Andy moves into his partner's condo and rents out his house. In 2020 Andy sells his house. How does capital gain taxation affect Andy during the sale of the house? 1 How many principal residences can a person have?