RECA RESIDENTIAL UNIT 1 -9 EXAM WITH 1765
QUESTIONS WITH DETAILED VERIFIED ANSWERS AND
RATIONALE BRAND NEW!! /A+ GRADE ASSURED
Should a REP alter property information that the municipality has auto-populated
into the listing service or property database? - ANS... -No. Do not alter property
information that the municipality has auto-populated into the listing service or
property database. If you believe the information is incorrect or contradictory to
the seller's information, advice the seller that they can take the matter up with the
municipality
3 Types of renovations - ANS... -Updating, upgrading and additions
Renovations - The difference between updating and upgrading - ANS... -Updating
is improving the residence by modernizing its finishes which are often cosmetic in
nature; like re-doing older kitchen cabinets, or replacing older carpet for new.
Upgrading includes replacing existing features or by adding new features; like
adding a high-efficiency furnace, or replacing old carpet with new hardwood or
adding an air purification system when none existed before.
If there are updates, upgrades or additions to the property, should the details and
the year they were completed be listed and retained in the client's brokerage file? -
ANS... -Yes
When (x5) must a new application for a building permit be obtained? - ANS... -1.
Build an addition to the existing residence 2. Demolish or relocate the existing
residence 3. Complete major alterations or renovations to the existing residence 4.
Build a supplemental structure for occupation (eg guest house) 5. Build a
supplemental structure equal or greater than a specified size (eg garage)
Which Act establishes the specific requirements for each type of permit? - ANS... -
Safety Codes Act
In general when are permits required? - ANS... -In general they must be obtained
when the work may risk the health or safety of individuals during or after the work
is completed.
,Typically permits must be obtained before work starts on any of the following (x7)
- ANS... -Fire, Gas, Electrical, plumbing, building demolition or relocation,
building alteration, renovation or addition, Private sewage disposal system
Where must requests for permits be submitted? - ANS... -Requests for permits
must be submitted to the accredited municipal authority, agencies contracted by the
municipality, or the government of Alberta. Accreditation signifies that the
municipality is authorized by the safety Codes Counsel to administer the Safety
Codes Act and its related legislation.
Do permit guarantee the quality of work or materials? - ANS... -No, however all
permits include conditions stating what must be done regarding the proposed work.
5 benefits of obtaining building permits (words) - ANS... -1. Review 2. Inspect 3.
Record 4. Insurance 5. Resale
5 benefits of obtaining building permits (words and explanation) - ANS... -1.
Review (Certified safety codes officer does a thorough review of the proposed
work, which can prevent costly mistakes/identify non-compliance prior to
commencement of construction 2. Inspect (Certified safety codes officer inspects
confirming that all is up to code 3. Record (owner receives a record that all is up to
code) 4. Insurance (helps to receive property insurance coverage. lack of may
jeopardize insurance coverage 5. Resale (buyer/buyer's agent may ask if work done
has completed with the application permit. The seller's ability to produce the
appropriate documentation could help to facilitate the sale of the property
Why is not getting necessary permits bad? - ANS... -Failure to obtain may result in
construction delays, health and safety issues, legal action and additional fees. Work
complete on a building without the required permits can jeopardize the insurability
of a property and its resale.
What happens if a property's insurability is jeopardized? - ANS... -It can also
jeopardize the ability of the borrower (ie buyer for new financing, seller for re-
financing) to secure a mortgage on the property. lenders require proof of property
insurance as part of the lending process as it protects their financial interest in the
property. In addition, the respective municipality or the Government of Alberta
may require any work lacking the proper permit to be removed or demolished.
new properties can be referred to as "New Residential properties" what should
"old" properties be referred to as? - ANS... -Resale residential properties
,True or False - New Residential properties are typically subject to the Goods and
Services Tax (GST) - ANS... -True. REPs should make sure the new homebuyers
are aware of this fact
Resale Properties can be broadly categorized into which 3 categories? - ANS... -
New Resale Properties, Older Resale Properties and Heritage Resale Properties
How old are Newer Resale Properties? - ANS... -generally less than 10 years old.
Although some consider newer properties to be up to 15 years of age
Heritage Resale Properties may also be referred to as... - ANS... -character homes
Who designates places and properties of historic significance to the community or
province? - ANS... -The Historical Resources Act or Alberta empowers the
Minister of Culture to designate places and properties of historic significance.
is the order of designating a property as a historic resource registered on its
certificate of title? - ANS... -Yes
What are owners of Provincial Historic Resources obligated to be - ANS... -under
the Historic Resources Act owners of Provincial Historic Resources (covering
various property times, including residential properties that have historic
importance for their architectural interest or association with an important person
or significant event), are obligated to be good stewards of their historic properties.
Where may owners of historic properties possibly be eligible for conservation
grants? - ANS... -from the Alberta Historic Resources Foundation. These
properties may be altered for valid reasons provided such actions do not disturb or
destroy the property's historic character. In addition no person can destroy, disturb,
alter, restore, repair the property, or remove any historic objects from the property
without written approval from the Minister of Culture.
3 fundamental principles of fiduciary duty. AKA the 3 principles that give rise to
fiduciary duties in a representation relationship: - ANS... -Trust and Confidence,
Best Interests, Loyalty
, 8 General Obligations of REPs - ANS... -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 - ANS... -Provide Utmost Loyalty, Not make secret
profits, Handle Confident Information Properly, To Account, Avoid conflicts of
interest, Disclose conflicts of interest.
"To Account" meaning - ANS... -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 - ANS... -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 - ANS... -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
2 options if REP cannot provide competent service to a client - ANS... -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. - ANS... -Professional Standards, Professional Norms and Practices, Expert
Testimony
"Expert Testimony" Meaning - ANS... -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" - ANS... -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.
QUESTIONS WITH DETAILED VERIFIED ANSWERS AND
RATIONALE BRAND NEW!! /A+ GRADE ASSURED
Should a REP alter property information that the municipality has auto-populated
into the listing service or property database? - ANS... -No. Do not alter property
information that the municipality has auto-populated into the listing service or
property database. If you believe the information is incorrect or contradictory to
the seller's information, advice the seller that they can take the matter up with the
municipality
3 Types of renovations - ANS... -Updating, upgrading and additions
Renovations - The difference between updating and upgrading - ANS... -Updating
is improving the residence by modernizing its finishes which are often cosmetic in
nature; like re-doing older kitchen cabinets, or replacing older carpet for new.
Upgrading includes replacing existing features or by adding new features; like
adding a high-efficiency furnace, or replacing old carpet with new hardwood or
adding an air purification system when none existed before.
If there are updates, upgrades or additions to the property, should the details and
the year they were completed be listed and retained in the client's brokerage file? -
ANS... -Yes
When (x5) must a new application for a building permit be obtained? - ANS... -1.
Build an addition to the existing residence 2. Demolish or relocate the existing
residence 3. Complete major alterations or renovations to the existing residence 4.
Build a supplemental structure for occupation (eg guest house) 5. Build a
supplemental structure equal or greater than a specified size (eg garage)
Which Act establishes the specific requirements for each type of permit? - ANS... -
Safety Codes Act
In general when are permits required? - ANS... -In general they must be obtained
when the work may risk the health or safety of individuals during or after the work
is completed.
,Typically permits must be obtained before work starts on any of the following (x7)
- ANS... -Fire, Gas, Electrical, plumbing, building demolition or relocation,
building alteration, renovation or addition, Private sewage disposal system
Where must requests for permits be submitted? - ANS... -Requests for permits
must be submitted to the accredited municipal authority, agencies contracted by the
municipality, or the government of Alberta. Accreditation signifies that the
municipality is authorized by the safety Codes Counsel to administer the Safety
Codes Act and its related legislation.
Do permit guarantee the quality of work or materials? - ANS... -No, however all
permits include conditions stating what must be done regarding the proposed work.
5 benefits of obtaining building permits (words) - ANS... -1. Review 2. Inspect 3.
Record 4. Insurance 5. Resale
5 benefits of obtaining building permits (words and explanation) - ANS... -1.
Review (Certified safety codes officer does a thorough review of the proposed
work, which can prevent costly mistakes/identify non-compliance prior to
commencement of construction 2. Inspect (Certified safety codes officer inspects
confirming that all is up to code 3. Record (owner receives a record that all is up to
code) 4. Insurance (helps to receive property insurance coverage. lack of may
jeopardize insurance coverage 5. Resale (buyer/buyer's agent may ask if work done
has completed with the application permit. The seller's ability to produce the
appropriate documentation could help to facilitate the sale of the property
Why is not getting necessary permits bad? - ANS... -Failure to obtain may result in
construction delays, health and safety issues, legal action and additional fees. Work
complete on a building without the required permits can jeopardize the insurability
of a property and its resale.
What happens if a property's insurability is jeopardized? - ANS... -It can also
jeopardize the ability of the borrower (ie buyer for new financing, seller for re-
financing) to secure a mortgage on the property. lenders require proof of property
insurance as part of the lending process as it protects their financial interest in the
property. In addition, the respective municipality or the Government of Alberta
may require any work lacking the proper permit to be removed or demolished.
new properties can be referred to as "New Residential properties" what should
"old" properties be referred to as? - ANS... -Resale residential properties
,True or False - New Residential properties are typically subject to the Goods and
Services Tax (GST) - ANS... -True. REPs should make sure the new homebuyers
are aware of this fact
Resale Properties can be broadly categorized into which 3 categories? - ANS... -
New Resale Properties, Older Resale Properties and Heritage Resale Properties
How old are Newer Resale Properties? - ANS... -generally less than 10 years old.
Although some consider newer properties to be up to 15 years of age
Heritage Resale Properties may also be referred to as... - ANS... -character homes
Who designates places and properties of historic significance to the community or
province? - ANS... -The Historical Resources Act or Alberta empowers the
Minister of Culture to designate places and properties of historic significance.
is the order of designating a property as a historic resource registered on its
certificate of title? - ANS... -Yes
What are owners of Provincial Historic Resources obligated to be - ANS... -under
the Historic Resources Act owners of Provincial Historic Resources (covering
various property times, including residential properties that have historic
importance for their architectural interest or association with an important person
or significant event), are obligated to be good stewards of their historic properties.
Where may owners of historic properties possibly be eligible for conservation
grants? - ANS... -from the Alberta Historic Resources Foundation. These
properties may be altered for valid reasons provided such actions do not disturb or
destroy the property's historic character. In addition no person can destroy, disturb,
alter, restore, repair the property, or remove any historic objects from the property
without written approval from the Minister of Culture.
3 fundamental principles of fiduciary duty. AKA the 3 principles that give rise to
fiduciary duties in a representation relationship: - ANS... -Trust and Confidence,
Best Interests, Loyalty
, 8 General Obligations of REPs - ANS... -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 - ANS... -Provide Utmost Loyalty, Not make secret
profits, Handle Confident Information Properly, To Account, Avoid conflicts of
interest, Disclose conflicts of interest.
"To Account" meaning - ANS... -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 - ANS... -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 - ANS... -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
2 options if REP cannot provide competent service to a client - ANS... -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. - ANS... -Professional Standards, Professional Norms and Practices, Expert
Testimony
"Expert Testimony" Meaning - ANS... -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" - ANS... -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.
