RECA RESIDENTIAL EXAM UNIT 1 ACTUAL EXAM
120 REAL QUESTIONS AND DETAILED ANSWERS
AGRADE LATEST 2024 VERIFIED.
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
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
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.
120 REAL QUESTIONS AND DETAILED ANSWERS
AGRADE LATEST 2024 VERIFIED.
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
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
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.
