RECA Fundamentals Exam Questions And Answers Verified 100% Correct

RECA Fundamentals Exam Questions And Answers Verified 100% Correct Golden rule - ANSWER Do unto others as you would have them do unto you Real Estate Insurance Exchange (REIX) - ANSWER - provides financial protection - compensates consumers up to $35,000 - mandatory errors & omissions insurance + negligence - excludes injuries or death, transfers of title, commission/fees - $3,500 is the first deductible - $7,000 if second claim. - RECA collects premiums with licensing fees Tort Law - ANSWER Compensation for civil wrongs that result in harm - Negligent Tort - carelessness, failure to exercise reasonable care - Intentional Tort - assault, fraud, theft, defamation - strict liability Tort - the act itself, producting defective products, using hazardous materials Benefits of REIX - ANSWER - enhances the image of the profession - has the potential to save on insurance costs - The profession is active in managing the program and its risks Duty based approach to ethical decision making - ANSWER - individuals intentions or motives - belief in universal moral system of ethical reasoning - individuals should do the right thing because its the right thing to do Errors and Omissions Insurance - ANSWER real estate equivalent of malpractice coverage Comprehensive General Liability Insurance - ANSWER - broad coverage for claims against injury/damage - civil liability (a fall) - any damages or injuries - legal defense costs - does not cover issues related to real estate transactions Voluntary Broker Resolution Process (VBRP) - ANSWER - enables broker to take the lead in resolving complaints and disputes - prior to RECA + Formal courts - brokers confer with REIX before proceeding Privacy Law - ANSWER - Brokerages must designate a privacy officer to be accountable for compliance - must be consistent with the applicable privacy legislation Benefits of Voluntary Broker Resolution Process - ANSWER - avoids time and intrusion involved with RECA investigation - identifies deficient brokerage practices that need improvement - allows participation in the process to achieve acceptable resolution - opportunity to mend relationship with consumer Three components of broker leadership - ANSWER Authority, responsibility, and accountability Reactions to conflict - ANSWER Physical, Cognitive, Emotional Principles of Competition Act - ANSWER - Do not collude with competitors - do not discriminate against or refuse to do business with competitors - do not mislead the public through advertisement or representation Proceeds of Crime (Money Laundering) and Terrorist Financing Act - ANSWER - Federal act - specific measures to detect and deter money laundering - facilitates investigations - responds to threats posed by organized crime - fulfill international commitments to fight multi-national crime Financial Transactions and Reports Analysis Center of Canada (FINTRAC) - ANSWER - responsible for collection, analysis and disclosure of information - identifies lists of groups under their watch - brokers must report suspicious transactions Safeguards to protect personal information - ANSWER Administrative, Technological, Physical Confidential information - ANSWER includes both personal and business information - not readily available info, may have value Civil liability - ANSWER - private legal action between disputing parties - involves and plaintiff and defendant appearing in court - established by the courts at the conclusion of legal proceedings Types of Consent - ANSWER Express (most important) - given verbally or in writing Implied - does not specifically give, but volunteers personal information Opt-out - unless the individual takes action, can assume consent is given Legacy Information - ANSWER - personal information collected before application privacy legislation came into effect - considered to be collected with consent - may be used for a new purpose other than original purpose if new consent is obtained Disputes come from: - ANSWER Assumptions Omissions (non actions) Commissions - act that did not meet approval, creating issues ex. young couple in 55+ building Complaints and Disputes can - ANSWER - indicate need for improved policies/procedures - are associated with learning opportunities Types of Authority - ANSWER Express - written or verbal Implied - whatever needed to accomplish action Customary - widely accepted way of behaving or performing action General Obligations - ANSWER perform mandate, exercise care and skill Fiduciary obligations - ANSWER act in best interest Common Law - ANSWER Laws put in place by the courts