RECA Fundamentals Exam Study Guide Questions And Answers Verified 100% Correct

RECA Fundamentals Exam Study Guide Questions And Answers Verified 100% Correct How long is license valid if not registered with brokerage? - ANSWER 36 months Levels of Disclosure - ANSWER 1. other party represented by another brokerage 2. other party not represented 3. other party represented by same brokerage Designated Agency vs Common law - ANSWER Designated Agency - relationship with individual instead of brokerage - conflict of interest only if agent has an interest in property Common Law - agency relationship exists - conflict of interest extends to whole brokerage - must be disclosed Inducement vs incentives - ANSWER - Inducement is client specific - incentives must be offered by brokerage to everyone If industry professional withdraws from profession during disciplinary proceedings - ANSWER - RECA issues a news release - all disciplinary proceedings terminated - lifetime ban from all industry professions governed by RECA Advisory Notes - ANSWER Technical breach of legislation - ex. forgetting brokerage name on marketing Letters of Reprimand - ANSWER - where cases of conduct deserving sanction is less serious - agent has also received an advisory note Administrative penalties - ANSWER - actions breached a section of rules and deemed potentially serious Approaches to complaints agent agent - ANSWER - Advisory notes - technical breach - letter of reprimand - less serious, already received advisory note - Administrative penalty - potentially serious - hearings - severe in nature Records must be: - ANSWER - kept in Alberta - maintained in electronic form - kept by brokerage for 3 years - accessible to RECA for inspection To become licensed - ANSWER - must become registered with brokerage before one year. - must renew by September 30, each year Privacy legislation regarding client information - ANSWER - Personal Information Protection Act (PIPA) - Provincial legislation - Personal Information protection and Electronic Documents Act (PIPEDA) - federal legislation Personal Ethics - ANSWER Morals - held by individual Ethics - Standard of Conduct (values/beliefs that guide actions) Professional Standards - Rules and Regulations Ethical Decision Making - ANSWER 1. Recognize 2. Analyze 3. Test 3A. Seek assistance if needed 4. Implement 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