Fundamentals Of Real Estate - Unit 2 (17% - 25Q)

According to the Rules, which of the following identifies the classes of licenses for real estate brokers?

Associate, Associate Broker, Broker, Brokerage.

The Rules require an individual trading in real estate to hold an authorization with RECA unless they are exempt. Which of the following is NOT exempt?

A full-time assistant that holds open houses for a real estate professional.

Which of the following statements is a component of the licensing process?

Determining an individuals suitability to be licensed + Determining an individuals eligibility to be licensed.

Which of the following statements describe the written disclosures required by real estate professionals when they are involved in a personal trade with a party represented by another brokerage?

Disclose that they are authorized under the Act to trade in real estate + Disclose the name of the brokerage with which they are registered.

What color will the indicator light be if Sam is authorized to trade in real estate?

Green

Once Sam has completed the Real Estate Associates Program (REAP), what is the period of time that he has to become registered with a licensed brokerage in Alberta?

He must be registered within one year of passing the last Practice course exam.

According to the Rules, which of the following statements is an industry professional prohibition?

Making representations that mislead or deceive buyers or sellers.

Amendments

When industry professionals participate in discussing proposed "amendments" to the Rules, they assist RECA in responding to issues affecting the industry.

Administer

Part of RECAs mandate is to "administer" the Act, Rules, Regulations and Bylaws.

If Sam does not renew his registration, how long does he have to become re-registered before he will have to provide RECA with a new CCRC?

1 Year

If Sam ceases to be registered with a brokerage, how long is his license valid for?

36 Months

For RECAs purposes, how long from the date of issue is a Certified Criminal Record Check valid?

6 Months

What score must Sam obtain on each final exam to successfully complete the Real Estate Associates Program?

70%

Which of the following statements is an example of an appropriate incentive?

A brokerage advertises that all new listing contracts will be entered into a draw for a patio BBQ.

Which of the following statements is an example of an appropriate incentive?

A brokerage offers the use of its moving van to attract new business.

According to the Rules, which of the following responsibilities are required of all industry professionals?

Act honestly and provide competent service + Ensure their role relationship is understood by clients + Cooperate with RECA regarding requests for information + Disclose any conflicts of interests as a result of their services.

A real estate professionals authorization to trade in real estate expired on September 30. However, the real estate professional continued to show properties on behalf of a property management company for which she received compensation. Given her actions breached a section of the Rules and were deemed to be potentially serious, which of the following disciplinary outcomes would the real estate professional receive?

Administrative Penalty.

If Sam is concerned about a prior situation or event that may affect his application for licensing, what may he request from RECA prior to completing the education requirements?

Advance Suitability Review

Which of the following Professional Conduct Review outcomes is issued as a practice guideline for a technical breach of the legislation?

Advisory Note.

Which of the following statements is correct regarding the authorization requirements to trade in real estate?

An individual must make application for registration through a licensed brokerage + An individual must renew his/her registration by September 30th each year + An individual must complete the education requirements as set forth by RECA.

Which of the following situations describes when an industry professional must immediately notify RECAs Executive Director?

An industry professional is charged with driving under the influence.

Which of the following describes the class of license individuals hold who are new to the real estate profession in Alberta?

Associate

Which of the following individuals hold the qualifications of a real estate broker but is not authorized to operate a brokerage?

Associate Broker

What are the four classes of licenses for real estate brokers?

Associate, Associate Broker, Broker, Brokerage

Which of the following is an authorization outcome that the Executive Director may decide for existing real estate professionals upon their renewal registration?

Authorization refusal + Authorization suspension + Authorization cancellation

If Sam wants to trade in real estate once he has completed the Real Estate Associates Program, what is his next step?

Become employed with a licensed brokerage in Alberta.

Input

Before implementing changes to the Rules, RECA requests "input" from industry professionals.

Which of the following individuals is authorized by RECA to operate and manage a real estate brokerage?

Broker

Which of the following best describes the legal entity that is licensed and registered by RECA to trade in real estate?

Brokerage

With respect to brokerage record keeping, which of the following statements is correct?

Brokerage records must be kept in Alberta + Brokerage records may be maintained in electronic form + Brokerage records must be kept by the brokerage for 3 years + Brokerage records must be accessible to RECA for inspection.

What should Sam do to confirm his authorization to trade in real estate?

Check their MyRECA account or use the Find a Professional tool on RECAs website.

A real estate professional wishes to be authorized again within one year of ceasing to be registered with a brokerage. What requirements will the industry professional need to complete to be authorized to trade in real estate?

Complete a Registration - Re-Registration online application + Have the broker submit the online application.

Which of the following statements best describes the term "conduct deserving of sanction"?

Conduct that breaches the Act, Rules, Regulations or Bylaws + Conduct that falls below any industry standard + Conduct that undermines public confidence in the industry.

A real estate professional who is representing a seller has a personal interest in the property. According to the Rules, which of the following responsibilities must the real estate professional carry out if he wishes to buy the property?

Disclose the conflict of interest.

Which of the following disclosures are required by a brokerage when one of its real estate professionals wants to purchase a property that the brokerage has listed for sale?

Disclose to the client the name of the real estate professional + Disclose to the client the existence of a conflict of interest + Disclose to the client the opportunity to seek independent advice.

Carl, a real estate professional, is registered with Prime Plan Real Estate Ltd. He has listed his brother's house for sale with the brokerage. A real estate professional with another brokerage contacts Carl and asks to preview the property as she has a potential buyer. What level of disclosure must Carl provide?

Disclosure Level 1

Mary, a real estate professional registered with ABC Real Estate Brokerage has agreed to purchase her neighbours ranch. The seller of the property is not represented by a real estate professional. What level of disclosure does Mary need to provide?

Disclosure Level 2

Stan, a real estate professional registered with McAgent Real Estate Brokerage has just listed his commercial property for lease with his brokerage. Jim, another real estate professional registered with the same brokerage tells Stan that he has a client interested in leasing the property. What level of disclosure is required in this situation?

Disclosure Level 3

Once Sam is authorized to trade in real estate, when will his registration expire?

Each year on September 30th

Pursuant to the Rules, which of the following is a result of an industry professionals failure to immediately notify the Executive Director of changes to information provided in support of a license application?

Executive Director may refer the matter for a Professional Conduct Review + Executive Director may suspend the industry professionals license + Executive Director may cancel the industry professionals license.

Apart from completing the Real Estate Career Information Session, what are the courses that Sam must take to complete the Real Estate Associates Program successfully?

Fundamentals of Real Estate and at least one Practice course.

According to the Rules, which of the following statements apply if an industry professional whose conduct is subject to disciplinary proceedings make application to withdraw from the profession?

If the application is approved, RECA issues a news release + If the application is approved, all disciplinary proceedings are terminated + If the application is approved, it is a lifetime ban from all industry professions governed by RECA.

Which of the following statements best describes the concept of scalable enforcement under RECAs Professional Conduct Review Program?

Industry professionals will receive sanctions that can and will escalate upon future occurrences of the same activity.

Kevin has completed RECAs education requirements to become a real estate associate and is planning to register with a specific brokerage. To get a jump on business, Kevin starts to promote himself as a real estate associate and contacts prospective buyers and sellers. Which of the following statements is correct regarding Kevin's promotional efforts?

Kevin may not promote himself until such time as he is registered with the brokerage.

Which of the following terms best describes jurisdictions that have entered into mutual recognition agreements between them to allow currently authorized professionals to apply for a comparable class of license?

Labour mobility

What are the two components that will provide Sam with his authorization to trade in real estate?

License and Registration Certificate

Services

Part of RECAs mandate is to provide "services" that enhance and improve the industry.

Michael, a real estate professional with Prime Plus Real Estate Brokerage Ltd. has an assistant, Marie, who used to be an industry professional. As Michael is very busy, Marie prepares promotional information for upcoming open houses that Michael will host. According to the Rules related to support personnel and assistants, choose the best answer regarding the actions Marie is performing.

Marie can prepare the promotional information if Michael approves all the work she completes.

Melanie is an industry professional who is licensed and registered in both real estate and mortgage brokerage. She is disciplined by the he local real estate board on a matter relating to a real estate trade. According to the Rules, what action should Melanie take?

Melanie must immediately notify the Executive Director of the discipline.

To become employed with a brokerage, Sam will need to complete and submit which of the following to RECA?

New License & Registration application.

According to the Act, industry professionals are required to cooperate with RECA Professional Conduct Review Officers. Which of the following statements demonstrates non-cooperation by an industry professional?

Not being truthful with the Professional Conduct Review Officer + Withholding or destroying documents in connection with a Professional Conduct Review + Failing to respond to Professional Conduct Review Officers in a timely manner.

Consumers

Part of RECAs mandate includes the protection of "consumers"

Industry Standards

Part of RECAs mandate includes the setting and enforcement of "industry standards" of conduct.

Mortgage Fraud

Part of RECAs mandate includes the suppression of "mortgage fraud"

Which privacy legislation affects how Alberta real estate professionals handle client information?

Personal Information Protection Act + Personal Informstion Protection and Electronic Documents Act.

Communicates

RECA "communicates" with the industries it governs through email and social media.

Governs

RECA "governs" the real estate, mortgage brokerage and real estate appraisal industries.

Electronic Publications

RECA assists industry professionals in keeping current with the Act, Rules and Regulations through "electronic publications"

Which of the following statements is correct regarding the Real Estate Act Rules?

RECA posts the most current version of the Rules on its website + The Rules refer to the standards of practice for industry professionals + When contemplating amendments to the Rules, RECA consults with industry professionals and stakeholders.

Information Bulletins

RECA produces "information bulletins" to help industry professionals apply the Rules to their practice.

In the year following Sam's registration with a brokerage, prior to renewing his license he has to complete certain education requirements. How does RECA refer to this requirement?

Re-licensing Education Program

To which of the following groups does the obligation to keep client information confidential apply?

Real estate brokerage + Staff employed by the brokerage + Real estate professionals registered with the brokerage.

Which of the following applies to the payment of referral fees?

Real estate brokerages may be paid referral fees by mortgage brokerages.

Rob, a real estate professional with Prime Plus Real Estate Brokerage Ltd. is approached by Sylvia, who has a work colleague that is looking to purchase a new house. Sylvia asks Rob to pay her a finders fee for making the connection if he is successful in arranging a purchase. How can Rob pay Sylvia a referral?

Rob may request that the brokerage pay Sylvia a referral fee.

Mindy, a real estate professional with Prime Plus Real Estate Brokerage Ltd. has a home office located over 20km away from the brokerage office. According to the Rules, which statement is correct regarding Mindys responsibilities as a real estate professional?

She is required to keep the broker informed of activities that she carries out on behalf of the brokerage + She is required to use the brokerage trade name in all of her advertisements and promotional material + She is required to provide all trade-related records and documents to the brokerage in a timely manner.

Jan, a real estate professional has been asked by a buyer who she is representing for the name of a lawyer to help with the legal aspects of the transaction. Jan provides the name of 3 lawyers, 1 of whom is her cousin. According to the Rules, which of the following requirements must Jan fulfill?

She must disclose the relationship that exists betwen her and 1 of the referrals + She must disclose the potential for her to receive a referral fee or other compensation.

Which of the following situations may prompt the Executive Director to suspend or cancel a real estate professionals license?

Swearing a false affidavit + Providing false or misleading information + Failing to maintain appropriate insurance coverage

Bylaws

The "bylaws" provide for the operations and administration of the Council.

Provincial Legislature

The "provincial legislature" can make amendments to the Act.

Service Alberta

The Act is the responsibility of the Minister of "Service Alberta".

Which of the following statements is applicable to the Executive Directors decision to suspend an industry professionals license?

The Executive Director will determine the length of the suspension + The Executive Director will serve the decision on the industry professional + The Executive Director will consider the evidence when making the decision.

Standards Of Practice

The Rules contain the "standards of practice" for all industry professionals.

Industry Professional

The Rules relate to the day-to-day practice of "industry professionals"

Which of the following may RECA amend from time to time?

The Rules.

According to the Rules, which of the following statements best defines a referral?

The act of recommending or directing a person for service, assistance or business to another person or business.

Which of the following statements is correct regarding a real estate brokerage that operates under common law agency?

The agency relationship between a client and the brokerage extends to all real estate professionals of the brokerage + Any client information obtained is attributed to all real estate professionals of the brokerage + Real estate professionals of the brokerage must inform the public of the type of agency practiced.

The Rules set out the circumstances when the Executive Director may refuse to issue a license or registration. Which of the following statements describes such a circumstance?

The applicant is not of good character + It would harm the integrity of the industry + The applicant has provided false or misleading information.

Which of the following statements is correct regarding brokerage record keeping?

The brokerage should have a records management strategy and system.

Which of the following statements describe the details of an incentive?

The incentive must be offered by all real estate professionals registered with the brokerage + The incentive must be available to all members of the public to attract business to the brokerage + The incentive is provided by the brokerage and paid for by the brokerage.

Which of the following statements identifies the circumstances under which an individual is NOT eligible for licensing?

The individual is not at least 18 years of age + The individual fails to obtain the appropriate insurance coverage + The individual fails to submit the required fees, levies or premiums.

Which of the following statements is correct regarding a suitability review for licensing by the Executive Director where the applicant has a criminal record?

The nature and seriousness of the crimes would be considered + The efforts taken by the applicant to rehabilitate him or herself would be considered.

Which of the following statements represents an issue or potential issue for a real estate professional involved in a personal trade?

The real estate professional is a party to the transaction + The real estate professional is considered to be in a conflict of interest + The real estate professional has a vested interest in the transaction outcome.

The Rules require industry professionals to avoid and disclose conflicts of interest. Which of the following statements demonstrates a conflict of interest on the part of a real estate professional?

The real estate professional is a party to, or has an interest in the transaction + The real estate professional represents more than 1 party to the transaction + The real estate professional receives a secret compensation without the client's knowledge.

Which of the following statements apply when the Executive Director undertakes the process to determine if the license of a real estate professional should be continued, suspended, or cancelled?

The real estate professional is notified that evidence gathering has begun + The real estate professional is given the opportunity to be heard on the matter + The real estate professional is provided disclosure of all relevant information.

According to the Rules, which of the following statements describes an element that must be incorporated into written service agreements?

The services to be provided by the brokerage + The responsibilities of each party to the agreement + The names of the parties to the agreement.

Real estate professionals may need to complete an education requirement in order to renew their registration with their brokerage. Which of the following statements is NOT correct regarding this requirement?

They can defer the completion of the education requirement with their broker's approval.

When the license of a real estate brokerage is suspended, what actions must real estate professionals who are registered with the brokerage take?

They must cease to trade in real estate.

What is the process that real estate professionals should carry out regarding the renewal of their registration with the brokerage?

They must complete the Associate/Associate Broker Application for Registration by the deadline + They should confirm their authorization status after the deadline + They must complete any re-licensing education requirements by the deadline.

Before real estate professionals receive referral fees, what is required of them?

They must have the individuals written consent to disclose his/her personal information + They must disclose to the individual that they may be paid a fee for making the referral + They must ensure that the payment/receipt of the referral fee is through the brokerage.

Prime Plus Real Estate Brokerage Ltd. advertises on its website that, "We will pay the real estate appraisal fee for sellers who list their property within the next 30 days!" Which statement best describes this advertisement?

This ad is an example of an incentive.

Which of the following is NOT a purpose of RECA?

To amend the Act as determined by Council.

According to the Rules, which of the following is NOT a responsibility of real estate professionals?

To delegate all administrative tasks to an assistant of the brokerage.

What are the objectives of RECAs Professional Conduct Review procedures?

To gather all the relevant information + To treat parties fairly and courteously + To gather the information efficiently.

Which of the following is NOT a responsibility of a real estate professional?

To misrepresent facts or information.

Which of the following is NOT a responsibility of real estate professionals?

To receive referral fees directly from other industry professionals.

The Rules require real estate brokerages to retain all its transactions records. Which statement best describes this requirement as it relates to real estate professionals?

Transactions records can include such items as written disclosures and specific property advertising.

Real Estate Act

Under the "Real Estate Act", Council has the authority to enact and amend the Rules.

On June 15th, Cory successfully completed the final education exam required by RECA to become licensed as a real estate professional. How long does he have to become registered with a real estate brokerage before the completion of the education requirement is no longer valid?

Until June 14 the following year.

Dominic, a real estate associate with XYZ Real Estate Brokers Inc, plans to return to school in September to complete his university degree. As such, he will not be renewing his registration with the brokerage. How long does he have to become registered again with a brokerage before his license expires?

Within 36 months from the last date of his registration.

According to the Rules, which of the following statements is correct regarding written service agreements?

Written service agreements must clearly indicate the names of all parties to the agreement.