RECA fundamentals study guide| Complete Questions and Answers, 100% Correct| A+ Rated Solu, Exams of Real Estate Management

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RECA fundamentals study guide| Complete Questions and Answers, 100% Correct| A+ Rated Solution guide| Latest 2024 duty-based ethics Individual is expected to do the right thing cause it's the right thing to do, regardless of outcome utalitarian ethics Sells the optimal result for the greatest number of people Advisory note Punishment for a technical breach Administrative penalty/ fine One or two potentially serious infraction would cause this punishment Ratification- acting without authority or in excess of authority Implication- advice outside of objective These two ways of creating a representation relationship should not be done in real estate By Estoppel This representation relationship arises when a principal acts in a way that leads a third party to believe an agent has been given authority when in actuality the agent hasn't consented or even knows about it By operation of law This type of representation relationship is created when someone takes action to save a property or person from imminent danger/ damages Ethics Voluntary set of rules and guiding principles an individual uses as their moral compass. Standard of conduct adopted and practiced within a culture or society li Morals A set of beliefs held by an individual and founded on fundamental principles of right and wrong. Ex. Religious Tort law What area of law deals with civil wrong doings for which the courts may grant a remedy. ( harm to a person or damage to property) 35,000$ Max the real estate assurance fund may pay per claimant for damages or losses to the services of a real estate professional Purpose of Real Estate Assurance Fund Compensate consumers who have received court judgement against a real estate professional for fraud or breach of trust Real estate insurance exchange REIX This act prevents non Canadians from buying significant amounts of prime land Personal information Refers to information that makes an individual identifiable FINTRAC Real Estate brokerages must report suspicious transactions to which organization Express Implied Opt-out Types of consent Guardian, Cause they're not entitled to make financial decisions regarding land Makes decisions like healthcare, living arrangements, diet, dress. And they're not on title search why? Physical Emotional Cognitive Reactions associated with conflicts or disputes Authority Responsibility Accountability In terms of brokerage what 3 components of leadership relate to the broker Negotiator Brokers who use VBRP typically have experience in which role Assumptions Omissions - non act Commissions- over act Frequent causes of conflicts and disputes 3500$ 7000$ First claim with REIX Second claim within 3 years if first 40 days How many days does broker have to reach resolution in VBRP Do not collude Do not discriminate Do not mislead public through advertising 3 basic principles of competition act Written service agreement What do you use if a customer chooses a representation relationship therefore being a client Customer acknowledgment form What do you use if consumer chooses a non-representation relationship therefore being a customer Statue law A law or act passed by either government provincial or federal Assets = Liabilities + Equity In regards to condo financial statements the balance sheet formula is Income Statement Balance sheet Cash flow statement Types of Financial statements for condo corporations Post tension cables Construction method that reinforces concrete Info found on estoppel certificate Monthly contributions assessed for the particular unit 2 Upon new creation Reserve fund study must be done within how many years Within 15 months How frequent must condo corporation hold annual general meeting 1st degree relative A spouse, or children ate considered what degree of relative 3rd degree relative First cousins, great grandparents, great grandchildren are what degree of relative related to conflicts 2nd degree relative Grandparent, aunt, nephew, half-sibling, step sibling is what degree of relative related to conflicts Standard of care Is higher when representing clients over customer Property management Which service provided to a client is the highest standard of care By agreement By revocation By operation of law Ways to terminate representation relationship Lawful revocation When principal or agent fails to fulfill their responsibilities to the other party Unlawful Revocation When principal or agent terminate representation relationship even though the responsibilities have been fulfilled Competing Opposing Brokerage Conflicts of interest arise in 3 types of circumstances what are they Direct Indirect When referring to conflicts of interest the Brokerage interests can be either Real conflict of interest An actual conflict between interests of the client and the brokerage apparent conflict of interest Conflict between the client and real estate professional or brokerage is perceived Nope Does a real estate professional have general obligations or fiduciary duties to a customer Mandate Authorization to act in a particular way Implied If given express authority they have _________ authority. All necessary actions to complete express authority. Capacity to contract Capacity to delegate Capacity to incur expenses Capacities for which an agent must have express authority from a principal to act. (Limits on authority) Some general obligations What responsibilities do real estate professionals owe customers Non- exclusive representation relationship A relationship that allows multiple brokerages to act on behalf of an individual client Written agreement In real estate how are representation relationships typically established? Customer If an consumer enters into a non-representation relationship they'll be treated as a ? To the buyer- material latent defects To the seller- buyers ability to purchase What must a transaction facilitator disclose the the clients As soon as confidential information is rec What type of contact condition do we use in Alberta for real estate purchase contracts Monetary damages Quantum Meruit Specific performance Injunction Remedies for breach of contract Specific performance Where damages are inadequate courts may make the party carry out their promise injunction Contractural promise was to refrain from doing something, so this may be awarded to restrain the offending party form doing that act Bilateral Contract It specifies one party's duty to act in exchange for another party's duty to act Quantum Meruit Seller decides not to sell anymore so brokerage may be entitled to recover advertising costs Frustration Type of termination or discharge of contract where the house catches fire or it's destroyed making it impossible to fulfill Voidable Contract One party challenges the contract that's lacking one or more essential elements Real Property Refers to land, real estate and property rights Tenancy in common In this type of real property ownership owners can have unequal shares, can be willed, involves two or more property owners Joint Tenancy In this type of real property ownership if one dies the shares go to the surviving owners and all shares are equal and 4 conditions must be present Time, title, interest, possession. If any are absent it changes to tenancy in common. Most common for married couples. Condo fees Property taxes What encumbrances take priority over the mortgage Meridians Longitudinal lines running north an south 24 miles apart Ranges Longitudinal lines that run between meridians 6 miles apart Townships East and west lines running 6 miles apart numbered 1 at southern Alberta and 126 at northern Alberta Sections Townships are divided into Mirror principle This principle means that the current certificate of title accurately shows the current facts of the property Curtain Principle This principle contains all info about the title; current interests and past interests Insurance principle This principle means that the government provides compensation for any losses caused by errors or fraud with title Torrens System Land conveyance system used for land ownership and land transfer, governed by Land Titles Act Monthly periodic tenancy Tenant must give 1 month notice to landlord to terminate periodic tenancy Yearly periodic tenancy Tenant must give 60 days notice to landlord to terminate periodic tenancy Monthly Right to lease Sell Use Giveaway Retain Which rights are included in real property ownership bundle of right so Incentive Anything advertised to a person or the public for the purpose of attracting business to the brokerage. Promise, good, service, game of chance or contest. Inducement Anything offered by the brokerage to a specific person who is a party to a specific real estate trade with intent to persuade or cause them to enter into such a transaction Certificate of Title Document that records the information about the land such as legal land description, municipal description, ownership, and registered internists Land The ground and that which is beneath it and above it Physical Economic Political/ govt Social What forces affect property values Direct Comparison Income approach Cost approach Different types of approaches used by real estate appraisers Comparative Market Analysis Income analysis Cost analysis Types of property analysis that contribute to property valuation Income analysis This type of property valuation report heavily relies on accurate record keeping and examines revenue/ expenses associated with the property, typically used in commercial real estate Cost Analysis This type of property valuation analysis relies on a solid in depth cost of construction and ability to calculate depreciation Comparative Market Analysis (CMA) This type of property valuation analysis compares recent sales of similar properties. Used in residential legal permissibility Physical possibility Financial feasibility Maximally productive Key criteria for highest and best use Contract kiting In this type of mortgage fraud there's two purchase contracts and the lower one is given to the financial institute Mortgagee A lender in a mortgage loan transaction Mortgagor A borrower in a mortgage loan transaction High ratio mortgage Occurs when the loan amount exceeds 80% of the property value or sale price whichever is less Production order A formal written direction specifying that a party with relevant documents produce those documents for the purpose of a professional conduct review Guarantor A person bound by promise to pay a debt or perform an obligation of another individual Indefensibility An estate or right in the land that can't be defeated, revoked or made void Letter of Reprimand Least severe form of discipline following a professional conduct review Patent defect A physical deficiency in a property that is visible through property inspection real and substantial connection Legal test under common law that uses a set of connecting factors for determining the jurisdiction over a certain claim Real Estate Act Alberta legislation regulating real estate, mortgage brokerage and real estate appraisers The Act Bylaws Guidelines adopted by council for its governance and administrative functions The Act regulations Amendments or interpretations to sections of the act made by minister or lieutenant governor in council The Act Rules Standards of practice for industry professionals amended by council Strata plan A plan defining boundaries and subdividing volumetric space into (layered space) substantial interest Ownership in real estate of more then 25% Tort An activity either intentional or non intentional by a person that results in wrong being committed a against another person. May be personal injury, damage to reputation or property Voluntary broker resolution process A process that enables brokers to resolve consumer complaints and disputes Real estate Unimproved or raw land plus any improvements that are permanent or fixed to the land GDP Represents the monetary value of all finished goods and services produced within a country in a given period. GNP Monetary value of all finished goods and services produced by a country's citizens and enterprises whether physically located within its borders or abroad Addendum Document that is attached to and made part of an original contract as a result of making changes to elements already agreed to Spin2 Land titles online database with a wide range of property documents. Titles, registered interests, historical titles, condo bylaws brokerage interests When the interests of the brokerage are at odds with the interests of a client of the brokerage Principle of Substitution A rational informed buyer would pay no more for a property then it would cost to purchase another property that's equally desirable Titled Parking stall or storage lockers that use bold lines on condo plan are Exclusive use Parking stalls or storage lockers that use dashed lines on condo plan are Bylaws The _________ provide for the operations and administration of the council Conspiracy among competitors False or misleading advertising The competition act is concerned with two key issues, what are they Offer Acceptance Communication This best describes the protocol for a mutual agreement Appendix Form used along with listing agreement identifying info about sellers property - mortgage specifics, residential leases Schedule Form used along with purchase contract to specify info for the benefit of the buyer - condo documents to review Taxation Eminent domain Police power Escheat Powers of govt that limit private land ownership rights Fee Simple Condominium Strata Types of survey plans that can be registered at land titles office Barely blended condominium plans Which condo plan includes includes common property unit Assigned storage areas What type of storage area can be redistributed at discretion of board of directors Intent of security agreement Registration of a security interest against an individuals personal property Value in exchange The value of a commodity as expressed in monetary terms Objective value The value of a commodity as determined by the cost of creation Form Letter of opinion Narrative 3 types of real estate appraisal reports Cost to replace structure with exact same one that's currently exists Describe what is meant by reproduction costs Cost to replace structure with similar ones Describe what is meant by replacement cost Narrative report Which appraisal report is most detailed Errors and omissions insurance known as professional liability insurance Covers claims from financial losses or damages related to errors, omissions and negligence Civil liability Private legal action between two parties reciprocal insurance Under the insurance act what kind of insurance is REIX. To account When a real estate professional holds money, documents, keys to home, or personal belongings they have __ _______ and safeguard them. Impossibility By operation of law which method of terminating a representation relationship is when a building is destroyed in a fire - ceases to exist Creation of law Consensual Controlled by principal