LESSON 3 Flashcards
(30 cards)
COMPLETE THE SENTENCE:
All real estate services are provided through the ________.
ANSWER:
All real estate services are provided through the BROKERAGE.
COMPLETE THE SENTENCE
The brokerage is permitted to offer only the real estate services that _ _ _ _ _ _ _
ANSWER:
The brokerage is permitted to offer only the real estate services that the managing broker is permitted to offer.
LIST 4 RESPONSIBILITES OF THE MANAGING BROKER?
ANSWER:
Supervision
Knowledge of improper conduct / Dealing with improper conduct
Ensure the trust accounts and records of the brokerage are maintained
Notice to parties respecting deposits
Explain the ACCOUNTS AND RECORDS duty of the managing broker?
ANSWER:
Accounts and records: A managing broker must ensure the trust accounts and records of the brokerage are maintained in accordance with RESA and the Rules and ensure proper management and control of documents and other records related to licensing and regulatory requirements.
Explain the managing broker’s duty with regards to DEPOSITS?
ANSWER:
Notice to parties respecting deposits: A managing broker must ensure that all parties involved in a real estate transaction are immediately notified if a deposit has not been received or a deposit cheque has not been honoured by a financial institution. This notice must be given or confirmed in writing.
What are the two broad categories of improper conduct by licensees?
ANSWER:
Professional misconduct and conduct unbecoming a licensee
Examples of professional misconduct?
Licensee commits professional misconduct if:
contravenes Real Estate Service Act, the Regulations or the Rules;
breaches a restriction or condition of their licence;
wrongful taking or deceptive dealing;
demonstrates incompetence in performing any activity for which a licence is required;
fails or refuses to cooperate with an investigation by either the Council or the Superintendent;
fails to comply with an order of the Real Estate Council; or
makes or allows to be made any false or misleading statement in a document that is required or authorized to be produced or submitted under RESA.
Examples of conduct unbecoming of a licensee?
ANSWER:
REAL ESTATE SERVICES ACT defines conduct unbecoming a licensee as conduct that:
is contrary to the best interests of the public;
undermines public confidence in the real estate industry; or
brings the real estate industry into disrepute.
The _ _ _ _ _ may conduct an investigation to determine whether a licensee has committed professional misconduct or conduct unbecoming a licensee.
The REAL ESTATE COUNCIL may conduct an investigation to determine whether a licensee has committed professional misconduct or conduct unbecoming a licensee.
Explain what a Consent Order is?
Consent Orders:
Once a licensee receives a notice of hearing, the licensee may choose not to dispute the allegations set out in the notice.
THE REAL ESTATE SERVICES ACT (RESA) permits licensees who are the subject of a notice of a disciplinary hearing to enter into an agreement with the Real Estate Council regarding a disciplinary order without the need for a hearing (section 41).
In order to proceed without a hearing, the licensee must consent to the discipline committee making a specified discipline order.
Additionally, the licensee must agree to a Statement of Facts relating to the matter in question.
Explain what an urgent order is?
URGENT ORDERS:
Where there has been professional misconduct
AND
the length of time that would be required to complete an investigation / hold a discipline hearing, would be detrimental to the public interest,
a discipline committee may make an order suspending a licence, imposing restrictions or conditions on a licence, or requiring a licensee to cease or to carry out a specified activity without holding a hearing
List 4 sanctions / penalties the discipline committee may impose?
1. reprimand (i.e., formally warn) the licensee;
2. suspend a licence for the period of time the committee considers appropriate or until specified conditions are fulfilled;
3. cancel the licensee’s licence;
4. impose restrictions or conditions on the licensee’s licence
5. require the licensee to cease or to carry out any specified activity related to the licensee’s real estate business;
6. require the licensee complete a course of studies or training;
7. prohibit the licensee from applying for a licence for a specified period of time
In most circumstances in which a licensee is the subject of a decision or order from the REAL ESTATE COUNCIL or Superintendent, the licensee may appeal the decision. The appeal is to the _ _ _ _ _ _ _
In most circumstances in which a licensee is the subject of a decision or order from the REAL ESTATE COUNCIL or Superintendent, the licensee may appeal the decision. The appeal is to the FINANCIAL SERVICES TRIBUNAL
TRUE OR FALSE?
An appeal to the Financial Services Tribunal can only be submitted by way of a written appeal, unless specific permission is received from the Tribunal and notice of the appeal must be filed with the Chair of the Financial Services Tribunal within 60 days of the Council’s decision.
ANSWER: FALSE
Appeal to the Chair of the Financial Services Tribunal must be made within 30 days of the Council’s decision.
The _ _ _ _ _ _ _ Manual has been developed to assist managing brokers in discharging their duties under the Real Estate Services Act (RESA).
The Brokerage Standards Manual has been developed to assist managing brokers in discharging their duties under the Real Estate Services Act (RESA).
TRUE OR FALSE? The Real Estate Council can conduct an investigation only at the request of the Superintendent of Real Estate?
ANSWER: FALSE
Give four examples of the managing broker’s SUPERVISION requirement in performing his/her duties?
EXAMPLES OF SUPERVISION FUNCTION
The managing broker ensures that the brokerage, and all its licensees are currently and properly licensed.
Training/professional development assistance/guidance is provided for licensees, employees and others in the brokerage
Follows up on the activities of licensees who are absent for prolonged periods from the office
A brokerage procedures manual has been read and acknowledged by its licensees clearly disclosing to them the rules and office policies of the brokerage
Licensees are aware of and comply with the Rules, including the application of RESA to the provision of all real estate services by a licensee, and the requirements for disclosure, including the need to provide certain disclosures in writing.
NOTE ONLY / INVESTIGATIONS
The parties who are subject to investigation by the Council are LICENSEES OR FORMER LICENSEES, or officers, directors or controlling shareholders or partners of a licensee or former licensee. All such parties are prohibited by the Act from withholding, concealing, destroying or refusing to provide any information reasonably required for the purpose of the investigation.
The Council may also apply to the Court for an order authorizing the seizure of records or other evidence wherever located if the Council has reasonable grounds to believe that the licensee committed professional misconduct or conduct unbecoming a licensee (section 38).
NOTE ONLY / INVESTIGATIONS
The parties who are subject to investigation by the Council are LICENSEES OR FORMER LICENSEES, or officers, directors or controlling shareholders or partners of a licensee or former licensee. All such parties are prohibited by the Act from withholding, concealing, destroying or refusing to provide any information reasonably required for the purpose of the investigation.
The Council may also apply to the Court for an order authorizing the seizure of records or other evidence wherever located if the Council has reasonable grounds to believe that the licensee committed professional misconduct or conduct unbecoming a licensee (section 38).
TRUE OR FALSE? The Brokerage Standards Manual contains guidance from the Real Estate Council for managing brokers in helping them discharge their duties.
ANSWER: TRUE
TRUE OR FALSE?
If a licensee intends to dispose of real estate, the licensee must also make disclosure to the buyer of the real estate.
ANSWER: TRUE
TRUE OR FALSE?
A team name must be approved by the Real Estate Council before it is used in any form of real estate advertising.
ANSWER: TRUE
TRUE OR FALSE?
All money held or received on account of remuneration for real estate services, including referral fees and a share of remuneration received from another brokerage, must be deposited in the brokerage trust account.
ANSWER: TRUE
TRUE OR FALSE?
Any amendment to the terms of a service agreement must be in writing and signed by the client and an authorized signatory of the brokerage.
ANSWER:
TRUE
THE REAL ESTATE SERVICE ACT requires that a licensee must promptly pay or deliver all money to the brokerage that is required to be deposited in the brokerage trust account, and that the brokerage must PROMPTLY PAY such funds into a brokerage trust account.
What if the cheque is received after banking hours?
If a cheque is received after banking hours, and it is not possible to deposit the cheque, it must be deposited the following business day.
