module- 1 & 2 Flashcards

Question

how much time do I have before I have to complete my post-registration education program?

Answer 1

One you have received initial salesperson registration, you have 24 month/2 years to complete post-registration education program

Answer 2

registration with RECO is renewed every 2 years (YOU ARE RESPONSIBLE TO RENEW YOUR REGISTRATION PRIOR TO EXPIRY)- THEY SEND REMINDED 60 DAYS BEFORE EXPIRY MUST RENEW IT WITH BROKERAGE

Answer 3

the number of buyers who want to purchase properties exceed the available properties ( there is more demand then supply): - properties sells quickly once listed - rising prices due to several buyers wanting to purchase the property at the same time (this is known as competing offer or multiple offers) - buyers have less time to view the property and need to make hurried decision after looking at only one or two properties - buyers must compete some due diligence in advance of an offer as a seller typically prefers offers with few or no conditions ( ex. insure financing is secured and bring home inspectors when viewing the property )

Answer 4

the number of property exceed the the number of buyers to purchase, (there this is more supply then demand ) - more listing available, so the listing Period will be extended - fewer buyers could result in price falling - buyers take a longer time to purchase a property looking for the perfect one - buyer will view a property several times - buyer will feel confident in including more conditions

Answer 5

the number of listing is sufficient to the buyers ( supply and demand is equal) - properties sells within a reasonable period of time - the number of propriety is typical for trading - offers includes term and conditions readily acceptable by all parties - sales prices are generally stabilized

Answer 6

- activities will happen very quickly once the property is listed - a seller may select to review any and all offers on a specific date and time - you are required to set aside a few hours to review and advice on the offers received ( which typically result in an immediate plan for negotiation and offers) - be prepared for negotiations to extend into the early morning hours

Answer 7

- you must be alert to any new listing that would meet my buyer criteria - Act immediately on those listings - you will need to show the property with little notice - I will have limited amount of time to prepare an offer - there will be along hours awaiting a response from the sellers

Answer 8

- the property may not be shown for several days or weeks - however I am still required to stay in contact with the seller - be prepared to respond to any requests for viewing or submission of offers - the overall time period to sell the property will be extended, the listing must be properly serviced throughout the time period

Answer 9

- As a buyer salesperson, you should expect to spend more time showing properties to buyers before they decide wether to place an offer - buyers may also choose to re-visite property serval time before placing an offer

Answer 10

- you should expect the listing to be typical to the property type and geographic location - not all property listed will be sold, but the amount of time to properly market the property is more reasonable and the time to address an offer is more sufficient

Answer 11

- I will be reviewing the listing each day and expect and appointment to show the property can be obtained for that day or within a day or two before the added worry the property will be sold before its shown - buyer will still want to view more then one proper to make the decisions, but the number of property viewing is manageable

Answer 12

``` 1- Residential resale 2-New home sales 3-Residential condominium 4-Rural, recreational, and agricultural sales 5-Commercial 6-Leasing commercial properties ```

Answer 13

Residential resales are properties which have previously been bought and sold, rather than the marketing of a new home from a builder. what to expect: - This career path involves interactions with sellers and buyers on a more personal level than some other opportunities; the sale and purchase of a family home is significantly influenced by the specific needs and wants of each party. - Handling of emotional issues; typically, sellers are leaving their family home due to employment, monetary changes, or changes to the family structure, such as when children move out or a new child is expected - Irregular work hours; most activities are dictated by the availability of sellers and buyers. - Working on weekends and statutory holidays - Receiving telephone calls at home and at all hours. - Difficulty in planning family events or totally removing yourself from work, especially when first beginning your career.

Answer 14

New home sales can involve completely opposite approaches to the transaction by the builder and the buyer. While the builder may look at this solely as a business transaction, the buyer is making a purchase based on their needs and wants, and the emotions will naturally flow. - Little direct involvement with the listing function or the offer presentation (typical for larger new home residential developments). - Responsibilities more closely resembling a retailing situation involving qualifying buyers and closing the sale. -Fixed hours during which a salesperson will be on site in a model home or other site office; showing may consist of furnishing information, using diagrams and plans to describe the buyer’s choices

Answer 15

Condominiums offer a distinct type of form of ownership that includes ownership of a specific unit with shared ownership of the common property. In larger urban centres, salespersons can focus their attention on this market segment as both new condominiums and resale condominiums encompass a large portion of home sales.

Answer 16

Sales of rural, recreational, and agricultural properties requires a unique skill set and can be a challenge for those who are not familiar with the rural lifestyle. Depending on where you are located, the prevalence of rural land will determine the amount of exposure you have to listing and selling these property types. To consider: -Rural properties used as the primary home located on a small acreage will require investigations into the available services; municipal water and sewers may not be available, so a knowledge of wells and septic systems is require

Answer 17

Recreational properties that involve cottages and waterfront locations may involve buyers looking for a secondary property and include non- resident owners. To consider: - The listing and selling of these properties require knowledge on matters affecting ownership of land abutting water that are unique to these property types. A salesperson will need to be familiar with issues, such as unique zoning requirements, the ability to construct improvements along the water, and various other restrictions imposed by local, provincial, and federal legislation or regulations. - Non-resident sellers will have unique taxation issues that must be considered before any listing or sale of the property. -

Answer 18

Selling farms and other agricultural properties are a complex career path that requires specialized knowledge relating to the highest and best use of the land, how the type of farm will impact value, the ability to redevelop or make any change in use of the land, how official plans and zoning bylaws impact property use, accessibility to the property, and the specialized marketing techniques required for specific types of farm properties.

Answer 19

Larger centres can have one or more brokerages focused solely on commercial transactions, or a brokerage may have a few salespersons who will focus their activities on commercial rather than any residential sales. In some areas, a salesperson may trade in both commercial and residential properties, however you should understand that commercial sales can be quite complex. Working in the commercial market can be more specialized as there are different commercial segments, each requiring their own skill set.

Answer 20

Many salespersons will provide services related to leasing properties for the owners. Leasing will require a comprehensive understanding of the legislation impacting commercial tenancies. Above average people skills are important as interactions with tenants can present quite a diverse consumer base.

Answer 21

Typically, all advertising is done at the expense of the salesperson and is a cost borne whether the property sells or not. An effective marketing plan is important to both the seller and you.

Answer 22

Prospecting involves searching for qualified buyers for the listed property and includes more than placing a sign on the property or showcasing the listing on a website. - Introducing yourself to the neighbours; often family or friends of someone who lives nearby is the right buyer for the property. • Distributing flyers which highlight the features of the property; this would include hand-delivering to the neighbouring properties, placing copies in a weather-proof container attached to the “For Sale” sign, and having copies on hand readily available should the salesperson meet up with the right buyer. • Ensuring other salespersons within the brokerage and other brokerages are aware of the listing as they may be working with buyers who are searching for this type of property.

Answer 23

howing the property to a prospective buyer could occur immediately after it has been listed for sale, so the property needs to be ready. If any repairs or maintenance is required, this should be completed before the home is viewed. When showing the property to a prospective buyer, ensure you are familiar with the home; that is, be able to show the property as if it was your own home.

Answer 24

Qualifying involves first determining the buyer’s needs and wants, and ensuring any property shown falls within their financial abilities. When working with buyers, you should select a limited number of properties to show for each outing based on the information obtained during the qualifying process. The purpose of selecting a few properties is to avoid confusion over what features were in each property viewed, and to continue to define the buyer’s needs and wants.

Answer 25

Ss the listing salesperson, you will guide the seller through the offer presentation and negotiations. This involves analyzing the buyer’s offer, ensuring the seller is aware of any market conditions or other circumstances they should take into consideration, and providing advice to help them arrive at a well informed decision. you should be prepared, as these negotiations can be challenging and complex. Always ensure decisions are based on sound judgement and not the heightened emotions associated with negotiating an offer.

Answer 26

Once an agreement is binding, you will remain in contact with the seller or the buyer to ensure there are no other events or circumstances that would impact the successful completion of the sale.

Answer 27

A brokerage is entitled to payment for services rendered as agreed between the parties. In real estate transaction this takes a from of an agreement ( such as buyer and seller agreemnt)

Answer 28

A commission is the amount of money the brokerage receives as payment for the service provided in a transaction It is typically calculated as a percentage of the selling price

Answer 29

refers to a pricing structure that charges a single fixed fee for a service, regardless of usage

Answer 30

remuneration is once the transaction is completed ( NOT WHEN AN OFFER IS ACCEPTED)

Answer 31

When you are hired by a brokerage you will finalize an agreement that indicates how the remuneration earned on a sale is shared between yourself and the brokerage

Answer 32

An accepted offer does not mean the transaction will be successfully be completed ( The agreement might include conditions that if not meet, the agreement could then be cancelled )

Answer 33

winter normally is a slow season for the listing and sales)

Answer 34

selling side = co-operating brokerage the seller's lawyer sends a cheque to the listing brokerage to be distributed according to the listing agreement and the brokerage involved in the transaction

Answer 35

Real estate and Business Brokers Act. 1- framework of the regulation of the real estate profession 2-Ensure the integrity of a real estate transaction is upheld

Answer 36

equity is the difference between the market value of the home and the amount you owe the lender who hold the mortgage. your equity is the amount you'd receive after paying off the mortgage id you were to sell the home

Answer 37

- Selling, leasing, or exchanging of real estate - listing any real estate for sale or lease or showing real estate to a buyer or a tenant - Advertising of any real estate – such as a sign on a property identifying the property is available for purchase or lease - Negotiating of any real estate – such as assisting a seller or a buyer to negotiate an agreement of purchase and sale

Answer 38

- Hosting an open house for a seller’s property - Conducting a listing presentation to a potential seller - Providing advice about real estate, such as an appropriate listing price, or the price that should be offered or accepted - Showing a property to a buyer - Negotiating the sale of a property - Negotiating an agreement to leasf or a residential and commercial landlord or tenant - Explaining information or answering questions about a property to a potential buyer - Accessing a property to assist a buyer or a third-party professional, such as an appraiser

Answer 39

yes it is trading, because although it is general information about real estate, it is intended to promote registrant or the business service, and thus it is deemed as a trading activity

Answer 40

yes providing advice is trading activity. and even though the salesperson know them the intent is to secure a future listing

Answer 41

A landlord is a person or other entity, such as a corporation, that owns property that is leased to another (called a tenant or lessee) rather than being occupied by the owner. The term “landlord” is commonly used by the general public, however the term “lessor” is often used within legal documents, such as a lease. A lessor is the one who grants the lease.

Answer 42

A tenant is a person or other entity, such as a corporation or a business, who occupies property that is owned by another (called the landlord or lessor). The term “tenant” is commonly used by the general public, however the term “lessee” is often used within legal documents, such as a lease or other form of tenancy agreement. A lessee is the one who is leasing the property.

Answer 43

- Representation – refers to the relationship when the party is a client - Providing services – refers to the relationship when the party is a customer

Answer 44

The term representation implies an agency relationship has been established between two parties. An agency relationship places both regulatory (REBBA) and fiduciary obligations on the brokerage. Fiduciary obligations generally require the brokerage to be loyal, not disclose confidential information, and promote and protect the seller or the buyer’s best interests.

Answer 45

A brokerage can provide services to a seller or a buyer rather than represent the party. Providing services does not place the same level of obligations on the brokerage as when representation has been established.

Answer 46

Client: A client is represented by a brokerage and is owed loyalty, confidentiality, and many other obligations both under REBBA and the common law of agency. In REBBA, the term “client” is used, and a client can be a seller or a buyer. (the brokerage and the seller agree the brokerage will represent them as a client)

Answer 47

A customer is a person who is receiving services from a brokerage.(The brokerage and the buyer agree to a customer service arrangement and capture that in a written agreement that serves to formalize the “customer” relationship)

Answer 48

A representation agreement from an agency relationship between the brokerage and the party - the Code of Ethics requires that a registrant must reduce a verbal representation agreement with a seller or a buyer to writing at the earliest practical opportunity and before any offer is made, have it signed on behalf of the brokerage, and submit it to the seller or the buyer for signature.

Answer 49

- When working with a seller, the document used as a representation agreement - **buyer representation agreement: When working with a buyer**

Answer 50

allows a party to obtain services from another brokerage with no obligation to compensate the brokerage who has the customer service agreement signed with them.

Answer 51

- document used to negotiate the terms of a sale between a seller and a buyer - agreements of purchase and sale must be in writing and signed by the parties to be enforceable * *For example, some of the different agreements of purchase and sale can include: - Residential property with a single-family dwelling - Residential condominium - Residential co-operative property - Property located on a leased parcel of land - Commercial property - Commercial condominium - Sale of a business

Answer 52

lists the agreed-upon method of calculation for compensation once a transaction is complete

Answer 53

Real estate typically refers solely to the tangible aspects of a property. Tangible means the aspect can be touched, and includes the land and the building(s) upon it.

Answer 54

The term “improvements” is also used to refer to any structure or other permanent addition, such as a deck, a shed, or a fence.

Answer 55

Property is viewed as either real or personal. - Real property includes both the **tangible aspects** – the real estate (that being the land and improvements) - AND the intangible (the rights). **Intangible** means the aspects cannot be touched; however, they do add value to the property. refer to both aspect of the property

Answer 56

In many transactions, the property rights being conveyed are commonly referred to as the “bundle of rights”. This is the right to possess, use, enjoy, and sell the real estate.

Answer 57

Personal property refers to the moveable items of the property Examples include appliances, furniture, light fixtures, and drapes.

Answer 58

One type of personal property is referred to as a fixture. Fixtures are securely attached – usually permanently – to a property and are to remain upon the sale of the property. Fixtures are typically included in the purchase of property. If a seller wants to retain any fixture, the **agreement of purchase and sale** should identify the item(s) as excluded. Examples of fixtures that a seller may wish to exclude include curtain rods, window shutters, light fixtures, mirrors, and built-in appliances.

Answer 59

Personal property can also be referred to as a chattel. The distinguishing aspect of a chattel is its mobility. All chattels, by default, are excluded from the purchase of a property. There will be times, however, where a buyer wishes to include certain chattels in the purchase price such as a refrigerator and stove, or the seller offers for these chattels to remain. Any chattel that is to remain should be identified on the agreement of purchase and sale to avoid misunderstanding.

Answer 60

who has “title” to the property, as this is the legal owner who has the authority to sell the property.

Answer 61

Once reviewed by legal counsel, leads to a conclusion as to whether the owner has good and marketable title – Only then the transfer of title can occur without any encumbrances affecting the buyer.

Answer 62

A document is used to show the transfer of ownership – also referred to as a transfer of title or a transfer of an interest in real property.

Answer 63

The term “deed” is used under the Registry Act to describe the document used.

Answer 64

The term used when title is registered under the Land Titles Act is “transfer”.

Answer 65

Transfer/Deed of Land

Answer 66

when the transfer between the seller and the buyer occurs

Answer 67

- A mortgage is a claim or encumbrance upon a property given by the owner of the property to the lender as security for money borrowed - mortgage must be repaid in full when the property is sold. - The term “mortgage” is used under the Registry Act. The term used when title is registered under the Land Titles Act is “charge”. ex. "Charge/Mortgage of Land”. document

Answer 68

The term “mortgagee” is used to identify the lender when title is registered under the Registry Act.

Answer 69

The term “mortgagor” is used to identify the borrower when title is registered under the Registry Act.

Answer 70

The bungalow has traditionally been a highly popular housing style given the lack of stairs, with the primary living area contained on one floor.

Answer 71

The ranch style bungalow is distinguished from a bungalow as this design offers more living space and typically includes an attached garage.

Answer 72

The bi-level or split entrance bungalow makes more effective use of the lower basement areas. The basement is raised above grade level when compared to the traditional bungalow, allowing for larger windows and greater sunlight, access, and ventilation.

Answer 73

Typically, in a one and one-half story home, about 60% of the total living area is contained on the first floor. This style is more cost-effective than the bungalow because it provides more square footage on the same building coverage (or foot print) on the land.

Answer 74

The two-storey home has traditionally been a very popular choice for building design. This plan provides an attractive blend of large living area combined with a separate level for sleeping areas. Unlike the one and one-half storey, rooms on the upper level do not have the angled ceilings on the upper level and can be very spacious.

Answer 75

Split-level homes were first introduced in the 1960's, and gained their widest popularity during the 1970's and early 1980's Side-split – where the layout is left to right, and Back-split – where the layout is front to rear

Answer 76

The semi-detached home is identified by one of the structure’s walls being attached to another structure. These units are side- by-side and located on separately deeded lots. A semi- detached home provides many features associated with detached homes, including overall size and individual title to the land, while offering certain price advantages, particularly for young families.

Answer 77

in which three or more units are joined together by party walls. Each town house unit typically contains a full basement, main level living area, and upper level for bedrooms.

Answer 78

The linked dwelling involves two or more single-family homes that are attached, however the placement of the attached portion of the home is not always evident. Many linked dwellings are attached below grade by a concrete wall. Others are attached above grade, typically using the garage walls as the attached portion.

Answer 79

This structure type is characterized by more than one dwelling unit within a single building. A dwelling unit is generally described as a self-contained unit that contains, at a minimum, a kitchen, bathroom, and living area/sleeping facilities. Common multi-unit residential dwellings include a residential duplex, triplex, and fourplex. In each instance, there will be a separate entrance and/or a shared entrance through a common vestibule.

Answer 80

Commercial office buildings can range from free- standing small offices and retail operations to low- and high-rise office complexes.

Answer 81

Retail commercial operations can include single, stand- alone buildings, groupings of retail stores on a downtown street, neighbourhood malls, and large indoor shopping centres that serve local and/or regional markets. Big box stores and outlet malls also make up the retail sector.

Answer 82

Many commercial buildings are classified as mixed-use, in which office, retail, and/or residential are combined in one complex.

Answer 83

Industrial structures can be broadly grouped under three categories: 1-General purpose buildings that offer features and facilities for a wide range of operations. 2- Special purpose buildings that offer selected features that limit the potential use, such as a manufacturing plant or a distribution centre with numerous loading docks. These buildings could be used for a limited number of alternative purposes. 3-Single purpose buildings that are designed for a specific use with little or no potential for conversion to other purposes.

Answer 84

gri-business is a significant component in the provincial economic picture. Large scale farm operations require special purpose buildings for livestock and crops.

Answer 85

RECO’s mission is “supporting a fair, safe, and informed real estate market for consumers in Ontario through effective and innovative regulation of the services offered by those who trade in real estate.”

Answer 86

RECO has a 12-member Board of Directors, which provides strategic direction to the Chief Executive Officer (CEO) and senior management team. Directors sit on committees that oversee all facets of RECO’s legislative and regulatory responsibilities. The board includes nine elected members registered under REBBA and three non- registrant members appointed by the Minister of Government and Consumer Services.

Answer 87

1- The Canadian Real Estate Association (CREA) 2-The Ontario Real Estate Association (OREA) 3-Local Real Estate Boards

Answer 88

The Canadian Real Estate Association (CREA) is the national organization for members throughout Canada, with offices located in Ottawa. Operates at the national/federal level, and is often referred to as the voice of Canadian real estate. CREA focuses on national and international representation of the real estate industry. REA is the owner of the trademarks REALTOR® and MLS® in Canada and operates the Realtor.ca website.

Answer 89

At the provincial level, the Ontario Real Estate Association (OREA) represents the brokers and salespersons who are members of the province’s real estate boards and associations. OREA has many functions, including: • Maintaining a strong provincial lobbying voice for REALTORS® • Providing downloadable forms and clauses • Offering savings programs • Informing members of industry news OREA continually strives to improve the image of REALTORS® by enhancing educational and professional standards.

Answer 90

At the local level, real estate boards and associates act as industry representatives for a local area or region. Through dues paid to their local real estate board, a salesperson becomes a member of CREA and OREA and is entitled to call themselves a REALTOR®.

Answer 91

REIC is a not-for-profit organization that provides advanced education and professional development within the Canadian real estate industry. REIC also offers a number of professional specialty designations such as: • Fellow of the Real Estate Institute (FRI) • Certified Property Manager (CPM) • Certified Commercial Leasing Officer (CLO) • Accredited Residential Manager (ARM) These specialty designations are important as they give a salesperson a higher degree of knowledge and additional accreditation.

Answer 92

The Certified Commercial Investment (CCIM) Institute provides education programs and services for professionals in commercial and investment real estate, as well as allied industries. The institute awards the CCIM designation to individuals completing a series of graduate level courses based on advanced concepts and techniques in commercial real estate. Four core courses provide the fundamental skill sets required: financial analysis, market analysis, user decision analysis, and investment analysis relating to commercial investment properties

Answer 93

The Society of Industrial and Office REALTORS® (SIOR) is a leading international organization of commercial and industrial practitioners. The society is dedicated to the maintenance of high professional standards in the fields of industrial and office real estate.

Answer 94

Inspect the property being listed for sale and note and document important aspects of the property • Conduct a comparative market analysis to determine a recommended listing price range • Establish a list price with the seller • Design and recommend a sales and marketing strategy to include such items as open houses, advertising, social media, and the multiple listing service * Provide recommendations to prepare the home for sale such as decluttering, repairs, or depersonalization * Provide a list of third-party experts that might be required such as home stagers, home inspectors, and handymen * Co-ordinate showing appointments * Negotiate a satisfactory agreement of purchase and sale on behalf of the seller

Answer 95

* Determine the needs and wants of the buyer (for instance, a three-bedroom home with two-car parking near transit, as opposed to a one-bedroom condominium with no parking and a locker) * Ensure the buyer has received financial approval to buy a property and has determined their budget * Select suitable properties that meet the buyer’s criteria and arrange showings with the buyer • Once a property of interest has been identified, prepare a comparative market analysis to determine an estimate of value * Identify all material facts associated with the property and disclose to the buyer * Prepare an agreement of purchase and sale with any necessary conditions • Present the agreement of purchase and sale and negotiate the agreement with the seller or the seller’s representative * If the offer is accepted, assist the buyer in satisfying any conditions such as home inspection * Recommend third-party professionals where appropriate, such as home inspectors and mortgage brokers * When any conditions are satisfied, prepare and execute the appropriate notices * Assist the buyer’s lawyer as necessary * Provide after-sale follow-up**

module- 1 & 2 Flashcards

(119 cards)