module- 1 & 2 Flashcards
Under REBBA 2002. what are possible Remuneration?
All remuneration payable to a brokerage in respect of a trade in real estate shall be an agreed amount or percentage of the sale price or rental price, as the case may be, or a combination of both
what does RECO stand for?
The real estate council of Ontario .
who is responsible for REBBA?
the minister of government and consumer service are both responsible for REBBA.
BUT it is RECO’s role to interpret, enforce, and suggests modifications to the legislations
RECO Administer REBBA on behalf of the provincial government
what does the code of Ethics under REBBA believe in ?
REBBA sets requirements for acceptable conduct by a brokerage, broker, and salesperson when conducting business.
fundamental objective of the code is to protect sellers and buyers by outlining professional and ethical standard
fundamental objective of the code is to protect sellers and buyers by outlining professional and ethical standard
what are some obligations under the code of Ethics of REBBA?
1-Fairness and honesty - this requires all registrants to treat every client they deal with during the course of the trade with honesty, fairness, and integrity
2-conscientious and competent service- this requires all registrants to provide competent service to all sellers and buyers by demonstrating reasonable knowledge, skills, and judgment
3-Service from others- registrant must advice a seller and buyer to obtain service from another person if they are not able to provide the service with reasonable knowledge, skill, judgment, and competence/ or when they are unauthorized by law to provide such service.
the real estate council of Ontario (RECO) administrators REBBA on behalf of who? what does RECO ensure ?
provincial government
- RECO ensure the regulation of trading in real estate sustain public trust in the real estate marketplace
- RECO register brokerage, individual brokers, and salesperson to trade in real estate and ensure they adhere to the real estate trade in Ontario
- this build trust and solid foundation for professional success
how does the role of RECO enhance REBBA?
RECO work in the public interest:
-enforce registrant to obtain and maintain registration
- establish education standard for registrant, post-registration, broker education, and conturing education
- administrating insurance requirements, which include consumer deposit protection
- addressing inquires, concerns, and complains while taking appropriate action
- conduct inspection on brokerage to ensure complicate with REBBA**
- being a source of consumer protection **
who is a Registrant?
brokerage, brokers, and sale person registered under REBBA
what is a Brokerage?
it is a corporation, partnership, or sole partnership that trade in real estate
who is a Broker?
A broker need registered designation under REBBA to own their own real estate brokerage or to manage a brokerage as a broker manger.
what is a salesperson?
an individual who have the qualification to be registered under REBBA, who is employed by a brokerage to trade in real estate.
how do you obtain registration as a salesperson?
To obtain registration as a salesperson the individual must successfully complete the real estate sale person program. within the first two years of registration, and additional education requirement must be fulfilled to maintain registration as a salesperson
who is a Broker of record?
All brokerage are required to have a broker of record. This individual is broker who is designated by the brokerage to ensure compliance with REBBA. A broker of record can be any broker employed by the brokerage
The broker of record is responsible for all activities of the brokerage, including all brokers, sale person, and other employees of the brokerage.
what is a sole proprietorship?
A sole proprietor is someone who owns an unincorporated business by himself or herself.
Conversely, a business owner and an unincorporated business are the same, and the owner personally bears all results of the business. Unincorporated businesses are usually sole proprietor or partnership companies. The main difference between an incorporated and unincorporated business is the way owners shoulder business activities.
who would the sale person interaction with broker vary?
1- the number of offices for the brokerage, as the broker of record might not attend each location everyday probably mostly the main branch
-2- the extent of technological innovation- the brokerage that uses technology for the administration, communication, and day-to-day running of the brokerage would allow a broker of record to actively participate in the brokerage from offsite over various time period
3-the number of registrant- A brokerage employing a large number of brokers and salesperson typically require a delegation of some management duties to other employees in the brokerage.
agreement with seller/buyer is made with who?
all brokers and salesperson are employees of a brokerage, and thus get authorized to trade on behalf of a brokerage
In conclusion, any agreement with the seller/buyer is made with the brokerage and not the individual broker or salesperson
what is the incorrect term sellers and buyers commonly refer to their salesperson?
“real estate agent” but it is incorrect since the brokerage is the one who is authorized to trade in real estate, thus the brokerage is the agent
what are the steps to become a real estate?
- step 1- complete education requirement
- step 2- Register with RECO once employed by a brokerage
- Step 3-purchase insurance coverage through the RECO insurance program
- Step 4- once you are registered, I have to complete a post-registration education ( within the 2 years registration cycle)
how much time do you have after successfully passing the cumulative theory exam re-registration education phase of the real estate program to finding employment apply for registration with REBBA ?
12 month
when should you submit criminal record check?
Obtaining/ submitting an original criminal record check from local police service ( dated within 6 month of my application with RECO.
should a sale person purchase insurance brokerage ?
All brokerage, broker, salesperson must be in RECO’s insurance program
what does the insurance program provide insurance for?
1-consumer deposit protection: protection for consumer loss of deposit caused by registration fraud, misappropriation of funds, or insolvency
2-Errors and omissions- protection for registrant for errors and commission committed in the course of their professional service
3-commission protection: protection for registrants from loss of remuneration caused by other registrant fraud, misappropriation of funds, or insolvency
when are Annual insurance premiums are due?
mid-august of each year, with the policy period begging on September.
The policy provide 1-year of insurance coverage but its pro-rated (allocate, distribute) for the first year based on the date of your initial registration with RECO
can you trade in real estate once the insurance premium is paid?
once the insurance premium have been paid, the registration is finalized, notification of registration is send to you ( YOU MUST BE NOTIFIED IN WRITING BEFORE ANY TRADING IN REAL STATE IS PERMITTED)
how much time do I have before I have to complete my post-registration education program?
One you have received initial salesperson registration, you have 24 month/2 years to complete post-registration education program
when should you renew your registration with RECO?
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
what is a seller’s market?
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 )
what is a buyer’s market?
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
what is a balanced market?
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
what should a sale person expect in Seller’s market as a listing person?
- 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
what should a sale person expect in Seller’s market as a buyer’s salesperson?
- 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
what should a sale person expect in buyer’s market as a listing person?
- 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
what should a sale person expect in buyer’s market as a buyer’s salesperson?
- 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
what should a sale person expect in a balanced market as a listing person?
- 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
what should a sale person expect in a balanced market as a buyer’s salesperson?
- 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
what type of types of real estate and Associated career opportunities are available for a salesperson?
1- Residential resale 2-New home sales 3-Residential condominium 4-Rural, recreational, and agricultural sales 5-Commercial 6-Leasing commercial properties
what is a residential resale ?
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.
what is a New home sales?
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
what is a Residential condominium ?
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.
what is Rural, recreational, and agricultural sales?
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
what is a recreational property?
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.
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what is agricultural property?
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.
what is Commercial property ?
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.
what is Leasing commercial properties?
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.
who pays the expenses of the marketing?
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.
what is prospecting ? and some tactics it include?
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.
what are some thing you need to do Preparing the property to be shown?
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.
