ravi chapter 2 licenses

Question 1

what are the 3 types of licenses

Answer 1

1. trading services
2. rental property management services
3. strata property management services

Question 2

which type of service am i training for

Answer 2

training service! buying, selling, leasing

Question 3

what are the traits of real estate trading services?

Answer 3

1. advising on the price for real estate
2. finding real estate for a party
3. finding a party for real estate
4. showing real estate
5. negotiating the price
6. presenting offers
7. receiving deposits

Question 4

what is specifically not a service under the real estate service act?

Answer 4

constructing!

property development etc

Question 5

what are the 3 requirements for getting a license?

Answer 5

1. must have good reputation
   - no license denied
   - no offences/no fraud
2. police record check
3. write and pass exams (fulfill educational requirements)

Question 6

who needs a license to sell real estate?

Answer 6

anyone who is going to charge money or give any advice on real estate

Question 7

what are the 4 levels of licenses?

Answer 7

1. brokerage
2. managing broker
3. associate broker (assistant)
4. representative (represent the brokerage)

Question 8

every brokerage must have what?

Answer 8

a managing brokerage. if the manaing brokerage loses its license than the brokerage can not operate

Question 9

is a managing broker a person or a corporation?

Answer 9

a person (a person appointed by a brokerage to represent it for all purposes)

Question 10

what is the requirement to become a managing broker

Answer 10

2 years of experience as a rep in the past 5 years
19 years old
pass managing brokers exam

* this is important, they will ASK this on the exam, they might say is it 3 years experience, or in the past 10 years*

you MUST remember it is 2 YEARS EXPERIENCE IN THE PAST 5 YEARS!!!

Question 11

how much experience required to become a managing broker

Answer 11

2 years experience as a rep in the past 5 years

Question 12

what does it mean that the managing broker is “vicariously responsible for the reps”

Answer 12

the managing broker is responsible for whatever the reps do (actions)

Question 13

difference between a managing broker and an associate broker?

Answer 13

the associate broker must pass the same exam as managing broker, but is not responsible for reps or liable to broker

Question 14

what is a rule when advertising as a realtor?

Answer 14

the brokerage name much be visible and easily readable

Question 15

commission is up to who?

Answer 15

me, i am allowed to charge however much i want to charge

Question 16

representative commision can be any amount that is ___ or ____, but can not be _____?

Answer 16

can be fixed or percentage

can NOT be NET

Question 17

what is an example of NET commision

Answer 17

you list a house for $120,000 and it sells for $135,000.

$15,000 would be NET commision, this is not allowed!!!

you can NOT say, “ i want the extra amount”

Question 18

what are the sales procedure steps???

Answer 18

1. the listing contract
2. advertising
3. dealing with parties
4. contract of purchase and sale
5. acceptance of the offer
6. deposits into a trust account
7. transaction (trade) record sheet

Question 19

if you close a deal, who MUST recieve a copy of the contract (agreements copy)as specified by th real estate services act

Answer 19

1. all of the buyers
2. all sellers
3. both brokerages

Question 20

what happens if a sales happens, and you represent the seller vs representing the buyer?

Answer 20

the agent representing the buyer, will take the deposit and give it to HIS/HER brokerage, who will then put that money into a TRUST account

Question 21

how many trust accounts does a brokerage need to have

Answer 21

1 trust account per service (not per client)

ussually would need 3 trust accounts…
trading
strata
rental

Question 22

can money be taken out of a trust account

Answer 22

yes under certain conditions

• pay commisions to the agent
• pay person whos credit money was depositied
• pay for expenses of th client

a brokerage MAY NOT withdraw money from trust account to cover brokerage business expenses

Question 23

what is “trade (transaction) record sheet” and what is required on it

Answer 23

it is the final document to be completed once for the agreement (the last step)

it includes..

1. record of sales to be kept by the brokerage
2. sales price (consideration)
3. nature of trade (sale/lease)
4. name/adress of parties
5. remuneration, commission amounts and parties

Question 24

what is remuneration?

Answer 24

money paid for work or a service

Question 25

what is the rule for "teams"

Answer 25

all members of the team must be licensed with the sames brokerage

Question 26

how do " teams" work?

Answer 26

if you get a "listing" it belongs to all team members

Question 27

what are the 2 acts created by the provincial goverment?

Answer 27

1. real estate servicing act (resa) | 2. real estate development marketing act (redma)

Question 28

what are the 5 organizions created by RESA??

Answer 28

1. real estate council 2. superintendent of real estate 3. real estate foundation 4. real estate errors and omissioins insurance 5. real estate compensation fund

Question 29

what does the real estate council do?

Answer 29

``` responsible for rules, regulations and by laws renew license can suspend licenses can order re education as a penalty can reprimand licensees ``` licensee fees pay for council expenses

Question 30

how many reps are on the real estate council

Answer 30

16

Question 31

real estate council and real estate superintendant do not do what?

Answer 31

law reforms (change laws)

Question 32

who can cancel licenses and who can cancel memberships

Answer 32

council- can cancel license | board - can cancel membership

Question 33

how many members in the real estate foundation? | what is the foundations main purpose

Answer 33

5 members -help the "public" in education does real estate law reform does real estate research

Question 34

who does real estate law reform

Answer 34

real estate foundation

Question 35

real estate errors and ommisions, what does it do? how many members are there?

Answer 35

protects realtors when something happens, if a claim is made, the realtor must pay 2000 deductable and has 1 million dollars insurance also the realtor pays $250 per year if the realtor does any fraud or dishonest, he/she will NOT be covered!!!! also, doesnt have anything to do with commisions members: 7

Question 36

what is the real estate compensation fund

Answer 36

it looks into any money that goes missing from the trust account

Question 37

what are the two voluntary organizations?

Answer 37

1. bc real estate association | 2. real esate boards

Question 38

what is the bc real estate association for?

Answer 38

- provides ongoing education | - advances education for real estate

Question 39

what is the real estate board for?

Answer 39

- code of ethics | - also provides the mls(where you research buyers and sellers)

Question 40

real estate development marketing act- what are the rules of the disclosure statement?

Answer 40

1. must be prepared by the developer 2. must be filed with the superintendent of real estate 3. must be in the forms required by the superintendent of real estate

Question 41

(redma) how many lots are required in order for a developer to have to provide a disclosure?

Answer 41

5 lots in a subdivision

Question 42

what does it mean to rescind (rescission rights)

Answer 42

after a purchase has agreed to buy from the developer, the purchaser has 5 days to back out of the agreement

Question 43

what are the 3 real estte services within the real estate services act? 1. constructing a mall, trading services, home construction 2. construction, trading, selling 3. trading, strata property management and rental property management 4. slling, buying, trading

Answer 43

3. trading, strata property management and rental property management

Question 44

to receive a license, a managing broker must be of good reputation with 2 years of experience anywherei canada/yukon. he must also.... 1. submit his own personal financials required by the council 2. readall the disclosure information 3. submit financial statements of all licensees they will hire 4. file and prepare the disclosure statements of the developer with the superintendant

Answer 44

1. submit his own personal financials required by the council tricky- licensees do not have to submit financial statements, i think it was thinking after they were hired, but it means when they are hired

Question 45

what categories are exempted from the licensing requirements? 1. mrs jones selling her neighbors home for $1,000 b. property inspectors c. strata managers d. employees of a developer selling developer units 1. a and d 2. b and d 3. a and c 4. b and c

Answer 45

2. b and d the correct answer is actually b, c and d!! the key thing is that if you are not charging for the sales service, you are exempt of licensing

Question 46

real estate council is not responsible for law reform or enforcing the code of ethics. real estate council may investigate a licensee of misconduct without a courts permision ____ 1. only before becoming a licensee 2. only after becoming a licensee 3. anytime 4. after 2 years of holding a license

Answer 46

3. anytime

Question 47

a developer is who is not exempted from the disclosure requirement under the REDMA. he or she must provide a disclosure statement to the ______ before writing the purchase agreement and the ____ has 7 days to rescind the contract 1. superintendent of real estate, purchaser 2. purchaser, purchaser 3. plaintiff, purchaser 4. licensee, licensee

Answer 47

2. purchaser, purchaser tricky-dont let the superintendent fool you on this one

Question 48

a brokerage license may be issued to a corporation if 1. the managing broker hired is licensed in all 3 types of services 2. the brokerage statements are filed with the errors and omission 3. the managing brokeer has been providing real estate services in canada/yukon for 2 years within the last 10 years 4. none of the above

Answer 48

4. none of the above only need 1 type of service to become broker statements are filed to the superintendent it is 2 years service within past 5 years i think the word "coroporation" confused me

Question 49

which statement is true? 1. a brokerage is a physical location that must be a partnership or corporation 2. brokerages must have a licensed managing broker and with or without an associate broker 3. a licensee cannot work independently and for more than 1 brokerage 4. all of the above

Answer 49

4. all of the above

Question 50

what are the powers and the duties of the real estate council 1. hold disciplinary hearings 2. levy fees on licensees for council expenses 3. collect fees from licensees for the indemnity plan errors and omissions 4. all of the above

Answer 50

4. all of the above

Question 51

under which circumstanaces do thes real estate service act permit the brokerage to withdraw money from the trust account a. instructions of the owner to whom the money was deposited b. money for commission of the boker c. money deposited by mistake d. money required for brokerage expenses 1. a + b + c 2. a + b + d 3. b + c + d 4. none of the above

Answer 51

1. a + b + c

Question 52

which of the following statements regarding commision are true? a. a licensee must disclose to his or her brokerage the full amount of commisions received or expected to be received b. commision may not be based on the difference between the list price and the sale price (net) c. real estate trading services must be provide to the seller according to a written service agreement d. the real estate services act restrics a licensee from charging commision lower or higher than other brokerages 1. a + b 2. a + c 3. b + c 4. b + d

Answer 52

1. a + b

Question 53

which of the following will not qualify as a real estate service? 1. selling a warehouse in kelowna for your sister living in toronto 2. collecting deposits for the use of real estate for tenants 3. collecting strata fees 4. constructing a home for the managing broker for a small fee

Answer 53

4. constructing a home for the managing broker for a small fee

Question 54

which of the following guidlines of the real estate council with respect to th teams must be followed? a. licensed team members must be licensed by the same brokerage b. licensed team members must inform the council if any member leaves or joins the team c. a managing broker must have 2 years of experience within bc/yukon or canada d. a listing must identify all unlicensed persons in an advertising of the listing 1. a and b 2. a, b and d 3. all of the above 4. none of the above

Answer 54

1. a and b