RECA Commercial Unit 2 Questions & Answers Latest Version Guaranteed A+ Briefly describe the three operational units managed by the Office of the Registrar -
Correct Answer1: Trust Assurance and Practice Review Program
-RECA's audit program
2: Professional Conduct Review Program
-following the audit, if an industry professional is in breach of the Act or the Rules, and sufficient evidence is found
3: Professional Conduct Proceedings
-the actions in the conduct review program, such as hearings, appeal of hearings and courts of law if necessary
Define Labour Mobility - Correct AnswerA real estate professionals application from their jurisdiction (country or state) to a different jurisdiction under the same class of license
Define Misrepresentation and the 3 types of it - Correct AnswerWhen industry members provide false or misleading information to a client or another industry member 1: Negligent: giving misleading information, believing it to be true 2: Reckless: giving misleading information unintentionally because of rushing/ poor due diligence etc 3: Intentional: giving misleading information knowingly
Define professional standards - Correct AnswerIt is the professional & brokerages individual and collective responsibility to they have all the necessary resources, knowledge and skills to serve their clients competently and ethically at all times
Describe and explain the differences between the Rules, Regulations & Bylaws -
Correct Answer1: Rules are a set of instructions to be followed by all industry
professionals
- Regulations are the changes (amendments) to the Act (not rules).
- Bylaws are administrative guidelines (rules) that RECA uses to operate its business
Describe legislative prohibitions regarding the practice of industry professionals.(Things industry members must not do) - Correct Answer1: Misrepresentation in order to deceive a client
2: Partake in fraudulent activities
3: Use persons confidential information for personal gain
4: Discourage client to seek legal advice beyond you
5: Deny professional services due to clients race, color/gender/sexual
orientation/disability etc
6: Avoid abusive behavior to clients and fellow employees
7: Engage in conduct that undermines public confidence in the industry
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Describe RECA's disciplinary proceedings - Correct Answer1: Reviewed by Legal in house council 2: Consent agreement: Council and subject agree on the facts
3: If subject does not agree, we go to a hearing panel
4: Appeal of hearing panel: Apply to a higher court to reverse the decision 5: Publication of information: -RECA can publish the subjects information and accused situation on their website if there is no discipline taken prior to going to the appeal panel
Describe RECA's Professional Conduct Review Program - Correct AnswerWhen the audit is done, and suspicion of foul play is suspected. RECA begins investigating the suspect
Describe RECA's requirement to cooperate in the investigation - Correct AnswerNot being truthful, destruction of documents and not providing all information requested for an investigation is considered failing to cooperate.This can result in suspension of license
Describe RECA's Trust Assurance and Practice Review Program - Correct AnswerRECA periodically audits brokerages in pursuit of fraud or breach of trust.Brokerage selection process: Target brokerage that poses greatest risk to the public,
determined by the following criteria:
-errors in brokerages annual accounting report -length of time since last practice review -amount of trust money held in trust account
Practice Review Process:
-RECA sends a Trust Assurance and Practice Review Officer down to the brokerage (announced to not) -Officer looks over brokerage records
Practice Review Outcomes:
-Officer gives broker verbal and written report -RECA contacts broker 2 get opinion on review process
Describe the Associate Broker and Associates responsibilities - Correct Answer1: Must trade under the name that appears on the RECA license
2: May only trade real estate in the name of their registered brokerage
3: ensure all trades meet the legislative requirements under acts & rules
4: provide all trade documents and records to the broker in a timely manner
5: notifying the broker of any violation of rules/regulations/bylaws
6: notifying RECA of changes to email/adress/bankruptcy etc
Describe the Broker/Associate Broker/Associates prohibitions - Correct Answer1:
Offering an incentive/inducement that is not offered by the brokerage itself
2: can't trade real estate for another brokerage
3: can't promise commission/referral fee to anyone outside of their brokerage
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