NBREA Real Estate Exam Flashcards

NBREA Real Estate Exam Flashcards What are the 10 principals of privacy?Substansive Principles1)Identifying purposes 2)Consent 3)Limiting Collection of data 4)Limiting Disclosure of dataAdministrative Principles5)Accountability 6)Accuracy 7)Safeguards 8)Openess 9)Individual Access 10)Challenging compliance When do you complete an I I I R?Date of transcation. FINTRAC defines as closing date.Done with a witness.What are the 11 forms related to the Agreement of Purchase & Sale?

1.Agreement of Purchase & Sale2.Vacant Land Schedule3.Mini/mobile home on leased land schedule4.Resale Condominium Schedule5.Resale condo Disclosure6.Multi-use residential income schedule7.Dual Agency Agreement8.Extension of condition & offer9.Notice of a receipt of another offer10.Fulfillemnt of conditions11.Waiver of conditions What are 5 points of Duty of Care?1. Seek Advice when appropriate2.Dilligently prepare contract and other documents3.Keep in step with relevant issues4.Make reasonable inquiry5.Verify accuracy of information What is the maximum deductible for an E & O claim?Maximum $2500 payable on a loss or settlement only.Claims committee can waive deductible.Define AMPs?Administrative Monetary Penalties. Additional tools & criminal sanctions with an objective of ensuring compliance. These allow for a proportionate response to the individual offense.Define HSt as it relates to the Real Estate Industry?Must collect & Remit HST on fees & commission(Unless exempt)Responsible for accuracy of any advice given (So don't) What is REIA and who are the 5 partners? Real Estate Insurance AllianceManitoba, NFLD, NBREA,

NSAR, PEI

What are NBREAs objectives and the Act to Incorporate the NBREA?To regulate the practive of trading in Real Estate & govern it's members in order to serve public interest best and advance interest, develop standards of knowledge, skillsm efficiency, enforce standards of qualifications, ethics, public awareness, execute membership agreements What are 4 remedies awarded by the court? 1)Sue for payment2)Sue for forclosure & Judicial sale3)Power of Sale4)Quit Claim deed What does Clogging mean?Any clause that attempts to prevent the borrower from redeeming legal title will be VOID. Title must be conveyed on repayment.What are the 15 principles of value?1)Anticipation 2)Balance 3)Change 4)Competition 5)Conformity 6)Regression 7)Progression 8)Consistent

9)Contribution 10)External Factors 11)Highest & Best use 12)Increasing & Decreasing returns 13)Substitution 14)Supply & Demand 15)Surplus productivity

Define Mortgagee versus Mortgagor?Mortgagee-Bank/LenderMortgagor-Home Buyer How long is E & O Insurance in effect?For life. Even after retirement as long as you pay into the program What are the 4 "acts of the parties" result in terminatio of agency relationship?

1.Mutual consent2. Revocation3.Expiry4.Completion/performance What is a convential mortgage?20% or higher downpayment What is FCNB & the 3 licenses they provide? New Brunswick Financial & Consumer Service Comissions1)Agent (RLPA) 2)Manager(Broker)3) Sales Person(REALTOR®) Define an equitable mortgage?Mortgages based on equity in the homne. (Secured borrowing account/secured line of credit) Define Agent & Manager?Agent=Brokerage/Firm(Royal LePage Atlantic)Manager=Broker (One individual held liable for actions of the salespeople representing the Agent) Who can use WEBFORMS?REALTOR Link members only Define E & O Insurance?Error & Omissions is Professional Liability insurance and is provided in NB via REIA What are the 6 regulatory obligations to clients & customers?

• Disclose representitive capacity2.Agency/Relationship

forms3. To deliver agreements , offers & statements4. To Account5. Renumeration provisions6. Not to include, breach or make certain promises outside ability to deliver What are the Real Estate Industries 2 sources of legislation?

• The Real Estate Agent Act2. An Act to Incorporate the

NBREA

• Technology trends affecting Real Estate? Wireless devices, Internet Innovation, Internet

Collaboration & The MLS system What are the fines for Very Serious (Individual/Entity), Very Serious(I/E), Serious(I/E), Minor(I/E)?Minor(I/E)-$1-1KSerious(I/E)-$1-100KVery Serious(I/E)-$1-100KVery Serious(I/E)-$1-500KTotal Fines for each offense can exceed these limits What are the 4 market value assumptions? 1)Informed Buyer & Seller2)Rational or Prudent behaviour3)No undue pressure4)Resonable time to find a buyer What is a mechanic lien?Governed by the Mechanics lien Act that provides method of debt collection for work done or material supplied to building site. Actual value of services rendered starts when building starts common business practice.What is the CREA privacy code?Core business principle. Adherance is required for allmembers. Protect personal information and it will not be disclosed, used or collected without informed consent in compliance with national guidelines. PIPEDA is based on the CREA privacy code.What are 5 land characteristics?1)immobility2)Durability3)Uniqueness4)Scarcity5)Ridgidity What are the guidelines for handing a complaint against you?Be objective, avoid admitting guilt, avoid talking to others and Do Not panic What are the 4 legal methods of creating agency? 1)By Agreement 2)By ratification 3)By Estoppel(Can act on principals behalf) 4)Operation of law (appointed)

Name a few consequences if found guilty of professional misconduct or incompetence?Report to committee for a period of time, revocation of membership, suspension of membership(max 24months), require reprimand or counselling on record, require member to refund, waive or reduce comission,Impose max 5K fine, publish findings to public, require coverage of costs of complaint, complete courses, periodic inspections, supervision or limitations of license.What are the 5 exclusions of E & O Insurance? 1)Fraud 2)Fine or Penalties 3)General Insurance Items(Accidents during open house) 4)Appraisers & Property Managers 5)Any claim arising from selling or managing any property wholly or partially owned by an insuree.What is a Maintenance order?An order for payment of support, alimony or maintenance.Includes interest,legal fees or other expenses arising in relation to the mechanics order.What are the powers of the NBREA?Discipline, determination of standard of professional conduct, management of its property & assests, fix & collect fees, education & experience requirements, mandatroy continuing education, investigations by complaints & discipline committees, provide for regulation to govern the assosciation What do the terms PAN & PIN mean?Property Accont NumberParcel Identifier Number What will FINTRAC publically list?1)A serious or very serious violation2)Total penalty is equal to or greater than 10K What does AIDA stand for?AttentionInterestDesireAction (Page 248 Advertising) Describe the 4 Market Forces?1)Economical2)Political3)Social4)Physical What are the reporting requirements under PCMLTFA legislation?

• Suspicious transactions or attempted2.Terrorist

Property3.Large CASH transactions What is a bond and who requires one?A bond acts as a form of insurance. The amount depends of the number of salespeople/managers. All agents require a bond under the Real Estate Agents Act.What happens if Agents license is suspended or cancelled?All licenses attached are also suspended or cancelled Describe the Marital Poperty Act?Applies only to legally married couples, not common-law or divorced couple. The court can order sale if one person is incapacitated.What is misrepresentation?Any representation that does not accord with the facts What are 5 fiduciary obligations to clients? 1.Do not misuse confidential information2.Do not make secret profit3.Disclose conflict4.Maintain utmost loyalty5.Avoid conflicts of Interest What are 3 types of appraisal reports and 3 approaches?1. Direct comparison approach 2.Cost approach 3.Income

approachFinal Reconciliation comes in 3 types:1.Form 2.

Letter of opinion 3.Narrative Report What are the agents record keeping requirements? Keep Records for 5 yearsMust be produced within 30 days of Auditor's requestDocuments requiredLarge Cash