phase 2

The flashcards below were created by user Anonymous on FreezingBlue Flashcards.

  1. Easement
  2. An easement (or right-of-way) is an agreement that gives an individual, company or
    • municipality the right to use another person’s land in some way. Thus, an easement
    • grants rights to a non-owner, while partially restricting the owner’s use of the land
    • affected by the easement. An easement or right-of-way usually describes a particular
    • portion of property, and although not visible on the ground, provides an area of access
    • to the holder of the easement or right-of-way.
  3. Encroachment Agreements
  4. Encroachment agreements are commonly encountered where one owner has
    • inadvertently built a structure, such as a fence or garage, partly over an adjoining
    • owner’s land.
  5. Certificate of Lis Pendens
  6. A certificate of lis pendens (litigation pending), when registered against title, provides
    • notice that there is litigation pending, or in progress, in respect to that particular parcel
    • of land.
  7. Relaxation permit
  8. A permit issued by a municipality to grant permission to keep a
    development intact despite the fact that it is contrary to a municipality’s land useprovision.
  9. Real property report (RPR)
  10. A legal document prepared by a land surveyor that
    • illustrates in detail the location of all relevant, visible public and private improvements
    • relative to property boundaries.
  11. Legal Obligations to the brokerage
  12. • act honestly toward the brokerage and its broker
    • • perform the services the brokerage hired them to perform but not exceed the
    • scope of their authority
    • • obey the lawful instructions of the brokerage
    • • comply with brokerage policies and procedures
    • • exercise care and skill in providing services to the public
    • • maintain confidentiality of brokerage and client information
    • • ensure the brokerage’s fiduciary obligations to clients are satisfied
    • • comply with applicable provincial and federal laws related to the provision of
    • services to the public
  13. Fiduciary Obligations
    to the brokerage
  14. In this context the fiduciary (industry member) is entrusted with certain powers by the
    • beneficiary (brokerage). Examples of an industry member’s fiduciary obligations to the
    • brokerage include:
    • • loyalty to the brokerage
    • • avoiding conflicts of interest, i.e., between personal interests and the brokerage’s
    • interests
    • • not misuse confidential information learned from the brokerage
    • • account for all monies received from clients
    • • not make a secret profit as a result of the relationship with the brokerage
  15. Statutory Obligations to the brokerage
    • The broker and brokerage require the cooperation of all the industry members
    • registered to the brokerage in order to fulfill their responsibilities. Rules s. 53 sets out
    • requirements and responsibilities of industry members to the brokerage:
    • • trade only in the name that appears on the industry member’s licence
    • • trade only in the name of the brokerage

    • ensure trades and the relevant documentation meet requirements
    • • provide the broker with original documentation and/or copies of original
    • documents provided to the parties or maintained by other brokerages
    • • keep the broker informed of activities being performed on behalf of the brokerage
    • • ensure adequate supervision of employees, i.e., assistants
    • • notify the broker if a deposit for a transaction has not been received
    • • respond promptly to an inquiry by the broker
    • • notify the broker upon learning of a violation of the act, regulations, Rules or
    • bylaws by any brokerage industry member or employee
  16. Sole agency
  17. This is a relationship in which the brokerage and client enter into an
    • agreement whereby the brokerage represents only that client’s interests in a
    • transaction. The fiduciary duties for sole agency are expressed in the Rules: loyalty,
    • confidentiality and full disclosure of all conflicts of interest. Other responsibilities
    • of a sole agent for a seller or buyer are found in the Rules s. 57 and 58.
  18. Dual agency
  19. This refers to a situation in which a brokerage represents two
    • clients, with conflicting interests, in the same transaction. This could occur when
    • an associate represents both buyer and seller in the same transaction, or two
    • associates of the same brokerage represent clients with conflicting interests, that
    • is, one represents the seller and the other represents the buyer. The Rules s. 59
    • speak extensively of the responsibilities of a dual agent.
Card Set:
phase 2
2013-01-20 21:51:11
PHASE term

phase 2 exam
Show Answers: