Professional Liability in Real Estate

These flashcards cover key terms and concepts related to professional liability in real estate, emphasizing laws, compliance measures, and ethical practices.

DISCLAIMER

A statement that the publication is intended for educational purposes only and that the information may change without notice.

Competition Act

Federal legislation in Canada designed to maintain and encourage competition, governing misleading and anti-competitive practices.

PCMLTFA

Proceeds of Crime (Money Laundering) and Terrorist Financing Act; legislation targeting activities used for money laundering or financing terrorism.

PIPEDA

Personal Information Protection and Electronic Documents Act; federal law that governs how private sector organizations collect, use, and disclose personal information.

Vicarious Liability

A legal doctrine where an employer can be held liable for the negligent acts of employees performed in the course of their employment.

Duty of Care

A legal obligation requiring a person to adhere to a standard of reasonable care while performing acts that could foreseeably harm others.

Negligence

A failure to exercise the care that a reasonably prudent person would exercise in similar circumstances.

Misleading Advertising

False or deceptive representations made to promote a product or service.

Fair Information Principles

Ten principles under PIPEDA that govern the collection, use, and disclosure of personal information.

Unrepresented Parties

Parties in a transaction without an agent, requiring registrants to ascertain their identity.

Client Information Record

Documentation that registrants must maintain containing personal information of clients involved in real estate transactions.

Receipt of Funds Record

Documentation required by registrants when receiving funds, detailing the identity of the individual providing funds and transaction details.

Suspicious Transaction Report

A report that must be filed with FINTRAC when a registrant has reasonable grounds to suspect a transaction is related to criminal activity.

Elements of Negligence

The three elements: duty of care, breach of standard of care, and damages that are not too remote.

Negligent Misrepresentation

A false statement made carelessly which induces another party to rely on it, leading to damages.

Fraudulent Misrepresentation

A false statement made knowingly or with reckless disregard for the truth, leading to damages.

Compliance Regime under PCMLTFA

A system of policies and procedures implemented by brokerages to ensure compliance with anti-money laundering regulations.

Privacy Compliance Officer

An individual designated within an organization to oversee compliance with privacy laws such as PIPEDA.

Legal Obligations of Registrants

Requirements imposed by law, such as verifying client identities and ensuring accurate advertising, to reduce liability risks.

Client Risk Assessment

The process of evaluating a client's risk level for money laundering and other illicit activities.