🤝 Agency Relationships, Service Agreements and Conflicts of Interest

1. How does Rule 1(1) of the Real Estate Act Rules define a "customer"?

1. A person who has engaged a licensee under a service agreement that is not yet in writing
2. A person who has contacted, but not engaged or employed, a licensee to provide services
3. A person who has signed a customer status acknowledgement with any brokerage in Alberta
4. A person who receives facilitation services under a written transaction brokerage agreement

Rule 1(1)(i) defines a customer as a person who has contacted, but not engaged or employed, a licensee to provide services. Someone who has engaged a licensee is a client even if the service agreement is not in writing (Rule 1(1)(g)), and both parties to a transaction brokerage agreement are clients receiving facilitation services (Rule 1(1)(gg.1)-(gg.2)). A customer status acknowledgement documents customer status; it does not define it. (Real Estate Act Rules, Rule 1(1))

2. According to RECA's Consumer Relationships Guide, which responsibility does a client have toward the client's agent?

1. Keeping the agent's commission confidential from any other buyers or sellers
2. Signing a new service agreement each time the agent shows another property
3. Giving the agent any information or facts that could affect the transaction
4. Paying the agent's expenses even where the written agreement does not list them

The Consumer Relationships Guide ('Your responsibilities to the agent') lists three client responsibilities: give the agent any information or facts that could affect the transaction or the agent's ability to act, pay the fees agreed in the written agreement, and pay the agent's expenses as outlined in that agreement. Expenses the agreement does not provide for are not owed under the Guide. (Consumer Relationships Guide, p.1)

3. According to Rule 48, when is an agency relationship established between a buyer or seller and a licensee?

1. When the person signs the Consumer Relationships Guide acknowledgement and the licensee countersigns it
2. When the brokerage records the person as a client in its files and assigns a licensee to work with them
3. When the person pays a retainer to the brokerage and the funds are deposited into its trust account
4. When the person consents, expressly or implicitly, to the licensee acting for them and the licensee so acts

Rule 48(a): an agency relationship is established when a buyer or a seller expressly or implicitly consents that a licensee should act on his or her behalf, and the licensee consents so to act or so acts in a trade of real estate. Under Rule 48(b) that buyer or seller is a client. Signing a Guide acknowledgement, opening a file or paying money does not by itself create agency. (Real Estate Act Rules, Rule 48)

4. After going over the Consumer Relationships Guide with a buyer, an associate has spent a month showing her homes, telling her which ones to avoid and coaching her on what to offer. Nothing has been signed. What is the associate's main compliance problem?

1. Acting for a residential client without the written service agreement that Rule 43 requires
2. Advising a customer on offers before a customer status acknowledgement has been signed
3. Acting as her agent although agency can only be created by a signed written agreement
4. Coaching her on price, which is reserved for transaction facilitators acting for both sides

By conduct the buyer has implicitly consented and the associate has acted for her, so an agency relationship exists (Rule 48(a)); a client is a person who has entered into a service agreement 'whether or not that service agreement is in writing' (Rule 1(1)(g)). Because this is residential real estate, Rule 43(1) requires a written service agreement with that client: the missing agreement is the compliance gap. A facilitator may not coach on price either (Rule 59(4)(d)). (Real Estate Act Rules, Rules 1, 43, 48)

5. How does Rule 1 of the Real Estate Act Rules describe "confidential information"?

1. Any information concerning the client, such as their finances, personal situation, property and transaction
2. Information the client has marked as confidential in writing, but not facts that are on public record
3. Personal information as defined in the Personal Information Protection Act, and nothing more
4. Information about the client's finances, since other facts may be freely shared with other parties

Rule 1(1)(g.02): 'confidential information' includes any information concerning the client including the client's financial or personal situation, the client's real estate and the transaction involving the client. It is broader than personal information under PIPA and does not depend on the client labelling it confidential. (Real Estate Act Rules, Rule 1(1)(g.02))

6. Under Rule 60(1), in which situation may a brokerage and a buyer enter into a customer status acknowledgement?

1. The brokerage acts for a buyer and the buyer asks it to assist a relative with another purchase
2. The brokerage acts for a seller and is asked to assist a buyer in purchasing that seller's property
3. The brokerage acts for no one in the trade and wishes to limit its liability to both of the parties
4. The brokerage acts for both parties and wants to stop advocating for the buyer without notice

Rule 60(1): a customer status acknowledgement may be entered into when a brokerage (a) acts as the agent of a seller and is requested to assist a buyer in purchasing the seller's property, or (b) acts as the agent of a buyer and introduces the buyer to a seller's property. The party for whom the brokerage is not an agent signs it with the brokerage. (Real Estate Act Rules, Rule 60(1))

7. A customer status acknowledgement must state that the customer understands which of the following?

1. The brokerage will keep the customer's motivation confidential from the brokerage's own client
2. The brokerage will advise the customer on price, but will not negotiate terms on their behalf
3. The brokerage will advocate for the customer once its client consents to that in writing
4. The brokerage owes the customer no agency obligations, and in particular no fiduciary obligations

Rule 60(2): the customer acknowledges having chosen to forgo agency representation, understands that the brokerage does not owe the customer any agency obligations and, in particular, any fiduciary obligations (60(2)(b)), and that the brokerage will not give confidential advice, exercise discretion or judgment, or advocate on the customer's behalf (60(2)(c)). (Real Estate Act Rules, Rule 60(2))

8. Which obligation does a brokerage owe to a customer under Rule 60(3)?

1. Promoting the customer's interests when negotiating the price and terms of the agreement
2. Recommending the most suitable home inspector or appraiser for the customer's purchase
3. Not negligently or knowingly providing the customer with false or misleading information
4. Keeping all information the customer shares from the client the brokerage represents

Rule 60(3) limits the brokerage's obligations to a customer to: reasonable care and skill in the permitted activities, not negligently or knowingly providing false or misleading information, holding the customer's money in accordance with the Act, and complying with the Act, Regulations, Rules and Bylaws. Advocacy and recommendations are excluded (Rule 60(2)(c), 60(4)(c)). (Real Estate Act Rules, Rule 60(3))

9. Lena lists a bungalow for a seller client. An unrepresented buyer who has signed a customer status acknowledgement with Lena's brokerage asks her for help. Which request can Lena fulfil without breaching her obligations?

1. Suggesting an offer price she thinks the seller is likely to accept quickly
2. Recommending a specific mortgage broker she believes offers the best rates
3. Preparing the buyer's offer in accordance with the buyer's own instructions
4. Drafting a condition she believes will give the buyer an easy way to back out

For a customer buyer, Rule 60(4)(b) allows the brokerage to provide agreements and prepare all necessary documents in accordance with the customer's instructions. It may give names of service providers but not recommend one (60(4)(c)), and it may not exercise discretion or judgment, give confidential advice or advocate for the customer (60(2)(c)); Lena also owes loyalty to her seller (Rule 57(e)). (Real Estate Act Rules, Rule 60)

10. An unrepresented buyer viewing your seller client's condo asks, "Between us, would you offer $10,000 under list?" You act for the seller and the buyer is your customer. What is the most appropriate response?

1. Refuse to speak with the buyer further until the buyer signs a buyer representation agreement with you
2. Decline to advise on price, offer comparable sales data, and note the buyer may seek independent advice
3. Tell the buyer the lowest price the seller would accept, since the buyer asked for it in confidence
4. Give your honest opinion on price, since customers are owed reasonable care and skill by the brokerage

A customer receives no confidential advice and no services requiring discretion or judgment (Rule 60(2)(c)), but may receive statistics and comparable property information (Rule 60(4)(a)). Revealing the seller's bottom line would breach the loyalty and confidentiality owed to the seller (Rule 57(e)), and signing the buyer as a client would create a conflict with the seller. Licensees must not discourage anyone from seeking expert advice (Rule 42(d)). (Real Estate Act Rules, Rules 42, 57, 60)

11. Kofi represents a buyer client and introduces him to a private seller who has no representation. The seller signs a customer status acknowledgement with Kofi's brokerage. Which service may the brokerage provide to the seller?

1. Advising the seller whether the buyer's deposit is large enough to accept the offer
2. Assessing for the seller whether the buyer's financing is likely to be approved
3. Helping the seller negotiate a higher price than the buyer has offered in writing
4. Conveying to the buyer, in a timely manner, information the seller wants passed on

Rule 60(5) lists what a brokerage may do for a customer seller, including conveying to the buyer in a timely manner all information the customer wishes to have communicated (60(5)(e)), presenting offers, providing statistics and preparing documents on the customer's instructions. Advice, judgment and negotiation for the customer are excluded (60(2)(c)), and Kofi remains the buyer's agent (Rule 58). (Real Estate Act Rules, Rule 60(5))

12. You will not be representing a seller who has asked you to bring buyers to his property. According to RECA's guidance, what is best practice?

1. Treat the seller informally and avoid written documents so that no agency relationship can be implied by conduct
2. Explain the customer relationship and have the seller acknowledge it by signing a Customer Status Acknowledgement
3. Ask the seller to sign the transaction brokerage agreement so you can deal with both parties at the same time
4. Sign an exclusive seller agreement but add a clause stating that you will not owe the seller fiduciary duties

RECA's Designated Agency Practice Guide (p.5): if you are not going to represent a buyer or seller in an agency capacity, it is best practice to explain a customer relationship and have them acknowledge it by signing a Customer Status Acknowledgement (Rule 60). Avoiding paperwork does not prevent implied agency (Rule 48(a)), and transaction brokerage is only for two existing clients (Rule 59(1)). (Designated Agency Practice Guide, p.5)

13. Hana, a buyer client, chose customer status for one purchase so that her brokerage could keep representing the seller, who was also its client. That deal later collapsed. What is Hana's status with the brokerage now?

1. She stays a customer until her buyer agreement expires, because her change of status was permanent
2. She returns to client status under her existing written service agreement with the brokerage
3. She must sign a new buyer agreement, because choosing customer status ended her old agreement
4. She becomes a customer of every licensee at the brokerage until she signs a new consent form

RECA's Transaction Brokerage Practice Guide (p.13, 'If Client Chooses Customer Status'): if the specific transaction does not come together, the customer returns to client status according to their written service agreement with the initial brokerage (common law) or designated agent (designated agency). Customer status applied only to that transaction. (Transaction Brokerage Practice Guide, p.13)

14. Before a customer signs a customer status acknowledgement, what must the acknowledgement confirm the customer has been given?

1. A copy of the seller's listing agreement and the commission the seller is paying
2. A period of three business days to cancel the acknowledgement without any penalty
3. A written explanation from the broker of why the brokerage cannot represent them
4. The opportunity to request further information and independent advice about it

Rule 60(2): each customer status acknowledgement provides that the customer has received and read it and has been given the opportunity to request further information and independent advice concerning the acknowledgement and the representation relationships described. The Rules provide no cancellation period and no requirement to share the listing agreement. (Real Estate Act Rules, Rule 60(2))

15. The Consumer Relationships Guide describes three kinds of relationships a consumer can have with a real estate professional. Which list matches it?

1. Brokerage as agent (common law), individual as agent (designated), or sub-agent
2. Seller's agent, buyer's agent, or co-operating agent under a sub-agency agreement
3. Exclusive client, non-exclusive client, or transaction facilitator for both sides
4. Brokerage as agent (common law), individual as agent (designated), or customer

The Consumer Relationships Guide ('What this Guide explains') lists: 1) a brokerage acting as your agent (common law agency, which includes all brokerage professionals and staff), 2) an individual professional acting as your agent (designated agency), and 3) being a customer. It also explains what happens when the buyer and seller have the same agent. (Consumer Relationships Guide, p.1)

16. What does the Consumer Relationships Guide state about how real estate professionals must use the Guide with consumers?

1. They must give consumers the Guide and discuss it with them as a regulatory requirement
2. They must give the Guide to buyers, since sellers receive the listing agreement instead
3. They must post the Guide on the brokerage website, and consumers may read it if they wish
4. They must give the Guide to consumers after the offer is accepted, before the closing date

The Guide states that real estate professionals have a regulatory requirement to present and discuss it ('A real estate professional must give you this Guide and discuss it with you'), and the consumer signs that they have read and discussed it. Rule 60.1(1)(b) makes the Guide mandatory when licensees trade in residential real estate. (Consumer Relationships Guide, p.1-2; Real Estate Act Rules, Rule 60.1)

17. Which pairing correctly matches an agency duty in the Consumer Relationships Guide with what it requires?

1. Obedience: following every instruction of the client, including unlawful instructions
2. Full disclosure: telling the client in writing about the services the agent will provide
3. Confidentiality: sharing client details with other brokerages' licensees on request
4. Full accounting: reporting the agent's commission split with the brokerage to the client

Under the Guide, full disclosure requires the agent to tell the client, in writing, about the services they will provide and everything that might influence the client's decision. Obedience covers lawful, reasonable and ordinary instructions; confidentiality protects client information even after the relationship ends; full accounting concerns the money and property received for the client (money, keys, documents). (Consumer Relationships Guide, p.1)

18. Your seller client tells you not to mention to buyers that a technician recently confirmed a hidden carbon monoxide leak in the furnace flue. The client insists. What must you do?

1. Follow the instruction but suggest buyers order an inspection, so they can find it themselves
2. Refuse the instruction, and stop providing services if the seller still insists on it
3. Disclose the leak to buyers but keep acting for the seller without telling the seller you did so
4. Follow the instruction, because the duty of obedience requires you to obey your client

A hidden leak that makes the home dangerous to occupants is a material latent defect (Rule 1(1)(t)), which a seller's agent must disclose to all buyers (Rule 57(i)). Obedience extends to lawful instructions only (Consumer Relationships Guide; Rule 57(d)), and Rule 41(j) requires a licensee to refuse further services to a client who instructs them to withhold a required disclosure. (Real Estate Act Rules, Rules 1(1)(t), 41(j), 57)

19. A seller's listing with Jordan expired last year and was not renewed. Today, one of Jordan's buyer clients wants to offer on that home, now listed with another brokerage. What may Jordan do with the confidential information the seller shared during the listing?

1. Share it with the buyer, because the duty of confidentiality ended when the listing expired
2. Keep it confidential, because the duty of confidentiality continues after the relationship ends
3. Share it with the buyer's lender, since a lender is not a party to the purchase contract
4. Share it with the buyer if it is more than six months old and is useful to the negotiation

The Consumer Relationships Guide states that the agent must keep information confidential even after the relationship ends. Rule 42(c) prohibits using confidential information obtained from any person for personal gain or for any purpose other than that for which it was obtained, and Rule 44(1) bars disclosure unless the client authorizes it or the law requires it. (Consumer Relationships Guide, p.1; Real Estate Act Rules, Rules 42(c), 44(1))

20. Under the Consumer Relationships Guide, the duty of full disclosure has one stated limit. What is it?

1. The agent need not disclose a conflict of interest that the agent expects to resolve soon
2. The agent cannot give the client confidential information from another agency relationship
3. The agent need not disclose facts that the agent personally considers to be unimportant
4. The agent cannot disclose in writing any fact that the client could discover by an inspection

Full disclosure requires the agent to tell the client everything they know that might affect the relationship or influence the client's decision, even if they don't think it's important, including conflicts of interest. The Guide adds: 'The only information they can't give you is confidential information from another agency relationship.' (Consumer Relationships Guide, p.1)

21. The duty of reasonable care and skill in the Consumer Relationships Guide measures an agent against which standard?

1. The most experienced licensee registered with the same brokerage
2. The standard agreed in writing in the client's service agreement
3. A reasonable and competent member of the real estate industry
4. A licensed lawyer practising real estate law in the Alberta courts

The Guide: 'The agent must exercise reasonable care and skill in all their duties. They must meet the standard of a reasonable and competent member of the real estate industry.' Rules 57(g) and 58(g) impose the same duty of reasonable care and skill on sole agents. (Consumer Relationships Guide, p.1; Real Estate Act Rules, Rules 57(g), 58(g))

22. Under Rule 57, when must a seller's sole agent tell an interested buyer that the licensee is the seller's agent?

1. At the earliest reasonable opportunity
2. Before the buyer's offer is presented
3. When the buyer signs the purchase contract
4. Within 24 hours of the first showing

Rule 57(b): the seller's sole agent must, at the earliest reasonable opportunity, advise any buyer interested in the property that the licensee is the seller's agent. Rule 58(b) imposes the mirror duty on a buyer's agent toward sellers. (Real Estate Act Rules, Rule 57(b))

23. Under Rule 55(1), by when must a licensee make the required written disclosures to a person about the licensee's services and relationships?

1. Within 24 hours after receiving confidential information, or before an offer is written, if sooner
2. Before eliciting, or promptly on receiving, confidential information, and before any service agreement
3. After the service agreement is signed, at the same time the licensee delivers a true copy of it
4. Before the first offer is presented, so that both parties receive the same information together

Rule 55(1): before eliciting or as soon as possible upon receiving confidential information from any person concerning that person's real estate needs, motivation or financial qualifications, or in any event before entering into a service agreement, the licensee must make the written disclosures listed in 55(1)(a)-(d). (Real Estate Act Rules, Rule 55(1))

24. At a bona fide open house, a visitor chats with the listing licensee about price ranges and neighbourhoods. Under Rule 55(4), what is the effect of this conversation?

1. It creates a customer relationship that must be confirmed in writing within 24 hours
2. It does not, by itself, trigger the licensee's written disclosure duty under Rule 55
3. It triggers written disclosure, because every talk with a potential buyer counts
4. It creates an implied agency relationship between the visitor and the listing brokerage

Rule 55(4): the duty of disclosure is not triggered merely by a bona fide open house showing, preliminary conversations or small talk about price range, location and property styles, or responding to general factual questions. It arises once confidential information is elicited or received, or before a service agreement (Rule 55(1)). (Real Estate Act Rules, Rule 55(4))

25. After giving a buyer written Rule 55 disclosure, a licensee learns that her spouse is a part-owner of a property the buyer now wants to see. What does Rule 55 require?

1. Disclose the change to RECA's registrar, who will decide whether the buyer needs to be informed
2. Disclose nothing more, because Rule 55 disclosure is given once, before the service agreement
3. Disclose the change at the next scheduled meeting, since the original written disclosure is still valid
4. Disclose the change to the buyer immediately and use best efforts to get written acknowledgement

Rule 55(1)(c)-(d) requires written disclosure of any conflict of interest and of facts likely to influence the person's decision; Rule 55(2) requires the licensee to disclose immediately any material change in the facts disclosed, and Rule 55(3) requires best efforts to obtain written acknowledgement. A spouse's ownership interest is a conflict the buyer must know about (see also Rule 41(f)). (Real Estate Act Rules, Rule 55)

26. Which definition matches "sole agency" in Rule 1 of the Real Estate Act Rules?

1. A brokerage appoints one licensee to serve a party while others serve the other party
2. A brokerage acts as the agent of one party under an exclusive written listing agreement
3. A licensee acts as the agent of only one party in a trade, deal or management service
4. A licensee is the sole licensee at the brokerage allowed to work with a given client

Rule 1(1)(ee): 'sole agency' means a relationship in which a licensee acts as the agent of only one party in a trade, deal, property management service or condominium management service. A brokerage appointing different licensees for each party describes designated agency (Rule 1(1)(i.1)). (Real Estate Act Rules, Rule 1(1)(ee))

27. A seller's agent wants another brokerage to act for the seller as sub-agent while she is out of the province. What does Rule 57 require before she does so?

1. The seller's prior written consent to appointing the other brokerage as sub-agent
2. The registrar's approval, since appointing a sub-agent changes the licensee's registration
3. A written notice to the other brokerage, since the client's mandate stays unchanged
4. The broker's verbal approval, followed by a note in the transaction file within five days

Rule 57(f): a seller's sole agent must not appoint another brokerage to act on behalf of the seller as sub-agent without the seller's prior written consent. Rule 58(f) applies the same requirement to a buyer's agent, and Rule 58.1(3)(c) repeats it for designated brokerage agreements. (Real Estate Act Rules, Rule 57(f))

28. Under Rule 57, to whom must a seller's sole agent disclose the material latent defects affecting the property that are known to the licensee?

1. To all buyers, whether or not they are represented by a licensee
2. To buyers who first sign a customer status acknowledgement form
3. To the seller, who then decides whether buyers should be told
4. To buyers' agents, and not to buyers who have no representation

Rule 57(i): a seller's sole agent must disclose to all buyers all material latent defects affecting the property known to the licensee. The duty does not depend on the buyer's representation status or on the seller's permission (see also Rule 41(j)). (Real Estate Act Rules, Rule 57(i))

29. Amira's seller client has accepted a conditional offer. Two days later, a second buyer's offer arrives while the conditions are still outstanding. What does Rule 57 require Amira to do?

1. Present the new offer to the seller in a timely manner, even though an agreement exists
2. Hold the new offer until the first buyer's conditions are either waived or have failed
3. Return the offer to the buyer's agent, because the property is no longer available for sale
4. Present the offer if the first buyer agrees in writing that the seller may see it

Rule 57(j): the seller's agent must provide, in a timely manner, all offers and counter-offers to and from the seller even when the property is already the subject of an agreement of purchase and sale. How the seller may respond depends on the existing contract, a matter on which the seller should get expert advice (Rule 57(m)). (Real Estate Act Rules, Rule 57(j))

30. Under Rule 58, which statement describes a buyer's sole agent's duty when searching for properties?

1. Show the brokerage's own listings first, then other listings if the buyer is still not satisfied
2. Seek out properties that pay a commission at least equal to the one in the buyer's agreement
3. Advise the buyer of properties on a listing service, but not of private-sale properties
4. Seek out and advise of available properties that may suit, including other brokerages' listings

Rule 58(h): the buyer's agent must seek out and advise the buyer in a timely manner of available properties in the market area which may meet the buyer's requirements, including those listed with other brokerages and other available properties known to the licensee. Rule 58(a) requires best efforts to locate a property meeting the buyer's material requirements. (Real Estate Act Rules, Rule 58)

31. Tomás represents a buyer client interested in a house listed with another brokerage. A neighbour mentions that the basement has flooded each spring, but the listing says nothing about it. What do Tomás's obligations under Rule 58 require?

1. Ignore the comment, since the seller's agent alone is responsible for disclosing any defect
2. Take reasonable steps to look into the report and disclose the relevant facts to his buyer
3. Report the neighbour's comment to RECA, since an undisclosed defect makes the listing unlawful
4. Tell the buyer after an offer is accepted, so the report cannot affect the negotiations

Rule 58(i) requires the buyer's agent to take reasonable steps to discover relevant facts about any property the buyer is considering, Rule 58(j) to disclose in a timely manner all relevant facts known to the licensee, and Rule 58(k) to advise the buyer to obtain expert advice (e.g., an inspection). The seller's agent's duty under Rule 57(i) does not replace the buyer's agent's own duties. (Real Estate Act Rules, Rule 58(i)-(k))

32. Under Rule 58, what must a buyer's sole agent tell the buyer about competing offers on a property the buyer is interested in?

1. The number of competing offers, but not their terms, which belong to the other buyers
2. The existence and terms of any competing offers that are known to the licensee
3. The terms of competing offers, once the seller has accepted one of those offers
4. Nothing, since competing offers are confidential to the seller and the listing brokerage

Rule 58(n): the buyer's agent must disclose to the buyer the existence and terms of any competing offers known to the licensee for a property in which the buyer is interested. (Real Estate Act Rules, Rule 58(n))

33. A seller client asks her agent whether the sale will trigger capital gains tax. Under Rule 57, what is the agent's basic obligation?

1. Calculate the tax owing and include it in the seller's net proceeds statement
2. Refer the matter to the broker, who must give the seller a written tax opinion
3. Advise the seller to obtain expert advice on matters of importance to the seller
4. Tell the seller that tax questions fall outside the agent's mandate entirely

Rule 57(m): the seller's sole agent must advise the seller to obtain expert advice on matters of importance to the seller (Rule 58(k) is the buyer-side equivalent). Tax consequences call for an accountant or a lawyer; the agent should neither calculate the tax nor dismiss the question. (Real Estate Act Rules, Rule 57(m))

34. A listing associate tells an unrepresented buyer at a showing, "My sellers have already bought another house, so they'll likely take less." The sellers had mentioned their purchase to the associate when they signed the listing. Which duty owed to the sellers has the associate breached?

1. Confidentiality, by revealing the sellers' motivation without their authorization
2. Full accounting, by failing to record the conversation in the brokerage trade file
3. Obedience, because the sellers had not given any instruction about such a disclosure
4. Reasonable care, but not confidentiality, because the buyer is merely a customer

The sellers' motivation and situation are confidential information concerning the client (Rule 1(1)(g.02): the client's financial or personal situation and the transaction), even if the sellers never said it was confidential. A seller's agent owes fiduciary duties of loyalty and confidentiality (Rule 57(e)) and must not disclose client information unless authorized or required by law (Rule 44(1)); the Consumer Relationships Guide defines confidential information as including information about the transaction. Obedience concerns following instructions, and the duty applies whether the buyer is a client or a customer. (Real Estate Act Rules, Rules 1(1)(g.02), 44(1), 57(e); Consumer Relationships Guide, p.1)

35. A listing expires without a sale. The brokerage still holds the seller's spare keys, her survey and unspent money she advanced for advertising. What does the duty of full accounting require?

1. Keep the keys and documents on file for five years, as required for trade records
2. Account for the unspent money and return the keys and documents to the seller
3. Return the keys, and keep the money to offset time the licensee spent on the listing
4. Return the documents when the seller requests them in writing, but not before then

Consumer Relationships Guide, Full accounting: the agent must account for all money and property received while acting on the client's behalf, and everything a client puts in the agent's care (money, keys, documents) is returned when the agreement ends. Money paid for a specific purpose is also money held in trust under Rule 1. (Consumer Relationships Guide, p.1)